Advice re new-to-me car

Lunchmunch · 14 February 2018 at 6:27PM

Hello
Sadly my dad died a while ago and on the day a small inheritance came my old car decided to develop an electrical issue which will not be cost effective to resolve.
Big a bit of a hippy I thought I'd like a hybrid (not being totally committed to cycling on all my journeys!). I thought this would be straightforward but i feel exhausted by the process.
Test drive, fine. Sales pitch - turns out that the car may well be stolen from me if I don't take out HP at 8%, as this is searchable by car thieves and HP puts them off stealing it, and of course the insurance doesn't cover it for the full amount I would pay (doesn't this suggest its overpriced?!) I don't want HP at 8% to presumably line the salesmans pocket. Do I really have to risk the insurance not covering the full amount I would pay? Any advice or wise words?
Thank you

lincroft1710 · 14 February 2018 at 6:33PM

Lunchmunch wrote: »

.
Sales pitch - turns out that the car may well be stolen from me if I don't take out HP at 8%, as this is searchable by car thieves and HP puts them off stealing it

Salesmen do come up with some interesting patter, don't they?

knightstyle · 14 February 2018 at 6:35PM

Do the deal with finance to please the dealer and get a bigger discount, then a month later pay the finance company off. Job done!

flashg67 · 14 February 2018 at 8:14PM

Twaddle. As above, plus if you really want to avoid a finance shortfall (if you do get finance), research gap insurance - you'll find it half the price online. But why pay 8% for finance unless you can get more investing your money elsewhere

New_World_Man · 14 February 2018 at 9:07PM

Of course the 8% may just be flat rate and not APR, which would mean a significant difference.

Mike967angus · 14 February 2018 at 9:20PM

Why take the finance if you don't need to? Unless they give you enough of their commission to make it worth your while then pay it up.
My guess is the cars cheap and the finance is where their profit is.
Gap insurance is cheaper to do yourself if your worried.

sheslookinhot · 14 February 2018 at 9:23PM

If the insurance doesn't cover the value it is overpriced.

force_ten · 14 February 2018 at 11:53PM

you buy a new car and the minute it is driven out of the showroom it loses a large chunk of money, could be into the thousands

so if you write the car off on the way home you may well have a shortfall in what you paid the dealer and what the insurance valuation pays out this is what Gap insurance is for dont take the dealer offering as it will be three or four times the cost of independently sourced gap insurance

the talk of you must take the finance is not true but to get to the price you are being quoted the salesman may well be including dealer and manufactures contributions that are only available if you take the te finance

ask for the best cash price and look for gap insurance on the net and if the price quoted is to high then walk away

unholyangel · 15 February 2018 at 12:08AM

sheslookinhot wrote: »

If the insurance doesn't cover the value it is overpriced.

I dont believe that the OP said it wouldn't cover the value, I believe they said it wouldn't cover what they paid.

Of course insurance won't cover what they paid - if you write your car off after 5 years, the insurance aren't going to pay out what you paid for the car - only what the car was valued at when it was stolen/written off/whatever.

However if the salesman was describing what gap insurance would be used for, then he's talking out his !!!! as that situation only arises when paid for via finance (ie finance agreement for a £30k car with £36k total repayable over 60 months....you'd have a balance owing of just under £29k after a year but your car might only be worth £22k).

Tom99 · 15 February 2018 at 12:20AM

Tell them your best cash offer, you are ready to buy that day and you are not interested in finance. You also have other cars you are on your way to look at.

Depending on the age/value of the car, look up online GAP insurance. Don't ever take out anything offered by the dealer as it is probably the very same policy but at three times the price.

AnotherJoe · 15 February 2018 at 12:53PM

Lunchmunch wrote: »

Hello
Sadly my dad died a while ago and on the day a small inheritance came my old car decided to develop an electrical issue which will not be cost effective to resolve.
Big a bit of a hippy I thought I'd like a hybrid (not being totally committed to cycling on all my journeys!). I thought this would be straightforward but i feel exhausted by the process.
Test drive, fine. Sales pitch - turns out that the car may well be stolen from me if I don't take out HP at 8%, as this is searchable by car thieves and HP puts them off stealing it, and of course the insurance doesn't cover it for the full amount I would pay (doesn't this suggest its overpriced?!) I don't want HP at 8% to presumably line the salesmans pocket. Do I really have to risk the insurance not covering the full amount I would pay? Any advice or wise words?
Thank you

You really must to go to a different dealer, if they are spinning guff like that who knows what else they are telling you that's also complete bunkum.

Advice re new-to-me car

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free