new BMW caught fire, wrote off 2nd car and damaged a 3rd - help

k3lvc

debtdebt wrote: »

Don't you have to complete a form stating you've refused GAP insurance when it gets offered at the point of sale? Surely you'd remember that.

Only if finance is taken through dealership. In this case OP had posed as a cash buyer and sought finance elsewhere without dealerships knowledge

arcon5

Strider590 wrote: »

Someone sure likes debt in their family, things are so much simpler when actually own your car.

Not really relevant or any of your business is it

force_ten

k3lvc wrote: »

Only if finance is taken through dealership. In this case OP had posed as a cash buyer and sought finance elsewhere without dealerships knowledge

That is not strictly true, my last car purchase was a cash sale and the salesman took every opportunity to push gap insurance

they make more money selling overpriced extras than they do selling a car so why would they miss an opportunity to boost profits/commission

Mercdriver

Strider590 wrote: »

Someone sure likes debt in their family, things are so much simpler when actually own your car.

Who are you to be judge and jury?

Even if you were a pure cash buyer you would still be in a position where you would have a shortfall between the settlement and the cost of a new car.

Or are you Alan Sugar in disguise and can just buy another car without being affected by gaps between settlement and a replacement car.

Geoff1963

I would write to BMW about the fire, see what they say.

k3lvc

force_ten wrote: »

That is not strictly true, my last car purchase was a cash sale and the salesman took every opportunity to push gap insurance

they make more money selling overpriced extras than they do selling a car so why would they miss an opportunity to boost profits/commission

Maybe time to re-read the comment. As a cash buyer there is no obligation for dealer to offer GAP insurance and therefore no need for them to get your signature that you've declined.


That obviously won't stop some offering it

force_ten

k3lvc wrote: »

Maybe time to re-read the comment. As a cash buyer there is no obligation for dealer to offer GAP insurance and therefore no need for them to get your signature that you've declined.


That obviously won't stop some offering it

I have re-read the comment and quoted it below and there was no mention in your original post that as a cash buyer there is no obligation for dealer to offer GAP

k3lvc wrote: »

Only if finance is taken through dealership. In this case OP had posed as a cash buyer and sought finance elsewhere without dealerships knowledge

dacouch

facade wrote: »

So would I, but I don't believe you would be covered, there has to be an element of blame to claim against a third party.

If an arsonist set fire to the other car you would have to claim against him, not the owner of the car.

When the Renault down the road burst into flames and pretty much burned down the owner's house (The plastic soffits disappeared, as well as the window frames, good job the Fire Brigade were quick) it was the house insurance that paid for the house repairs.

I agree with your comments but would just like to clarify that the home owner had no option to claim from his Home Insurance as being the owner of the car he cannot sue himself under the third party element of the policy (Even assuming he had been negligent)

bazzyb

scottvsaunders wrote: »

2) My wife's car is a Nissan that is on HP - we used a 3rd party finance company (Money Barn) to lend us the money to buy the vehicle from a Nissan dealership. As far as the dealership was concerned we were cash buyers and repay monthly repayment to Money Barn as part of a 60-month agreement. When we spoke to the insurance company on the Nissan they advised the car was worth £9750, however, the outstanding finance on the Nissan is approx £15000 leaving us with some rather nasty negative equity. What can we do about this in the event of the Nissan being wrote off ? Do I just accept the insurance write off, use the payout money to purchase a new car as cash and continue to repay the same monthly payments essentially not telling Money Barn what has happened or will the insurance go to them, we have the replay the negative equity still and end up car less but still making payments (as situation I really do need to avoid like the plague)?

Moneybarn do not do personal loans so this was not a cash purchase and the dealership did not think you were a cash buyer. The agreement will be hire purchase (or conditional sale) and the dealership would have had to invoice Moneybarn directly (or possibly the broker if you used one).

Your wife does not own the car, Moneybarn owns it and any insurance settlement will be paid to them and not to your wife. Whilst you may still have £15k left to pay on the agreement, the actual settlement figure may be less than that as you would not have to pay the whole remaining interest - and considering Moneybarn have rates from around 35-65% APR that could be quite a significant amount of interest, depending how far into the 60 month term you are.

AdrianC

Well, that interest rate certainly explains the monumental amount of negative equity...