Dealer addons (protection this, insurance that...)

[Otispunkmeyer]

Father is buying a new car from Lexus. He's paying cash.

The dealer have offered, as per usual:

GAP - something like £130/yr for 3 years
Dashcam - 250 fitted
Paint Protection (Lexus ProTect) - 300 odd quid
Smart cover (dents and things) - 400 odd quid

I've told him:

GAP... probably sensible for the first 2-3 years? its 6months old, ex-demo so he's paying a big whack of tax that'll he'll not see back. I said to make sure its back to invoice GAP. Is this right?

Dashcam.... might as well, seems decent for the nextbase camera they are fitting, I think you'd struggle to DIY for much less and its less hassle. He's getting this fitted and I agree its a good purchase.

Lexus ProTect... I think they are doing this so it might be too late, but I've said you might as well get a few products from Halfords and do it yourself one afternoon. They're claiming whatever magic lotion they apply is guaranteed for 5years but how you prove that it is actually working/not working? I don't know. The first time they wash it (in fairy liquid no doubt) it'll have come off. They do the interior as well (though its leather anyway).

Smart cover...covers dents and scratches I think. Again I've said perhaps don't bother, ALA will do a similar cover for a good £100 less and to be honest, unless you're particularly crap at driving or really unlucky you'll not spend that amount in 3 years. In my own experience my car had some horrible bumper damage when I bought it. It was reflected in the price though and it cost £220 for a man in a van to repair it all on the driveway. He must have resprayed most of the front bumper and did an amazing job. So, again unless unlucky, I don't think I'd bother and although its not nice...its going to get stone chips and little scratches. You can't be chasing them all the time, life is too short.

Am I giving the right advice here?

[Fermit and Sexy Sarah]

For the leather use LTT Leather Protect (or Auto Protect, whichever is cheaper, it's the same stuff) it's the best stuff on the market, probably better than what they use, which likely won't work (I'm a Leather restorer of 7 years)

[WonkeyDonkey]

GAP can probably be found cheaper online.

I'd find out what dashcam model it is first, are they hard wiring it?

The rest I wouldn't bother with.

[Zetec-S]

I'd pretty much agree with you.

1. (back to invoice) GAP is (imo) a must have when spending a decent amount. £130/year is not bad for dealer rates, although I'm sure a few people will tell you to shop around and save a tenner or so.
2. Dashcam for £250 fully installed - again perhaps cheaper to shop around but like you say far less hassle if the dealer does it. Factor in shopping around for one and then finding the time to do it makes £250 seem like a bargain.
3. I've had it done in the past, but whether it's just snake oil is in the eye of the beholder.
4. Probably not worth it (check the small print for excesses or limits on what they'll fix). A man/van repair will probably be cheaper IF the worst happens.

[Otispunkmeyer]

WonkeyDonkey said:

GAP can probably be found cheaper online.

I'd find out what dashcam model it is first, are they hard wiring it?

The rest I wouldn't bother with.

I'll ask about the dash cam model. Its being hard wired and well hidden.

GAP, yes of course told him not to take the dealer offer as it'll be over priced. Started him off looking at ALA as a first base, its already coming out significantly cheaper.

[eybic]

Check the T's & C's of the paint protection guarantee, some state in small print that it has to be reapplied by a dealer every XYZ period of time so it may just be cheaper to get a valeter to apply something once a year.

[Otispunkmeyer]

Zetec-S said:

I'd pretty much agree with you.

1. (back to invoice) GAP is (imo) a must have when spending a decent amount. £130/year is not bad for dealer rates, although I'm sure a few people will tell you to shop around and save a tenner or so.
2. Dashcam for £250 fully installed - again perhaps cheaper to shop around but like you say far less hassle if the dealer does it. Factor in shopping around for one and then finding the time to do it makes £250 seem like a bargain.
3. I've had it done in the past, but whether it's just snake oil is in the eye of the beholder.
4. Probably not worth it (check the small print for excesses or limits on what they'll fix). A man/van repair will probably be cheaper IF the worst happens.

Oh yeah on 4. they don't cover wheels or areas round the door handles....i.e. the places most likely to see such damage. Most other panel scratches could be dealt with or at least lessened with a bit of DIY and the right products. Anything worse can be handled via the likes of chipsaway et al. As I said, they did my car (and it was a really bad gouge about 30 cm long) and for £220 its nigh on perfect (mazda soul red as well!). Like I say, I think you'd have to be terrible at parking or really unlucky to have to have that kind of work done every year. So on balance, not worth it.

[Sheepshanks]

Otispunkmeyer said:

GAP... probably sensible for the first 2-3 years? its 6months old, ex-demo so he's paying a big whack of tax that'll he'll not see back. I said to make sure its back to invoice GAP. Is this right?

Touch wood - I've never done it - even on new. It's pretty cheap now though, and obviously if you need to claim that you''ll thinks it's marvellous. However the reason for the low cost is the claims ratio is very low.

On new you can get vehicle replacement GAP but I guess on used RTI is probably the best,


Off topic: What's the "big whack of tax"? There's no separate VAT on used cars.

[Otispunkmeyer]

Sheepshanks said:

Otispunkmeyer said:

GAP... probably sensible for the first 2-3 years? its 6months old, ex-demo so he's paying a big whack of tax that'll he'll not see back. I said to make sure its back to invoice GAP. Is this right?

Touch wood - I've never done it - even on new. It's pretty cheap now though, and obviously if you need to claim that you''ll thinks it's marvellous. However the reason for the low cost is the claims ratio is very low.

On new you can get vehicle replacement GAP but I guess on used RTI is probably the best,


Off topic: What's the "big whack of tax"? There's no separate VAT on used cars.

As I understood it this is how it works:

On a normal used car, that has been owned by a private individual, the VAT is charged on a portion of the dealer profit. The punter never sees this itemised, so doesn't really matter.

On an ex-demo that's been bought through the business and has had the VAT claimed back on it. Then when the car is sold on again, the VAT is reapplied to the selling price as the car is still VAT qualifying. Apparently, I read that smaller chauffeur companies are typical customers of these cars as they can then also claim the VAT back and get a loaded, lightly used nearly new car. But as my Dad is just a private buyer, he pays the VAT on the window price.

The issue is, that the VAT has been shown on the invoice breakdown. If they'd have just put the price on, it wouldn't have been brought up. The price is the price. Similar cars are priced similarly so there is no fast ones being pulled. Its just accounting. My thoughts were that the insurance company paying out in the event of a write off would say the car is worth x (where x is the ex VAT value as a maximum? and so GAP would probably be a not too shabby idea if its going to make you whole to the invoice total)

Meh, I think that is how it works. Maybe I am getting my thinking muddled. If anyone knows better then please let me know! Either way, he wants that car, it costs x amount of money, other similar cars cost the same so pays yer money, takes yer choice.

Edited by Otispunkmeyer on Wednesday 2nd January 14:39

[Sheepshanks]

Otispunkmeyer said:

My thoughts were that the insurance company paying out in the even of a write off would say the car is worth x (where x is the ex VAT value as a maximum?)

I can't imagine that would happen. It might even be better for the insurance company is there's an itemised VAT invoice - a bus company just paid out for scuffing my wife's car. They offered a cash settlement but it was less VAT unless we produced a VAT invoice for the repair so they could claim the VAT back.