A couple of questions which i cant really find an answer thats helps me fully.

GAP insurance on a car on PCP makes sense doesnt?

I.e Potentailly i could own the car ahould i decided to pay the ballon at the end of the 3 years or so.... So should the worse happen i.e total loss it could have a negative effect on me finacally (i.e id be resonpsible for any short falls).

Now as from my understanding above, i was prepared to get a GAP cover.... untill the dealer told me its the best part of £350.... i found that hard to swollow and turned it down at the point of ordering....

So i thought id do a bit of research and shop around. Thanks to this site i came across Chris Knott ins.

Now thats thrown a spanner in the works for me as i done online qoute... and was qouted £85!

My question is why the big "Gap".... with out being Rude is their something the dealer offer in that cover Chris Knott cant or dont? Or are dealers seriously hoping people will just sign up with out looking?

The only real difference i see, is the dealers will potenatially cover the full period of PCP deal (42 Months)

Chris Knott is for 36 months.... but that doesnt justify the difference in my opinion..

I would say this wouldn't I but the dealers do tend to overcharge for the product by a significant margin. It means they can do better deals on the car sale and finance etc. because they'll make some up on the GAP.

The above but one posting does seem to be spot on, so consider this, when would you need to make use of the "gap filling" insurance - I'd guess the answer to that would be "within the first 36 months" - after that time the insurance valuation should be the same as the theoretical value.

 

Though, I can see a time when we could all be mugged into needing Gap, and soon after no doubt we'll need a gap filling Gap etc etc.

 

I paid up front for my wife's car, but still felt a bit concerned about what might be declared a shortfall in monies if we wrote off the car early in its life.

 

My take, and maybe that of others is, you are very "easy" on spending while buying a new car, so the dealers seem to be quite happy to save you a lot of inconvenience by offering you this extra essential service - and before you know anything it has cost you as much about 3 times what it costs on the open market.

 

Edit:- change that to "the above but one posting"

Edited 6 October, 20169 yr by rum4mo

I would say this wouldn't I but the dealers do tend to overcharge for the product by a significant margin. It means they can do better deals on the car sale and finance etc. because they'll make some up on the GAP.

Haha well yeah. But work with in a commercial dealer and have seen margins on vehicles... so its not hard to imagine a dealer over pricing. So that didnt suprise but it was the difference that stunned me.

£85 quid is easy to swollow if you dont need to use it... but £350 leaves a bitter taste.

Having read info on both products i think its a no brainer. Just stunned at such a difference.

Picking up my new 230 next week and I'll be looking at gap but I've noticed theres 2 versions 

 

 

One pays the difference and one pays the purchase price. Which one  is better for a new car ?

 

 

( I have Chris Knott Insurance as well )

When you say one pays the difference and one pays the purchase price - what do you mean? The Chris Knott GAP is a combination product so it pays the difference between your motor insurance payout and either your original purchase price (the Net Invoice Selling Price) or the outstanding Finance (Early Settlement figure) - whichever is the greater.

An example: You purchase a car for £25,000 on finance and it costs you £28,000 therefore. You write off the car after 2 years and the market value is £18,000 but you still owe £20,000 to the Finance Co. The GAP could pay the £2,000 difference but actually the gap to the purchase price is £7,000 so you'd get that instead. The car insurance pays the £18,000, the GAP pays the £7,000. You pay off the £20,000 debt and have £5,000 left as a deposit to start again on a new vehicle.

Hope that helps clarify it.

best,

Nick

Edited 6 October, 20169 yr by ChrisKnottIns

Picking up my new 230 next week and I'll be looking at gap but I've noticed theres 2 versions 

 

 

One pays the difference and one pays the purchase price. Which one  is better for a new car ?

 

 

( I have Chris Knott Insurance as well )

 

The 2 I have seen are

"return to invoice" so pays the gap between what the insurance gives you, and how much you paid for it. 

"Replacement insurance" so pays the gap betweem what the insurance gives you, and how much it would cost to buy a replacement.

 

The difference in the size of the "gap" for these 2 situations will probably be very similar in the first year of ownership, but if you're looking at years down the line and it would cost you 25 grand to buy a new, equivalent version of the car you paid 22k for 3 years ago, then the "replacement" will pay out 3k more - so you'd expect the premium to be more for this version.

 

GAPinsurance.co.uk also do a Briskoda members discount and post quite a lot in here.

 

http://www.gapinsurance.co.uk/invoice-gap-insurance.asp

http://www.gapinsurance.co.uk/replacement-gap-insurance.asp

Hi,

Just to let you know that we offer a product called Total Loss Protection. Whilst it's not exactly the same as your traditional GAP product we feel for some customers it can make a cost effective alternative.

https://www.adrianflux.co.uk/extras/total-loss/

Regards,

Dan.

When you say one pays the difference and one pays the purchase price - what do you mean? The Chris Knott GAP is a combination product so it pays the difference between your motor insurance payout and either your original purchase price (the Net Invoice Selling Price) or the outstanding Finance (Early Settlement figure) - whichever is the greater.

An example: You purchase a car for £25,000 on finance and it costs you £28,000 therefore. You write off the car after 2 years and the market value is £18,000 but you still owe £20,000 to the Finance Co. The GAP could pay the £2,000 difference but actually the gap to the purchase price is £7,000 so you'd get that instead. The car insurance pays the £18,000, the GAP pays the £7,000. You pay off the £20,000 debt and have £5,000 left as a deposit to start again on a new vehicle.

Hope that helps clarify it.

best,

Nick

 

Thanks for that Nick, I must have mis- read and thought the 2 options were not linked, I thought they were independent of each other.

 

Fully understand it now, again thanks...........

For an example of the difference between Invoice & Replacement GAP insurance please see here.

 

I've created the example using the figures already discussed above, namely:

• £25,000 vehicle purchase price
• Vehicle written off when
  • Worth £18,000
  • With £20,000 outstanding on finance

But I've also introduced the concept of the list price for the new equivalent vehicle having increased (the whole point of Replacement GAP insurance over Invoice GAP insurance) - in this case to £27,000.

 

It should be pretty self explanatory. If you have any questions, please ask.

 

Thanks

 

David