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  • FIRST POST
    • shanklypuss
    • By shanklypuss 28th Mar 18, 5:54 PM
    • 8Posts
    • 1Thanks
    shanklypuss
    PCP and car write off
    • #1
    • 28th Mar 18, 5:54 PM
    PCP and car write off 28th Mar 18 at 5:54 PM
    Hi - this is my first post in a long time, so please be kind (hopefully this in in the right forum, too)

    I was caught in the middle of a three car 'shunting' accident yesterday and my car is likely to be written off. The driver at the back of the shunt has admitted liability - so I am claiming a courtesy car from their insurance for the time being.

    Today, I spoke with my GAP insurer to make a claim and I realised the three year GAP insurance ran out two weeks ago. This is all new to me and I am still a bit in shock, but what I am trying to understand is whether I will be out of pocket so far as the PCP goes.

    I owe just over £7k and the car (according to webuyanycar.com) is the same value. I am three years into a four year PCP.

    Can anyone tell me what I can do from here? Will the insurance negate the outstanding PCP (and final balloon payment) and leave me to start from scratch? Or will I need to pay out anything?

    So far, google has given me lots of advice on why to purchase GAP and PCP, but very little on what to do with both aspects when accidents happen.

    Any advice/ insight will be hugely appreciated
Page 1
    • wgl2014
    • By wgl2014 28th Mar 18, 6:48 PM
    • 751 Posts
    • 481 Thanks
    wgl2014
    • #2
    • 28th Mar 18, 6:48 PM
    • #2
    • 28th Mar 18, 6:48 PM
    The insurance will pay out their valuation on your car if it is a write off. If this covers the outstanding balance of the finance then no worries.
    As you are towards the end of the agreement the difference between the two values shouldn't be too much.
    I would suggest doing a bit more research on the value of your car so if the insurance comes back with a lower figure you have some evidence to argue with.
    • neilmcl
    • By neilmcl 28th Mar 18, 7:37 PM
    • 11,457 Posts
    • 8,250 Thanks
    neilmcl
    • #3
    • 28th Mar 18, 7:37 PM
    • #3
    • 28th Mar 18, 7:37 PM
    Why did you take out a 3 year GAP on a 4 year PCP?

    You need to get a settlement figure from the finance company and hope that your insurer gets near to covering this if they write off the car.

    Have you actually spoken to the finance co. and explained the situation?
    Last edited by neilmcl; 28-03-2018 at 7:40 PM.
    • Penelopa.Pitstop
    • By Penelopa.Pitstop 28th Mar 18, 8:48 PM
    • 331 Posts
    • 130 Thanks
    Penelopa.Pitstop
    • #4
    • 28th Mar 18, 8:48 PM
    • #4
    • 28th Mar 18, 8:48 PM
    Don't look at trade in price at WBAC, you would pay much more for the car if you were buying exactly the same one from retail. That's the amount you should aim for when getting paid by insurance company.

    • shanklypuss
    • By shanklypuss 28th Mar 18, 9:47 PM
    • 8 Posts
    • 1 Thanks
    shanklypuss
    • #5
    • 28th Mar 18, 9:47 PM
    • #5
    • 28th Mar 18, 9:47 PM
    Why did you take out a 3 year GAP on a 4 year PCP?
    Originally posted by neilmcl

    I said the same thing to the insurance firm today - when I bought the car, I was adamant that I needed the gap to cover the full payment term. Today, they told me they only offer three year deals - my scribbled notes on the paperwork at the time of sale say different... but my notes are clearly not legally binding. I have simply screwed up without realising. Gutted.
    • CardinalWolsey
    • By CardinalWolsey 29th Mar 18, 9:02 AM
    • 261 Posts
    • 252 Thanks
    CardinalWolsey
    • #6
    • 29th Mar 18, 9:02 AM
    • #6
    • 29th Mar 18, 9:02 AM
    I said the same thing to the insurance firm today - when I bought the car, I was adamant that I needed the gap to cover the full payment term
    Originally posted by shanklypuss
    I take it you bought the insurance directly, and did not take up the dealer on their offer of gap insurance?
    • shanklypuss
    • By shanklypuss 13th Apr 18, 4:42 PM
    • 8 Posts
    • 1 Thanks
    shanklypuss
    • #7
    • 13th Apr 18, 4:42 PM
    • #7
    • 13th Apr 18, 4:42 PM
    I take it you bought the insurance directly, and did not take up the dealer on their offer of gap insurance?
    Originally posted by CardinalWolsey
    I did it direct through the dealer
    • Nasqueron
    • By Nasqueron 13th Apr 18, 5:26 PM
    • 5,254 Posts
    • 3,186 Thanks
    Nasqueron
    • #8
    • 13th Apr 18, 5:26 PM
    • #8
    • 13th Apr 18, 5:26 PM
    For future reference, do it externally

