Gap Insurance.

[Alex1975]

Did you miss the part he said it's available elsewhere?

Look, its a scam, the first most people will ever hear about it is from their car dealer, they will either take it off the car dealer or not at all and they will only take it because they have been scared into it. Insurance to cover what your insurance does not... I mean come on... its hilarious!

 

[Smiffy]

Look, its a scam, the first most people will ever hear about it is from their car dealer, they will either take it off the car dealer or not at all and they will only take it because they have been scared into it.

You also missed the part where I said we weren't allowed to recommend it, or "hard sell" it.
We just mention it.
If a customer wants to buy it that is entirely up to them.
I am a salesman, and I sell things, GAP insurance being one of them.
What's the option? Give it away free?
Go buy a new car for £30k and write it off or have it stolen two years down the line.
When your insurance company offer you £15k, tell me GAP is a scam.
Until then, I'd say nowt.

 

[Smiffy]

Of course not, I am a finance broker

So you work for love?

 

[Alex1975]

You also missed the part where I said we weren't allowed to recommend it, or "hard sell" it.
We just mention it.
If a customer wants to buy it that is entirely up to them.
I am a salesman, and I sell things, GAP insurance being one of them.
What's the option? Give it away free?
Go buy a new car for £30k and write it off or have it stolen two years down the line.
When your insurance company offer you £15k, tell me GAP is a scam.
Until then, I'd say nowt.

lol

 

[Coffey]

You also missed the part where I said we weren't allowed to recommend it, or "hard sell" it.
We just mention it.
If a customer wants to buy it that is entirely up to them.
I am a salesman, and I sell things, GAP insurance being one of them.
What's the option? Give it away free?
Go buy a new car for £30k and write it off or have it stolen two years down the line.
When your insurance company offer you £15k, tell me GAP is a scam.
Until then, I'd say nowt.

I have to say that I think I was hard sold it. I was told that 'They wouldn't let me walk out without it' and 'It would be a big mistake not to take it' and more things a long those lines. Now this was my first proper car I was buying and I think they knew that.

But these are the lessons that you learn and will know for next time that it is available at other places and cheaper. I think I would still take it now as wouldn't want a big bill to pay off the remainder of the finance.

 

[Smiffy]

I have to say that I think I was hard sold it. I was told that 'They wouldn't let me walk out without it' and 'It would be a big mistake not to take it' and more things a long those lines.

If you were categorically told that then that could be classed as a "miss sell" under FCA regulations.

 

[Smiffy]

lol

Why the "lol"???
You think it is a scam, I'm telling you it's not.
Nowhere if my responses have I said you have to buy it from the dealer.
You have a choice whether to go for it or not.
How about the case I mentioned above about the elderly couple?
How do you think they felt when they got £8,500.00 back instead of £3,500.00???

 

[Twire]

If I wrote my car off, where would the insurance company get my cars valuation from. I always assumed it was market value.

 

[Alex1975]

Why the "lol"???
You think it is a scam, I'm telling you it's not.
Nowhere if my responses have I said you have to buy it from the dealer.
You have a choice whether to go for it or not.
How about the case I mentioned above about the elderly couple?
How do you think they felt when they got £8,500.00 back instead of £3,500.00???

I sell finance, I don't sell cars as an add on, I just sell my core product. Why would you even offer it, your car people!

If you are so passive in your selling of it, why so defensive now?

Cars lose value over time, especially from new via a dealer. I think your strong defence of this scam is a bad look for you.

 

[Smiffy]

I sell finance, I don't sell cars as an add on, I just sell my core product. Why would you even offer it, your car people!

If you are so passive in your selling of it, why so defensive now?

Cars lose value over time, especially from new via a dealer. I think your strong defence of this scam is a bad look for you.

Being in finance, you must be quite intelligent.
Why are you talking such a load of bollocks????

 

[Val]

I sell finance, I don't sell cars as an add on, I just sell my core product. Why would you even offer it, your car people!

If you are so passive in your selling of it, why so defensive now?

Cars lose value over time, especially from new via a dealer. I think your strong defence of this scam is a bad look for you.

Can you explain why you think it's a scam?

I'll add that finance left on cars doesn't come down with your payments as quickly as a car depreciates therefore unless you have hard cash to pay any potential shortfall in the even of a car write off then GAP is a good idea and not a scam.

 

[Smiffy]

If I wrote my car off, where would the insurance company get my cars valuation from. I always assumed it was market value.

They have access to online price guides and auction prices etc.
They "usually" go somewhere between trade and retail on their valuations.

 

[Smiffy]

Cars lose value over time, especially from new via a dealer.

Exactly!
So your £25k BMW will be worth £10k in 3 years time.
If you could cover that £15k loss for the equivalent of £100.00 per annum would you not consider it?
It doesn't take much financial sense to work out that is not a scam.
Now if the GAP company didn't pay out, yes that's a scam.

 

[Deleted member 15344]

Look, its a scam, the first most people will ever hear about it is from their car dealer, they will either take it off the car dealer or not at all and they will only take it because they have been scared into it. Insurance to cover what your insurance does not... I mean come on... its hilarious!

Sorry cant see how it's a scam when it helped me cover the gap between the money the insurance were going to pay out and how much I still owed on the finance. Every time I have asked for it as opposed to it being a hard sell

 

[Twire]

They have access to online price guides and auction prices etc.
They "usually" go somewhere between trade and retail on their valuations.

OK that's what I thought.

So unless the GAP insurance pays out new for old, or I have my car on finance the decision to have GAP would be marginal for me.

I was asked if I would like it when I bought my last car, along with wheel and tyre insurance, and lifeshine, but decided against it as it was the best part of a grand extra.

 

[Alex1975]

Fully comprehensive car insurance from a quality provider will replace your car in the first two years for a new car of the same spec, after that they will provide cover for an equivalent vehicle.

 

[Deleted member 15344]

Fully comprehensive car insurance from a quality provider will replace your car in the first two years for a new car of the same spec, after that they will provide cover for an equivalent vehicle.

They didn't replace mine - gave me the evaluation they were willing to give for the car and then the gap insurance made up the difference to cover the finance. That was Admiral. So for an extra £100 a year it saved me having to pay off £2000 of finance

 

[Deleted member 18588]

after that they will provide cover for an equivalent vehicle.

The value of which is likely to be significantly less than the outstanding finance. Hence Gap ​insurance. Also I think you may find that "like for like" replacement will only be in the first six to twelve months.

 

[Alex1975]

The value of which is likely to be significantly less than the outstanding finance. Hence Gap ​insurance. Also I think you may find that "like for like" replacement will only be in the first six to twelve months.

Yes you will still have outstanding finance but you would have if the vehicle was not written off or stolen so nothing has changed. You have a car worth the same second hand price and x payments left to pay.

 

[Deleted member 15344]

Yes you will still have outstanding finance but you would have if the vehicle was not written off or stolen so nothing has changed. You have a car worth the same second hand price and x payments left to pay.

So what happens when the insurance company don't replace like for like or pay out the full amount to cover the finance ?