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the price my dealer quoted me was £440 for 4 years
 

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Yes my quote wa £380 for three years.
 

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Discussion Starter #25
dazmac said:
the price my dealer quoted me was £440 for 4 years
My 70% comment was aimed at Bubblewrap Boy - I hadn't spotted the change of user :)

It'd have been 70% saving for you dazmac (based on your dealer's quote of £440) assuming you could/did go for the same policy as him... in actual fact though based on his dealer's quote of £380, Bubblewrap Boy's saving was 62.6%.

Have you already bought a policy from us dazmac?
 

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went to 3 RR main dealers they all quoted me 850 pounds for gap one then said if i placed an order they could give it me for 300 pounds , but that now seems steep to what you can get on this forum
 

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tonymar said:
went to 3 RR main dealers they all quoted me 850 pounds for gap one then said if i placed an order they could give it me for 300 pounds , but that now seems steep to what you can get on this forum

Dealers are on commission. Just think if you originally bought it at £800 then £500 of that would just be pure profit for the dealer if their now saying they can do it for £300. At £300 there still making a lot of profit, never buy GAP insurance from the dealers!! Mine dealer quoted me £440, I refused to haggle with the dealer and got it from the site sponsor for £172 for three years of coverage. Happy with that!


Bri
 

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Discussion Starter #29
tonymar said:
went to 3 RR main dealers they all quoted me 850 pounds for gap one then said if i placed an order they could give it me for 300 pounds , but that now seems steep to what you can get on this forum
What you'll likely find too, is that their policy will only be Invoice GAP insurance and there's a good chance that on your final invoice they'd have shown the GAP Insurance at the full £850 and instead reduced the price of the vehicle by £550.

At first glance, you wouldn't think that there's an issue with that, except there is, because at the time of any claim on their Invoice GAP insurance policy that will only be paying the difference between your Motor Insurance payout and the original price that you bought the vehicle for AFTER discounts were applied and DOES NOT cover the cost of the GAP insurance policy itself, you then of course have an Invoice that shows the vehicle at a price that was reduced by £550. Putting it another way, you'd be £550 short at the time of claim
.

The moral of the story is... never buy GAP insurance from a Motor Dealer
. Well... except if you fancy playing the system to your benefit.

How? (I can hear you wondering
)

Well let's say you're buying a car for £30,000. They quote you for a THREE YEAR (normally) GAP insurance policy at £850 and you decline, so they then tell you they'll do it for £300. That's a total price of £30,300.

As above... you get your final invoice and it actually shows the cost of the car at £29,450 and the GAP insurance policy at £850. (That's still a total price of £30,300).

With the GAP insurance policy you'll have a cooling off period (normally 14-30 days) within which you can cancel the policy and (normally) get a full refund (though in some cases a small administration fee might apply). The dealer is NOT permitted to charge you a penalty for cancelling the GAP insurance policy and therefore NOT able to retrospectively put the price of the car up by £550. In which case (assuming you get a full refund, e.g. no admin fee applies - usual!) you'd receive an £850 refund of the GAP insurance premium.

You can then use that £850 to buy a GAP insurance policy elsewhere... by comparison, you could buy our superior Replacement GAP insurance policy, for a 3-year duration on a £30k vehicle with (for example) a £25,000 Claim Limit for £172.65 less a 10% forum discount bringing it to £155.38.

The net result (in this example), is that you'd have paid £29,605.38 for the car AND GAP insurance combined AND you'd have £694.62 cash in your "pocket". Further... the Replacement GAP insurance in the event of a claim (assuming your vehicle was bought brand new) would be paying you the difference between your Motor Insurance payout and what it would cost to buy another brand new version of the same (or nearest equivalent) vehicle at the time of claim - even if that cost more than the original £29,450 that you bought the car for first time around (subject to the policy Claim Limit).

More discount off the price of the car, a superior GAP insurance policy AND cash in your pocket... It can pay, literally, to speak to an "expert"
 

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Discussion Starter #30
hanmer said:
tonymar said:
went to 3 RR main dealers they all quoted me 850 pounds for gap one then said if i placed an order they could give it me for 300 pounds , but that now seems steep to what you can get on this forum

Dealers are on commission. Just think if you originally bought it at £800 then £500 of that would just be pure profit for the dealer if their now saying they can do it for £300. At £300 there still making a lot of profit, never buy GAP insurance from the dealers!! Mine dealer quoted me £440, I refused to haggle with the dealer and got it from the site sponsor for £172 for three years of coverage. Happy with that!


Bri
Bri... did you speak to us and claim your discount when you bought your policy? PM me your policy number please and I'll take a look.

David
 

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if i get it from them for 300 how do i know they will put it on the invoice at 850 , and knock it off the price of the car will they show me the invoice well before delivery , if i then cancel how do you know they will not then put the 550 back on the car?
 

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Discussion Starter #32
tonymar said:
if i get it from them for 300 how do i know they will put it on the invoice at 850 , and knock it off the price of the car will they show me the invoice well before delivery , if i then cancel how do you know they will not then put the 550 back on the car?
Until you see the final invoice, it's anyone's guess how they'll structure it. But what I've described in terms of them reducing the price of the car in order to account for a discounted/free GAP insurance policy is quite common.

However, until you sign that invoice, they're not going to permit you to take delivery of the vehicle... if they present you with an Invoice that is not structured as you would like it (or contains a charge for something that you don't require (the amount of dealers who just add GAP insurance to the invoice without ever discussing it and then use the customer's surprise at it being on there as a method of trying to sell it, is shocking)) you're not obliged to sign it and can ask for any offending items to be removed before you do sign it - all of which can of course be done there and then on the premises.

If however, your invoice was structured as I've suggested above and you wanted to play the system as I've described, you'd sign it, take delivery of the vehicle and then drive away. Then, within the cooling off period of the policy itself, you'd invoke your right to cancel the policy and receive a full (normally) refund of the premium you paid for it (as evidenced by the copy of the invoice that you'll have and the policy schedule) by following the cancellation instructions within the policy terms and conditions (you should, legally, have been provided with a copy of the terms and conditions for you to review before deciding whether you wish to purchase the policy or not), which, invariably, will be to put a cancellation request in writing to the Administrator of the policy, who then, after a brief delay, will send you a cheque in the post for the premium that you paid for the policy.

Thus, you'll have got to cancel the policy and receive a refund of the full policy premium that was declared on your invoice without having to involve the supplying dealer.

In any case though, even if you did the cancellation via the supplying dealer, they're not likely to have any contractually binding clause specifically stating that any individual level of discount was given solely as a result of the GAP insurance policy having been purchased and therefore they'd have no grounds to put the cost of the car back up by £550... plus, in terms of the cancellation of the GAP insurance policy itself, they are not (legally) permitted to charge you a penalty fee for cancelling the policy. They are only permitted to charge you a reasonable admin fee (though most don't within the cooling off period) to cover their administration time and effort in actually cancelling the policy. It is YOU that determines how reasonable that admin fee is and whether or not you feel it has crossed in to the realms of a "penalty fee" and your opinion on that front would give you reasonable grounds on which to formally complain and (subject to the sums involved) pursue it all the way to the Ombudsman if necessary.
 

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Hi GapInsurance

If my new car is purchased on a PCH lease, what is the best policy to buy ? also how do i obtain my 10% discount when generating a quote on your website ? do you have a discount code i can use.


Thanks
Tony
 

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Likewise. I have a 3 year lease deal on a Dynamic LUX HSE (Due 23rd Sept) with no option to buy.

Can you let me know which policy I need?
 

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Discussion Starter #36
Good morning!

OK so first of all, far too many people refer to a
PCP agreement incorrectly as a "Lease", so just to confirm, my advice
that follows is specifically in relation to a Lease (Contract Hire)
Agreement whereby you're going to pay X number of monthly rentals and
then come-what-may you're expected to hand the vehicle back at the end
(e.g. there's no contractual obligation for the finance house to permit
you the opportunity to purchase the vehicle).

This being the
case, strictly speaking this type of agreement would normally require a
"Contract Hire" GAP insurance policy. However we only offer two
products: "Invoice GAP insurance" and "Replacement GAP insurance".
But... our Invoice GAP insurance policy is actually a hybrid of
Finance/Invoice GAP Insurance and Contract Hire GAP insurance in so much
that in the wordings the policy states that in the event that you're
buying the vehicle (Cash / HP / PCP / Personal Loan etc) it works one
way, whilst if you're leasing the vehicle, it works another way - specifically, the policy will look to pay the difference between your Motor Insurance payout and the amount required to settle the remaining balance of the Lease Agreement.

Thus...
we can offer you our Invoice GAP insurance policy on the basis that
it's provided (in terms of a leased vehicle) on a Contract Hire GAP
insurance basis. We cannot offer you our Replacement GAP insurance
policy as this can only be provided to cover a vehicle that you are
purchasing.

Do you actually need GAP Insurance for a Lease Agreement?

There's one fundamental issue that you need to
explore though before you buy a GAP insurance policy for a leased
vehicle. This is that in some cases (more than you might imagine) you
wouldn't actually need GAP insurance at all.

Consider that in the
event your leased vehicle is declared a Total Loss (written off) by
your Motor Insurer, two things will happen:




  1. The finance house will calculate your settlement figure. This will be a combination of what they believe the car would be worth had it not been written off AND some or (usually) all (though it can vary considerably from one company to another) of the outstanding rentals under the lease agreement.
  2. Your Motor Insurer will calculate the sum of their Total Loss payout for that vehicle and that sum of money will be paid to the finance house.
The payout from the Motor Insurer will either be higher or lower than the settlement figure from the finance house. In the event that it's higher, some finance houses will keep the excess funds, others will pay it on to you. In the event that the payout from the Motor Insurer is lower than your settlement figure, in our experience the finance house will hold you liable for one of the following:
  1. ALL of the remaining balance.
  2. SOME of the remaining balance.
  3. NONE of the remaining balance.
If your lease agreement terms permit them to hold you liable for all of the remaining balance, this could easily be quite a sizeable sum of money should a write-off occur early in the agreement and it would be advisable to have GAP insurance to protect against this.

If your lease agreement terms are such that you'd only be liable for some of the remaining balance (I've seen liabilities such as 50% of the remaining balance down to as low as just a nominal £15 per monthly rental outstanding), you may or may not require GAP insurance subject to the sums involved.

Of course, by comparison, if your lease agreement terms are such that you'd simply be allowed to walk away with nothing else to pay because they take your Motor Insurance payout as full settlement, in theory you wouldn't need GAP insurance at all.

From my own personal experience, I wrote off a leased car in December last year. Technically my Motor Insurance payout was £3,800 short of the settlement figure calculated by the finance house (which ultimately, was LEX Leasing), but they permitted me to walk away without paying any of that and even refunded me the two rentals that I'd paid in the time it took to get from the incident itself and my Motor Insurer paying out.

Ideally, the terms of the lease agreement itself should identify your liability in the event of a Total Loss event but in my experience this isn't always the case and we've even had certain lease companies point-blank refuse to reveal their methodology to our clients prior to an actual Total Loss event occurring - (which always strikes me as incredibly unfair!).


In short then... IF you need GAP insurance, for a lease agreement, it's our Invoice GAP insurance policy that we can supply to you on a Contract Hire GAP insurance basis.

In order to gain the 10% discount as a forum member, you'll need to purchase the policy over the telephone with one of the team.
 

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An interesting read, my car is leased via Lex. I have called them, and all they can say is;

We will liaise with the ins co in the result of a total loss/stolen and if there is a shortfall in the settlement figure i will be liable.


So i guess i need GAP, at what level i don't know, as i don't think Lex are one of the company's that will insist i am liable for 100% of the remaining term.
 

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Thanks for the detail, extremely useful. I will contact my Lease Company tomorrow and see what they say. Believe it is Lex Autolease. If no cover is provided then a £25k claim limit should be ok I assume?
 

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Discussion Starter #40
TonyF55 said:
An interesting read, my car is leased via Lex. I have called them, and all they can say is;

We will liaise with the ins co in the result of a total loss/stolen and if there is a shortfall in the settlement figure i will be liable.


So i guess i need GAP, at what level i don't know, as i don't think Lex are one of the company's that will insist i am liable for 100% of the remaining term.
Sorry! I must have overlooked the notification for this post.

Have you sorted GAP Insurance yet TonyF55?
 
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