Gap insurance help

reggi2022

I brought a car in 2021 from Arnold Clark and I used my old car which was on finance at the time the part ex value was less than my settlement value but I paid the difference am I entitled to the full price of the vehicle before the part ex as I paid the difference or am I only entitled to the price after the part ex 

Brie

The exchange is part of what you paid for the car so it's the price agreed.  

reggi2022

Brie said:

The exchange is part of what you paid for the car so it's the price agreed.  

(Removed by Forum Team) So that should be to the full price? 

DullGreyGuy

reggi2022 said:

I brought a car in 2021 from Arnold Clark and I used my old car which was on finance at the time the part ex value was less than my settlement value but I paid the difference am I entitled to the full price of the vehicle before the part ex as I paid the difference or am I only entitled to the price after the part ex 

Your missing part of the story... presumably you car has now been written off? Did you buy RTI GAP?

Assuming the above is correct then you get the invoice price, your PX was a form of payment towards the invoice, it didn't reduce the invoice itself. 

CliveOfIndia

reggi2022 said:

So that should be to the full price? 

Correct - £11,732 (obviously the £30 RFL wouldn't be covered).

You might want to delete that picture and re-post it with your personal details obscured

Dave_5150

Depends on what GAP the product you have is for. If it is RTI then how you funded the vehicle is irrelevant as per the post above. If the GAP is to cover your finance agreement then that is what will be paid.

reggi2022

DullGreyGuy said:

reggi2022 said:

I brought a car in 2021 from Arnold Clark and I used my old car which was on finance at the time the part ex value was less than my settlement value but I paid the difference am I entitled to the full price of the vehicle before the part ex as I paid the difference or am I only entitled to the price after the part ex 

Your missing part of the story... presumably you car has now been written off? Did you buy RTI GAP?

Assuming the above is correct then you get the invoice price, your PX was a form of payment towards the invoice, it didn't reduce the invoice itself. 

Yes the car is written off and all outstanding money is paid off to my finance company and I was left with roughly £1800 from my car insurance. I have RTI cover from my GAP insurance I was just under the impression that I would receive the difference from what my car insurance company have paid to the value of the car before I part exd which is roughly £16000

DullGreyGuy

You will receive the difference between the valuation of your insurer (ie amount paid to finance + amount paid to you + excess (some GAP policies cover some of the excess depending on a cap)) and the original invoice price of what you paid for the car (potentially minus a few extras like car tax)

This feels like its going to be one of those painful slow drip feed of information until we finally get to the real question.

reggi2022

DullGreyGuy said:

You will receive the difference between the valuation of your insurer (ie amount paid to finance + amount paid to you + excess (some GAP policies cover some of the excess depending on a cap)) and the original invoice price of what you paid for the car (potentially minus a few extras like car tax)

This feels like it’s going to be one of those painful slow drip feed of information until we finally get to the real question.

Thank you all I was after was clarification of if I was going to receive up to the value of the car before or after part exchanging my previous car as the value of the part exchange was lower than the settlement amount and because I paid the difference from the part exchange to the settlement was that classed as full payment 

Mildly_Miffed

So... (made up numbers)

purchase price of car in 2021 - £10,000
px allowance for old car - £5,000
balance payable - £5,000 cash

but
settlement of old car's finance - £6,000
so £1,000 cash payable to finance

so you paid £6k cash plus effectively £4k PX for your old car.

To the gap insurer, though, how you financed the £10k purchase price is irrelevant. You paid £10k for that car.

Return-to-invoice gap will pay you the difference between your insurer's write-off value and the £10k.
So if the write-off value was £7.5k, the gap will pay £2.5k.

reggi2022

Mildly_Miffed said:

So... (made up numbers)

purchase price of car in 2021 - £10,000
px allowance for old car - £5,000
balance payable - £5,000 cash

but
settlement of old car's finance - £6,000
so £1,000 cash payable to finance

so you paid £6k cash plus effectively £4k PX for your old car.

To the gap insurer, though, how you financed the £10k purchase price is irrelevant. You paid £10k for that car.

Return-to-invoice gap will pay you the difference between your insurer's write-off value and the £10k.
So if the write-off value was £7.5k, the gap will pay £2.5k.

Thank you so much, I think that what made me question it was that the price before part ex wasn’t shown on the invoice. Just the price of the part ex and the price due from finance company (as shown in the picture )