GAP insurance and tyre insurance for new car

macman

Why buy a new Merc if you can't afford to put tyres on it?
What you lost in depreciation the day you drove it home would buy several sets of tyres.

saverbuyer

I bought a new Mercedes recently and purchased my GAP insurance from a third party (from the which article above). The difference was approx. £300 and starts in year 2 after the deferred period.

Are you saying Mercedes would have rejected you on finance because of £400 on GAP? Maybe you are stretched?

vekma

technically if you have tyre insurance you could when your tyres are on 1.7mm run over a pile of nails the someone had scattered on the road, then theoretically get 4 brand new tyres for free

System

vekma wrote: »

technically if you have tyre insurance you could when your tyres are on 1.7mm run over a pile of nails the someone had scattered on the road, then theoretically get 4 brand new tyres for free

Carry your own stinger :rotfl:

To be serious, you could probably only get away with that once and the second time you try they would look back at the previous claim

InsideInsurance

IanMSpencer wrote: »

3) What is the gap across the time covered? Clearly on a new/nearly new car the gap is biggest when the depreciation has exceeded the payments, i.e. in the first year, the remaining time how big is the real gap?

That sounds like you are talking about Financial GAP cover, on the flip side if you have RTI or VR GAP then it pays out the most at the end of the policy because the car will have depreciated the most and it is technically also when the car is more likely to be written off given its now lower value

jimjames wrote: »

But it only pays out if you have an accident and if your car is written off and if the payout is less.

Yet after 3 years when you come to change your car the value is less due to depreciation. Why not just put the money aside?

Seems like there is insurance for everything playing on everyone's perception of risk.

It doesnt just pay out for a total loss after an accident, it would also pay out after fire or theft where the vehicle is written off either due to damage or because is stolen and unrecovered.

Given insurance is a risk transfer mechanism its not surprising products exist around peoples perceived risks. It is correct however that people do need to set their own risk appetites and decide where the balance is between paying a known small loss (aka premium) -v- the risk of a large loss (a potential claim)

Personally I didnt buy GAP on any of my cars and thankfully to date I've never had a car written off. You will find plenty of people who have benefited from having the cover and in my claims handling days I had a lot of distressed claimants who only realised that they were still liable for the outstanding finance after their car was written off.

InsideInsurance

saverbuyer wrote: »

Are you saying Mercedes would have rejected you on finance because of £400 on GAP? Maybe you are stretched?

Does Mercedes really reject people? For me they did no credit reference checking, no work reference, no proof of income, fill in a form and send 3 months of your main current account statements. Call back within a couple of hours saying it was all fine.

My main current account bank statements dont even show too much as like many I use several different accounts and put everything I can on a reward credit/charge card plus they accepted downloads from the internet which could be easily altered and without CRA checks being done they'd be none the wiser.

saverbuyer

InsideInsurance wrote: »

Does Mercedes really reject people? For me they did no credit reference checking, no work reference, no proof of income, fill in a form and send 3 months of your main current account statements. Call back within a couple of hours saying it was all fine.

My main current account bank statements dont even show too much as like many I use several different accounts and put everything I can on a reward credit/charge card plus they accepted downloads from the internet which could be easily altered and without CRA checks being done they'd be none the wiser.

I had a similar experience. I only had to show current account statements for the previous 3 months. Like you, I just showed statements from one of my 123 accounts; I don't even use them as current accounts but saving accounts. I don’t think they even credit scored the application. I'm surprised someone would fail for £400 of GAP.

I actually negotiated the deal as if I was taking the car out on Mercedes (agility I think) finance and paid the amount off within 7 days.

I actually got a few calls from the dealer sort of complaining for some reason.

InsideInsurance

saverbuyer wrote: »

I don’t think they even credit scored the application

They may well have used their internal scoring but I checked all 3 CRAs a few month later as I was interested to see how the actual debt showed up and noticed none had any footprints (public or private) from any company around the time I applied

saverbuyer

InsideInsurance wrote: »

They may well have used their internal scoring but I checked all 3 CRAs a few month later as I was interested to see how the actual debt showed up and noticed none had any footprints (public or private) from any company around the time I applied

I checked my credit report this month. Nothing. Maybe next month.

uknick

saverbuyer wrote: »

I bought a new Mercedes recently and purchased my GAP insurance from a third party (from the which article above). The difference was approx. £300 and starts in year 2 after the deferred period.

Are you saying Mercedes would have rejected you on finance because of £400 on GAP? Maybe you are stretched?

I think the OP meant he declined the offer of GAP because the Mercedes product was too expensive.