Afternoon all.

 

Due to collect my new (to me) Superb Sportline at some point in the next week or so, it's just gone to the body shop after someone dented the wing in their car park and then needs a service before I get it so could be longer.

 

I've taken it on a PCP deal and the dealer agreed to pay off the finance on my Volvo XC70 and take it off my hands but not as part of the new Skoda deal as I owed more on the finance than it was worth (high annual mileage devalued it rapidly and I paid over the odds for it in any case but it was the right car for us at the time) they just did it to help me get it off my driveway.

So, having signed all the finance paperwork, I found out on Friday that the dealership have cleared the finance on the Volvo in its entirety and given me an invoice for the shortfall. Now, this was what we agreed would happen so that's all well and good. Except... As we have no agreed handover date yet and they have paid Santander on my behalf, the GAP insurance for my existing car is also now cancelled and I could be waiting a week or more for the replacement (GAP insurance makes up the shortfall if the car is written off and you owe more on finance than the insurance company will pay you for it) Should anything happen to my Volvo in the meantime - I'm not intending for it to by the way but there would be a stunning irony if I got T-boned on my way to Sussex on Wednesday afternoon - then the insurance company will only pay out book value. If that is less than the dealership offered me for it then who fills that gap? As they cancelled the finance prior to having an agreed handover date (and in fact not knowing when they would have the Sportline back in their hands from the body shop - it may be weeks) I feel in a slightly weak position. If anything does happen, I am entirely liable for any shortfall which isn't something I'm entirely happy with and I had hoped they were a little more aware of this kind of thing before paying off someone else's finance.

 

Thoughts? Should I make a complaint about it? Am I making too much of it? Would any dealership have done this anyway without an agreed handover date? Does it sound like someone getting a hefty sale onto March's accounts (April next week so we could exchange next month so therefore next financial year)?

Why has the GAP insurance been cancelled?  Something you've done?  Or by virtue of the finance being paid off?  

 

I ask because I was under the impression that GAP insurance did more than just cover any potential shortfall between a w/o value and outstanding finance.  GAP insurance would also cover any difference between what I paid cash for a brand new car and an insurance pay out should it be written off on day 1 for example.  I think therefore the GAP insurance should not have been cancelled.  

 

Don't think you making too much of it.  There is a risk there no matter how small.  If the GAP insurance has been cancelled due to the finance being paid off in advance of your collection date, I would write to the dealer stating this, and that you any shortfall caused by early settlement is at their risk. 

 

EDIT:  PS, Enjoy the car.  Very nice drive in Sportline guise.  

Edited 27 March, 20179 yr by Hannibal

Gap insurance on the XC70 was tied to the finance so is now no longer there as it's function was only to fill the gap between an insurance valuation in the event of a write off and any further monies owed to the finance company.

 

I may construct a polite email in the morning to that effect as I have a round trip of about 350 miles ahead of me this week and if they can't get it to me by the middle of next week, another 300 miles next Weds/Thurs. More miles = more risk.

As I'm reading the OP, the dealer has paid you for the outgoing Ovlov. If so, then they're assuming any loss from your use of their property.