    My dealer offered 3 year cover for £499, I got full replacement GAP cover for 4 years (deferred for 1 year of car being new so would be replaced by insurance) for about £250 or so. Car is 4 years old in December, I still have 20 months where, should the worst happen, I would get a brand new car to replace that
    • dacouch
    • By dacouch 13th Apr 18, 9:12 PM
    • 20,553 Posts
    • 12,733 Thanks
    dacouch
    • #9
    • 13th Apr 18, 9:12 PM
    • #9
    • 13th Apr 18, 9:12 PM
    You may have a complain against the dealer over the sale of the gap
    • k3lvc
    • By k3lvc 14th Apr 18, 11:11 AM
    • 2,340 Posts
    • 3,877 Thanks
    k3lvc
    You may have a complain against the dealer over the sale of the gap
    Originally posted by dacouch
    On what grounds ?
    • dacouch
    • By dacouch 14th Apr 18, 1:22 PM
    • 20,553 Posts
    • 12,733 Thanks
    dacouch
    On what grounds ?
    Originally posted by k3lvc
    Whether the policy was communicated as being for the full term.

    Or whether selling a 3 year policy if the dealer offered 4 year policies is appropriate.

    A lot will hinge on the paper work on both sides or lack of paper work
    • Ectophile
    • By Ectophile 14th Apr 18, 3:41 PM
    • 3,237 Posts
    • 2,090 Thanks
    Ectophile
    If the value of the car just before the accident is equal to the outstanding finance, then you no longer need GAP insurance.

    You just have to make sure the other party's insurance pay out the full value of a similar car, and not as little as they can get away with.

    That should leave your finance paid off. You can then go hunting for another car.
    If it sticks, force it.
    If it breaks, well it wasn't working right anyway.
    • JP1978
    • By JP1978 14th Apr 18, 5:39 PM
    • 429 Posts
    • 298 Thanks
    JP1978
    If the value of the car just before the accident is equal to the outstanding finance, then you no longer need GAP insurance.

    You just have to make sure the other party's insurance pay out the full value of a similar car, and not as little as they can get away with.

    That should leave your finance paid off. You can then go hunting for another car.
    Originally posted by Ectophile
    And as the end of the PCP term nears (that you are), the more chance of the payout been closer to the outstanding finance.
    • markudman
    • By markudman 14th Apr 18, 5:49 PM
    • 280 Posts
    • 161 Thanks
    markudman
    Hi WBAC prices are really bad your best bet is to go to auto trader they will give you trade and retail prices for your car. follow this link
    https://www.autotrader.co.uk/car-valuation
    We may not win by protesting, but if we donít protest we will lose.
    If we stand up to them, there is always a chance we will win.
    • shanklypuss
    • By shanklypuss 14th Apr 18, 8:46 PM
    • 8 Posts
    • 1 Thanks
    shanklypuss
    I want to say a big thank to you all for your comments and views on this. For anyone who picks up this link later, I have found out the residual value of the car when you are three years into a four year PCP is basically the same as the outstanding balance. The gap insurance would have been a benefit, but as I was planning to hand the car back the next year, it simply brought me a year ahead of plan.

    I also have been advised I'll receive a salvage payment (approx. £1000) for parts on top of the car value.

    WBAC offered £2k below what I was offered via the insurance (excluding the salvage payment)

    Thank you all again - you kept me sane!
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