Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Lunchmunch
    • By Lunchmunch 14th Feb 18, 5:27 PM
    • 2Posts
    • 1Thanks
    Lunchmunch
    Advice re new-to-me car
    • #1
    • 14th Feb 18, 5:27 PM
    Advice re new-to-me car 14th Feb 18 at 5:27 PM
    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
Page 1
    • lincroft1710
    • By lincroft1710 14th Feb 18, 5:33 PM
    • 10,659 Posts
    • 8,898 Thanks
    lincroft1710
    • #2
    • 14th Feb 18, 5:33 PM
    • #2
    • 14th Feb 18, 5:33 PM
    .
    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
    Originally posted by Lunchmunch
    Salesmen do come up with some interesting patter, don't they?
    • knightstyle
    • By knightstyle 14th Feb 18, 5:35 PM
    • 4,717 Posts
    • 1,753 Thanks
    knightstyle
    • #3
    • 14th Feb 18, 5:35 PM
    • #3
    • 14th Feb 18, 5:35 PM
    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
    • By flashg67 14th Feb 18, 7:14 PM
    • 2,461 Posts
    • 1,610 Thanks
    flashg67
    • #4
    • 14th Feb 18, 7:14 PM
    • #4
    • 14th Feb 18, 7:14 PM
    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
    • By New World Man 14th Feb 18, 8:07 PM
    • 27 Posts
    • 6 Thanks
    New World Man
    • #5
    • 14th Feb 18, 8:07 PM
    • #5
    • 14th Feb 18, 8:07 PM
    Of course the 8% may just be flat rate and not APR, which would mean a significant difference.
    • Mike967angus
    • By Mike967angus 14th Feb 18, 8:20 PM
    • 23 Posts
    • 7 Thanks
    Mike967angus
    • #6
    • 14th Feb 18, 8:20 PM
    • #6
    • 14th Feb 18, 8:20 PM
    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
    • By sheslookinhot 14th Feb 18, 8:23 PM
    • 1,120 Posts
    • 744 Thanks
    sheslookinhot
    • #7
    • 14th Feb 18, 8:23 PM
    • #7
    • 14th Feb 18, 8:23 PM
    If the insurance doesn't cover the value it is overpriced.
    Mortgage Free
    Planning for Retirement
    • force ten
    • By force ten 14th Feb 18, 10:53 PM
    • 1,697 Posts
    • 1,136 Thanks
    force ten
    • #8
    • 14th Feb 18, 10:53 PM
    • #8
    • 14th Feb 18, 10:53 PM
    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
    • By unholyangel 14th Feb 18, 11:08 PM
    • 12,286 Posts
    • 9,617 Thanks
    unholyangel
    • #9
    • 14th Feb 18, 11:08 PM
    • #9
    • 14th Feb 18, 11:08 PM
    If the insurance doesn't cover the value it is overpriced.
    Originally posted by sheslookinhot
    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).
    Money doesn't solve poverty.....it creates it.
    • Tom99
    • By Tom99 14th Feb 18, 11:20 PM
    • 2,068 Posts
    • 1,392 Thanks
    Tom99
    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
    • By AnotherJoe 15th Feb 18, 11:53 AM
    • 9,393 Posts
    • 10,377 Thanks
    AnotherJoe
    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
    Originally posted by Lunchmunch
    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.
    • Lunchmunch
    • By Lunchmunch 22nd Feb 18, 9:42 PM
    • 2 Posts
    • 1 Thanks
    Lunchmunch
    Thank you all for your level headed responses - I think I felt overwhelmed - its even put me off that brand of car!
    Back to the search...
    Thank you
    • BeenThroughItAll
    • By BeenThroughItAll 22nd Feb 18, 9:45 PM
    • 4,680 Posts
    • 4,092 Thanks
    BeenThroughItAll
    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.
    Originally posted by Tom99
    Cash offers won't excite the dealers, they make their money out of finance. They'll be quite happy for you to walk and go to buy one of the other imaginary cars you're going to look at.
    • Frozen_up_north
    • By Frozen_up_north 23rd Feb 18, 7:14 AM
    • 1,469 Posts
    • 712 Thanks
    Frozen_up_north
    Cash offers won't excite the dealers, they make their money out of finance. They'll be quite happy for you to walk and go to buy one of the other imaginary cars you're going to look at.
    Originally posted by BeenThroughItAll
    For several years I’ve been a cash buyer, bought 2 new and 2 demonstration cars for “cash” (debit card in their card reader). I don’t mess around with finance, nor do I fall for the dealers gap insurance scam, it might be the next “PPI” miss selling scam.

    At this time of year car sales are very sluggish, it’s a buyers market... anyone buying for “cash” has a lot of choice, especially those better value demonstration and similar low mileage cars that are less than a year old.
    • Tom99
    • By Tom99 23rd Feb 18, 7:31 AM
    • 2,068 Posts
    • 1,392 Thanks
    Tom99
    Cash offers won't excite the dealers, they make their money out of finance. They'll be quite happy for you to walk and go to buy one of the other imaginary cars you're going to look at.
    Originally posted by BeenThroughItAll
    I to have always paid cash new and used. If the dealer knows you are ready to buy there and then, they will be ready to negotiate, down to trying to get you to pay the road tax or tank of petrol.
    • Sea Shell
    • By Sea Shell 23rd Feb 18, 7:40 AM
    • 719 Posts
    • 1,008 Thanks
    Sea Shell
    As cash buyers, we do find it quite amusing that every salesman's first question seems to be "how much are you looking to spend per month?"

    When you say, "nothing, we're cash buyers"....they then push you specify a budget. So tempted to reply with..."Ah but you see, we COULD buy almost anything you have on sale...but what we want is Value for Money". Let the haggling begin!!!
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow "
    • davidwood681
    • By davidwood681 23rd Feb 18, 10:07 AM
    • 230 Posts
    • 714 Thanks
    davidwood681
    For several years I’ve been a cash buyer, bought 2 new and 2 demonstration cars for “cash” (debit card in their card reader). I don’t mess around with finance, nor do I fall for the dealers gap insurance scam, it might be the next “PPI” miss selling scam.

    At this time of year car sales are very sluggish, it’s a buyers market... anyone buying for “cash” has a lot of choice, especially those better value demonstration and similar low mileage cars that are less than a year old.
    Originally posted by Frozen_up_north
    Dealers don't care about February. They write it off and would rather sell more in March than meet targets in Feb
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

124Posts Today

1,918Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin