My wife had a pretty severe accident yesterday in her little two and a half year old SEAT Mii (it's probably her fault, but that's irrelevant) - basically hit in the side on a dual carriageway at about 30-40 mph, spun round, whacked again in the back and pushed into a skip lorry!   The damage to the wee car and the fact she walked out without anything other than a bad shaking up is a testament to the safe design of the VW Up/SEAT Mii/Skoda Citigo design - one of our deciding factors when we went for it.

Now, it is looking very likely the car may be a write-off.   My son told me to start trawling Autotrader/Webuyanycar.com etc and have a rough idea of a value in case the insurers start haggling a settlement figure.   Unfortunately, the SEAT models depreciate at a faster rate than any of the other VAG group marques and the value of her car seems to fall between £4,000 (worst) and £5,200 (best) - it was financed through SEAT Finance (the same company trades as SEAT Finance, VW Finance and Skoda Finance) on a PCP deal and the settlement figure is £5,735.00 so, even well into its PCP term, there is still a sizeable gap.   The GFV (Guaranteed Future Value) is £3,750.

Presumably, if the insurers settle, we are liable to stump up the full £5,735?    However, as the SEAT Mii proved itself as a safety cell, we will be looking to get another Mii or Citigo to replace it.   Do you think SEAT Finance would write the balance between the GFV and the settlement figure off if they are still going to be receiving a similar monthly payment from us for a new car or do we just cut our losses?

What would you do if it happened to you?

Sorry to hear about your crash, main thing is, you're both safe and in one piece.

 

Did you take out GAP insurance?

Just have the Insurance Company have you back in a like for like car.

Can the Finance Agreement not now end as the Finance Company get the settlement from the Insurance if the Vehicle is written off?

 

Start a new agreement on a new car at maybe less than you were paying, there are good offers out there.

 

http://briskoda.net/forums/topic/382545-62-plate-value-dropped-by-a-grand

Edited 28 January, 201610 yr by GoneOffskiroottoot

Sorry to hear your bad news, but it's great that the car proved to be tough and kept your wife safe

 

Gap would have been the answer, but it's such a gamble whether to take it or not. In recent years I always have, as I usually use PCPs and don't want the neg equity problem. My advice wouldn't be to either look around on the interweb for a great GAP deal, or do what I do and haggle at the dealers. I usually aim for 50% of the price they start with and suggest I would take GAP with my new car if they would discount the GAP by 50%. It rarely fails either, as I just put it to the dealer as a take it or leave it offer and the dealer get another GAP sale for their monthly targets.

Edited 28 January, 201610 yr by Lady Elanore

Ouch, but pleased the car did its job

 

Once the car is written off, the finance agreement becomes payable in full (including the balloon at the end) and sadly any shortfall will still be payable which is why GAP insurance  is so popular with PCP schemes.

Exactly as Manny says. You will need to push the insurance company as hard as possible, to get the best possible value.

 

Also worth a call to will be VW Financial Services - to talk through the process.

Sorry to hear of this. You will be liable for the difference between what the insurance payout and the 5735 owed to seat finance. Which is why you will need to push the insurance company as hard as you can to give you top dollar. Sadly there is no way Seat finance will agree to write off any shortfall owed, even if you do want to finance another car with them. They will want your agreement for the Mii paid off in full before considering lending you more money :-(

Thank you to all for your help.    Just to update you, the car was indeed written off.   The settlement figure is £5,700 and the insurance settled at £5,400 (originally trying their luck at £5100).   With a £250 excess on the insurance, that means we end up losing £550 which is better than I feared TBH!

We have always taken GAP insurance, but only for the first year, so now that we're off to Liverpool and Alex Lawrie Skoda today to pick up a Citigo Black Edition as a replacement, we have made sure we have GAP for 3 years on the new baby of the family!   Because of Alex Lawrie's pre-registered deal, the PCP on this car actually works out £30 a month cheaper so we will have recouped our loss before two years is up in theory.

It was very interesting that when I was trawling the internet and talking to various dealers about PCP deals, my wife only wanted an Up, Mii or Citigo.   No other car got a look in!   As far as she is concerned, that cheeky little car kept her from harm and that's why she wants another! 

So, we have learnt a lesson about Gap insurance, and another lesson about PCAP safety ratings!

Do NOT get the GAP insurance from the stealers! Get a quote from the chap who's a sponsor on here, it'll be a hell of a lot cheaper.

I buy GAP from the dealer, but you have to let them know that you want it for half price or you'll do it on line. I straight forwardly ask if they wold like a GAP to get their 'numbers up' and if so, I'll get one if it's half price. Never failed so far.

Pretty good result then, all things considered.