Add on Insurance from Car dealership

MrEnigma

Hope Im the right place.
I will keep it short to make sure that I am. Purchased a second hand car from a dealership, signed copius amouts of documents on the premises, which included no less than extra 5 insurance polices amounting to an extra 5K which was added to the finance agreement.This came to light when the agreement arrived via post from the finace company. I have been in touch with the dealership, and have asked for a review of these polices. First by phone within 14 days, and now via emails. I am still within my 14 day cooling off period from the finance company. What options do I have?

Thanks

400ixl

What are these 5 insurance policies for?

MrEnigma

Gap Insurance
Gardex - Ceramic and leather guard 
Breakdown assistance (already have a policy)
Tire and alloy insurance
Smart
Maintenance & Inspection
extra 2 year warranty (Car still in warranty from Main Car Dealership from new)

Brie

well you can normally cancel any insurance within 14 days but they may try to levy an admin fee for the privilege.   If they do I would then proceed to complain first to the manager of the dealership and then up the management line from there about how they were using smoke and mirrors to get you to agree to something that was neither required nor wanted.  Frankly it all reeks of someone desperate to meet any of year quotas to get their bonus.  Had a similar problem when we bought a car the last week of December a few years back.  

VWPolecat

They could have added the all important volcano insurance. . Try and dump all of them before they spend the big commission you have given them.

Veteransaver

This is quite common,  though they seem to have been pretty liberal in the extra insurances.
Were they not itemised on the agreement you signed? They should have been.
I had a dealer try to add 3 years gap insurance , scotch guard and alloy cover to a PCP deal I was negotiating, conveniently it totalled exactly £1000 so looked just like his bonus / hoodwink payment.
Whilst they were listed on the finance agreement he didn't verbally tell me he was doing it.
I walked away completely in the end, why he though he could hoodwink me I don't know.
Do you own the car yet? You should be able to cancel them all (except the Gardex if you've already car, as that isn't insurance), mention misselling as selling someone any sort of insurance without checking whether they have existing cover is quite rightly frowned upon, Eg breakdown cover of you already have it.
This whole fiasco is exactly the reason I refuse to use dealers anymore.

MrEnigma

OK.

I have had commuication from the dealership, and their stance at the moment is that I have signed the documents. As its the add on insurance that Im in dispute with, Im quite sure I have rights. See below last draft of email.

'For complete transparency, I would like Insurances cancelled and taken off the finance agreement. I have contacted your business within 14 days of signing these documents.

Without prejudice. I believe that -

These policies have also been mis-sold, as some were already in place from previous PCP purchases. And the extra warranty will not start for another 6 months. So I have the opportunity to review and/or purchase as and when required. Also I have the right to cancel any insurance agreements within the 14 days after receiving the documents from the finance company via post.

To clarify the policies that want to cancel are -

• Gap Insurance (already have cover and I can amend details for current vehicle if required)
• Extra Warranty (Car is still in warranty from manufacturer)
• Tire and Alloy Insurance
• Smart

As these policies were taken out with 'xxxxxxx', I'm expecting 'xxxxxx' to cancel these policies fully without any admin fees, and amend the financial agreement as  required. I look forward to your response in this matter.'

*End of Email*
 'xxxxxx' is the name of the dealership

Any further advice would be much appreciated from the experts here. As in what would be my next steps to take? Just trying to get fully prepared.

ReplyForward

daveyjp

Whenever I have bought vehicles from main dealers I have had to sign papers acknowledging I have been offered the various insurances, I have had chance to review what is being offered and I have either accepted or refused.

These are sometimes done during the deal, or they are given to me to take away and decide before picking up the vehicle.

The only time this didn't happen was with a Toyota about 16 years ago.  They included lots of extra costs as part of the OTR price which I queried and they were then removed.  We didn't buy from them due to what I saw as being an underhand tactic.

Sounds like this dealer is pulling a fast one.

MrEnigma

Just an update and indeed a bump.

Letter sent via post to dealership with a staement of facts. Together with email
Dealership has advised that all Insurances will be cancelled, but are just dragging their feet, saying waiting for the refund from the insurance before they can issue.

8 weeks not passed before Ombudsman will step in. I have advised Dealership of my intentions to get Ombudsmen involved.

After digesting the details of the insurance polices, it is clearly stated that any cancellation should be made via the dealership within 30 days. ( this was actioned ) and cancellation after this 30 days would result in a pro rata refund.

Commuication has been made with the finance company stating my concerns. Finance company has responded saying that there is no mention of the Insurances being added to the agreement. Thus the car sale has been bumped by 5K

With payments being made on a finace agreement that is clearly 5k above what it should be. What are my options to recover the interest on these payments, and indeed recover the '5k'. I would like advise on how to draft a powerful email stating my intende actions.

Thank you

Wonka_2

MrEnigma said:

Just an update and indeed a bump.

Letter sent via post to dealership with a staement of facts. Together with email
Dealership has advised that all Insurances will be cancelled, but are just dragging their feet, saying waiting for the refund from the insurance before they can issue.

8 weeks not passed before Ombudsman will step in. I have advised Dealership of my intentions to get Ombudsmen involved.

After digesting the details of the insurance polices, it is clearly stated that any cancellation should be made via the dealership within 30 days. ( this was actioned ) and cancellation after this 30 days would result in a pro rata refund.

Commuication has been made with the finance company stating my concerns. Finance company has responded saying that there is no mention of the Insurances being added to the agreement. Thus the car sale has been bumped by 5K

With payments being made on a finace agreement that is clearly 5k above what it should be. What are my options to recover the interest on these payments, and indeed recover the '5k'. I would like advise on how to draft a powerful email stating my intende actions.

Thank you

So have you any communication showing a value attributed to those policies and that you're paying for them independently or have they rolled them into the value of the car/finance as a freebie and therefore cancelling them isn't going to get you any refund. Does the invoice for the car mention them and is the value on the invoice the same as the amount financed ?

I understand that sometimes heart overrules head when buying a car, especially when under pressure near the year-end but signing for 5 policies seems ludicrous.

Given the values being discussed is this a main dealer (or part of a large group) - and maybe more importantly are they accredited to The Motor Ombudsman

MrEnigma

There was emails stating the evalution of 'some' of these polices. And the email 'documents' also states the right to cancel within 30 days by contacting the dealership. For a full refund. I have documentation from initial 'sale' clearly stating the cost of the car, and NOT the add ons. Not sure if the dealership has direct access to the manufacturer. And if they are a member of the motor ombudsman. (I will research these facts).