Dealer Add-Ons

[Zod]

michael gould said:

well...I’ve never had finance on a car so have never needed gap insurance.......some people just like to insure for all possibilities.....I am happy to take on some of the risk myself.......horses for courses......glad that you negotiated a better deal with the insurance company ....90% of people just accept the first offer

It's not to deal with finance! It's to give you back the amount you paid for the car.

[stanwan]

AMDBSNick said:

You don't have to have finance to have gap

Indeed. I took a 5 year gap insurance to account for shortfall in value from the insurance payout. In the first year , the insurer pays out 100% value to get you in a new car, the GAP kicks in the following years providing a bridging payment.

I guess I wanted the reassurance of a new-for-old policy......


Cos me around £500 for five years of cover

[michael gould]

AMDBSNick said:

michael gould said:

well...I’ve never had finance on a car so have never needed gap insurance

You don't have to have finance to have gap

ok ok .....I have never done a deal on a car where the gap between what i paid and what an insurance company might offer me (in the event of a total loss) requires me to buy gap insurance. in fact I made a profit on both my previous Aston Martins when I subsequently sold them

[v8woollie]

michael gould said:

ok ok .....I have never done a deal on a car where the gap between what i paid and what an insurance company might offer me (in the event of a total loss) requires me to buy gap insurance. in fact I made a profit on both my previous Aston Martins when I subsequently sold them

I guess you are unique in that you are always buying cars at trade book price rather than retail price, because if you paid retail price then you immediately have a gap between the book price (what you insurer will pay out on a total loss claim) and retail price (what you originally paid for the car).

If you have a write off, you would get market value paid out from your insurer, i.e. what a dealer would pay to buy a car in, not what you would pay to replace the car. The GAP insurance gaurantees the difference between what you get from the insurer and what you paid for your car. In many cases that can be quite substantial. And to be honest, many of us are not so poor that we cannot afford £500 for a five year GAP policy

I guess the only exception is where you buy privately and the seller sells at book price. No need for GAP there..

Now you may say that you don't have accidents that result in a write off so you don't need GAP insurance. Fair enough. I would also suggest you don't buy home and contents insurance as you will never be burgled and you won't have a fire in the home.

Edited by v8woollie on Thursday 11th October 12:12

Edited by v8woollie on Thursday 11th October 12:12

[michael gould]

v8woollie said:

michael gould said:

ok ok .....I have never done a deal on a car where the gap between what i paid and what an insurance company might offer me (in the event of a total loss) requires me to buy gap insurance. in fact I made a profit on both my previous Aston Martins when I subsequently sold them

I guess you are unique in that you are always buying cars at trade book price rather than retail price, because if you paid retail price then you immediately have a gap between the book price (what you insurer will pay out on a total loss claim) and retail price (what you originally paid for the car).

If you have a write off, you would get market value paid out from your insurer, i.e. what a dealer would pay to buy a car in, not what you would pay to replace the car. The GAP insurance gaurantees the difference between what you get from the insurer and what you paid for your car. In many cases that can be quite substantial. And to be honest, many of us are not so poor that we cannot afford £500 for a five year GAP policy

I guess the only exception is where you buy privately and the seller sells at book price. No need for GAP there..

Now you may say that you don't have accidents that result in a write off so you don't need GAP insurance. Fair enough. I would also suggest you don't buy home and contents insurance as you will never be burgled and you won't have a fire in the home.

Edited by v8woollie on Thursday 11th October 12:12

Edited by v8woollie on Thursday 11th October 12:12

the house insurance is a poor example.....I’m not suggesting you have no car insurance or no house insurance, I have car insurance partly in case I have an accident but I also have a £1000 excess as I’m prepared to take some of the risk.......I understand that some people want to insure against all risk and, if they buy these sort of policies through the supplying dealer they will be paying 30 to 50% too much......dealers will often make more money out of finance and other financial products like gap insurance than on the actual car.

[whoami]

michael gould said:

the house insurance is a poor example.....I’m not suggesting you have no car insurance or no house insurance, I have car insurance partly in case I have an accident but I also have a £1000 excess as I’m prepared to take some of the risk.......I understand that some people want to insure against all risk and, if they buy these sort of policies through the supplying dealer they will be paying 30 to 50% too much......dealers will often make more money out of finance and other financial products like gap insurance than on the actual car.

A minute ago you didn't even know what GAP insurace was for...

[v8woollie]

michael gould said:

the house insurance is a poor example.....I’m not suggesting you have no car insurance or no house insurance, I have car insurance partly in case I have an accident but I also have a £1000 excess as I’m prepared to take some of the risk.......I understand that some people want to insure against all risk and, if they buy these sort of policies through the supplying dealer they will be paying 30 to 50% too much......dealers will often make more money out of finance and other financial products like gap insurance than on the actual car.

On that we agree. Don't buy dealer supplied polcies as there are always cheaper and as good if not better alternatives.

[Zod]

So you're going to make a profit on that DB9, Michael?

[whoami]

Zod said:

So you're going to make a profit on that DB9, Michael?

[michael gould]

Zod said:

So you're going to make a profit on that DB9, Michael?

i wish...... but i recon its only costing me 5k/ year in depreciation which aint bad (about the same as a new BMW320i).....and the car has been faultless

[yeti]

stanwan said:

A standard V8/Db9 alloy comes in at around £350 from what I recall.

With the greatest of respect, only an idiot would pay that. I couldn't sell 4 perfect 06 DB9 wheels for £200 :rolleyes

[michael gould]

whoami said:

michael gould said:

the house insurance is a poor example.....I’m not suggesting you have no car insurance or no house insurance, I have car insurance partly in case I have an accident but I also have a £1000 excess as I’m prepared to take some of the risk.......I understand that some people want to insure against all risk and, if they buy these sort of policies through the supplying dealer they will be paying 30 to 50% too much......dealers will often make more money out of finance and other financial products like gap insurance than on the actual car.

A minute ago you didn't even know what GAP insurace was for...

Gap insurance fills the profit gap between the lower and upper estimate of what the dealer would like to make on any deal. It’s not for the financially astute

[v8woollie]

michael gould said:

Gap insurance fills the profit gap between the lower and upper estimate of what the dealer would like to make on any deal. It’s not for the financially astute

Oose but no cigar. GAP insurance fills the gap between the ever decreasing blue book value of a car and what you actually paid for it. Over time it becomes of more value.

You really should stick to wine and not debate subjects of which you have little apparent knowledge

[sukh_m]

michael gould said:

Gap insurance fills the profit gap between the lower and upper estimate of what the dealer would like to make on any deal. It’s not for the financially astute

I disagree. If you bought an aston brand new at 150k for example, you might lose 40k in 1 year so then it would become worth it for the sake of a few hundred quid

[v8woollie]

sukh_m said:

I disagree. If you bought an aston brand new at 150k for example, you might lose 40k in 1 year so then it would become worth it for the sake of a few hundred quid

We are obviously the 'poor' not 'financially astute' people. I think £40k is a couple of bottles of wine for the more financially astute Mr Gould

[stanwan]

yeti said:

stanwan said:

A standard V8/Db9 alloy comes in at around £350 from what I recall.

With the greatest of respect, only an idiot would pay that. I couldn't sell 4 perfect 06 DB9 wheels for £200 :rolleyes

It was the list price paid by my Insurers for the rear wheel. The front is a little less. It was a while ago but two new wheels and tyres came to around £1100 claim. Must remember not to take an Aston throug the Hardknott and Wrynose passes in Cumbria....

[michael gould]

sukh_m said:

michael gould said:

Gap insurance fills the profit gap between the lower and upper estimate of what the dealer would like to make on any deal. It’s not for the financially astute

I disagree. If you bought an aston brand new at 150k for example, you might lose 40k in 1 year so then it would become worth it for the sake of a few hundred quid

I wouldn't be so stupid (or rich) to buy a new car and drop 40k in year 1 ......but im very happy that people do buy new cars

[sukh_m]

michael gould said:

I wouldn't be so stupid (or rich) to buy a new car and drop 40k in year 1 ......but im very happy that people do buy new cars

How did I know that one was coming?

I'm the same, why take the hit when someone else can

[michael gould]

sukh_m said:

michael gould said:

I wouldn't be so stupid (or rich) to buy a new car and drop 40k in year 1 ......but im very happy that people do buy new cars

How did I know that one was coming?

I'm the same, why take the hit when someone else can

We are agreed on that one......I don’t like all these financial products that dealers try to flog to people these days......they may have a place for some people but the fact the dealers are making 50% profit on some products tells me something

[sukh_m]

michael gould said:

We are agreed on that one......I don’t like all these financial products that dealers try to flog to people these days......they may have a place for some people but the fact the dealers are making 50% profit on some products tells me something

Put it this way the tyre cover he quoted me 645, another PH member got the same product at 245!

Like the guys said earlier, if you do want a policy go elsewhere