PCP plus Gap Ins Plus Tyre and Alloy ins Plus Minor Damage Plus Fabric and paintwork protection

philng

Son has been for a pcp quote at a dealer for a 3 yr old car and all the above ‘optional extras’ were quoted adding £40pm to a £230pm quote. Are any of the really needed or just a commission earner?

MorningcoffeeIV

Probably both, depending on his needs. 

Decide which he wants and then source them independently at a much cheaper price.

Grumpy_chap

Lots of variables to consider.  Probably the largest is what the plan is at the end of the PCP term - if the car will then be kept (balloon payment made) then the benefit of the cover is less.
If any cover is required, can the same cover be obtained more competitively elsewhere?

Nearlyold

My somewhat cynical views: -

GAP Insurance - a potentially very worthwhile insurance, typical dealer price around £300+, cost to the dealer circa £90 or less, cost of buying an equivalent policy online or from a broker circa £120 upwards.

Fabric Protection - basically it's like Scotchguard (marketed originally to spray on your sofa) or similar which you can buy yourself for around £10 to £15 for a bottle. 

Paint Protection - You can go to a Professional Valeter/Detailer and get a really top class job or get the dealer to charge you £300 so they can pay one of their car wash guys to slap it on with a dirty cloth after a quick rinse of your new car, cost to dealer about £30 to £40 including the product.

Tyre & Alloy Insurance, typical cost at the dealer usually just over twice the cost of two new tyres, I guess if you can't sleep at night through worrying over getting a puncture or dinging an alloy then go for it otherwise I wouldn't bother.

DoublePolaroid

GAP insurance might be worth considering depending on his attitude to risk and personally it’s a no-brainer on a brand new car (though buying new isn’t exactly MSE approved). On a used car it depends on the value and the depreciation curve. However I would never buy dealer GAP. In my experience it’s always hideously overpriced, even after haggling and compared to some other non-dealer insurers the cover isn’t always as good. If he’s interested in GAP I’d suggest looking at the ALA Insurance website to get an idea of the cost (I’m not affiliated with them but they provide 5* Defaqto level cover).

Paint protection is simply a con, assuming it’s what I think it is, which is basically a polish and coating by the minimum wage employees tasked with prepping dealer cars (i.e. they don’t really know how to properly treat car paint) plus maybe some “free” Autoglym cleaning products. Proper paint protection costs hundreds to be done by a pro; the dealer version is probably worse than an average person could do themselves with two buckets, shampoo, a wool mitt and some wax.

As far as alloy insurance goes, it’s not hugely expensive to get alloys refurbished unless they’re exotic e.g. diamond cut or made from some type of unobtanium alloy - £50 a corner is a ballpark for a decent job. To make the insurance worthwhile you end up having to use it every time you get a scuff but then that incurs inconvenience in having to take the car in each time (or worse, you get a substandard driveway “repair”). If you don’t scuff the wheels often, then the insurance probably isn’t worth it regardless. Again though if he’s interested in this he could get it cheaper elsewhere (e.g. ALA also offer alloy insurance). 

I wouldn’t buy anything from a car dealer other than the car.

MrFrugalFever

Depending on the dealership group and contract it has with the administrator of the products, you could find that the GAP (Guaranteed Asset Protection) insurance may well be the only insurance products, the others may operate in a different fashion. 

An exterior and interior protection stain guard application product will never be an insurance product.

As with any insurance product, do read the small print not just the Initial Disclosure Documentation (IDD).

Having damage corrected on your (sons) car could become rather costly, the idea of not going through insurance paying excesses and declaring claims for next 5 years with increased premiums will likely be a better option.

Often most if not all of these additional protection products will likely be able to be purchased separately on a 0% direct debit so if looking to purchase all for peace of mind, I would recommend having them removed from the interest bearing PCP and pay separately.

MalMonroe

I have a car on PCP and I don't pay anything like £230 pcm. I took it on when it was three years old, also. It's not big and fancy, it's a small hatchback and the PCP deal at the time was 0% interest for the first twelve months. NO extras!

Because if you carry on to buy the car, then when it's yours, if it has blemishes and damage, you either live with them or get them fixed.

If you don't carry on to buy the car and hand it back, then they do allow for fair wear and tear. Certainly where I got mine from, anyway. (Toyota).

Having read some of the comments on here since I got my car, I feel very lucky and grateful to have been given such a fabulous deal. Still have the car, still paying PCP but now I pay interest, which is minimal (£220 p.a.)

I'd be inclined to advise your son to shop around and find a better deal without any extras that really are not necessary. (Maybe go along with him?)

Unfortunately I have found over the years that when it comes to cars, some people tend to think that being a single woman equates to having no brain. Women can learn about cars! I had to. I also think that applies to young people. Often having someone with you can deter salespeople (sorry but it's usually men) from trying to sell you all kinds of things you don't want. Or need. Also, a great, simple motto - just say no.

MrFrugalFever

MalMonroe, 

The OP’s son needs to make his own informed decision. 

The car salesperson is just that, a sales person! Who’s job, which will likely pay LESS than national living wage, is to sell a car and some protection products to help customers keep their cars in best value for if/when they decide to change.

if you presented your car to me with several dents, deep scratches a scuff and 2 - alloy wheels kerbed I would NOT treat that as fair wear and tear, it requires body shop attention for the next customer to consider a purchase, even more so if it is a representative main dealer with a reputation to uphold.

So back to my original point, the OP’s son may consider that having low level damage repaired, his interior stain protected and his financial interest covered in the event of a total loss very valuable to him or of no value at all.

Grumpy_chap

Nearlyold said:

Fabric Protection - basically it's like Scotchguard (marketed originally to spray on your sofa) or similar which you can buy yourself for around £10 to £15 for a bottle. 

Paint Protection - You can go to a Professional Valeter/Detailer and get a really top class job or get the dealer to charge you £300 so they can pay one of their car wash guys to slap it on with a dirty cloth after a quick rinse of your new car, cost to dealer about £30 to £40 including the product.

The OP said buying a 3 yo car.
The car may already have these treatments applied and you can't really protect already protected fabric.
The car may already have marks that defeat having the protection in any case.

DoublePolaroid

MrFrugalFever said:

…some protection products to help customers keep their cars in best value for if/when they decide to change.

That’s the thing. Neither fabric protection (which if you really wanted you could do easily yourself for the cost of the product) or paint protection - which genuinely makes the condition of the paint worse when not done by a professional or hobbyist - actually do what they purport to do. Which is why he really should not pay for them. 

There’s some detail missing in the OP but assuming 3 year PCP, he’s paying a guaranteed £1440 for the extras. If there’s a concern about the paint condition at the end of the term, then a professional detailer will charge maybe £300-400 to bring the car to better than brand new showroom condition. Alloys maybe £200 total if you have kerb blindness and wait until just before handing the car back to get them done. GAP depends on many factors but on a used car with those monthlies £100-200 tops. If there’s a concern about wrecking the fabric, car seat covers are buttons. Tyres £100-200 depending on size/brand and how many punctures realistically is he going to have that can’t be repaired for much less than that? It all comes to far less than £1500 especially when considering none but the most clumsy/unlucky drivers would need to fork out for all of that lot. 

[Deleted User]

MalMonroe said:

If you don't carry on to buy the car and hand it back, then they do allow for fair wear and tear. Certainly where I got mine from, anyway. (Toyota).

There are industry guides on wear and tear, scratches are done on length and depth for example, alloy kerbing is unlikely to be accepted. You can find this information here for example. I would politely suggest you keep this information handy and use it to give a correct reply next time