Gap Insurance

[almostVXRed]

Yeah I know, damn newbies LOL. Last question I promise I've also been offered GAP insurance. A £499 one of payment to guarantee in the event of a total loss to the vehicle the difference between any Insurance company payout and the purchase price for the car.
Seems expensive in the early months but looking 3 years down the line on a £30k motor then worth nearer £20k a guaranteed £30k back if the car was stolen or written off sounds appealing.

Again, anyone any opinions or personal experiance on this?

Edited by almostVXRed on Saturday 10th June 10:50

[phrich]

As long as the company making the offer is around in 3 years

[almostVXRed]

Mmmmm good point, I wonder if the dealer backs it in the event of the demise of the GAP insurer!

[BO55 VXR]

I took it out.. because

a) The car is very quick and even the best of us have "moments" - Just look on ebay, there's two wrecked cars already.
b) Any security measures on the car will deter the "handle fiddler" but if your car is WANTED, they will get it
c) There's no telling what stupidity other drivers will do and even if it is completely proven that it's their fault, their insurance will not pay out what YOU want.

£499 was a small price to pay on a £38K car

Just my £0.02's worth

[bennno]

Check your insurance policy, many such as mine do new for old in the first 12 months, so GAP is of no benefit if its a new car.

Other than this my policy has always been to buy the best priced car, that way you arent out of pocket if it gets written off or you decide to sell it.

I would think carefully about buying a new 6.0L VXR at 38k. There are several used ones around for sub £30k or you can buy an 04 VXR for £23k like I did. Either way you would reduce your maximum depreciation by 8k or 15k respectively.

Bennno

Edited by bennno on Saturday 10th June 11:29

[BO55 VXR]

bennno said:

I would think carefully about buying a new 6.0L VXR at 38k. There are several used ones around for sub £30k

I wish that was the case when I bought mine...

[almostVXRed]

I didn't fancy the initial hit on depreciation either so bought a fairly new but used car to avoid the nasty initial drive out the showroom drop!

[mose]

ONly GAP insurance I never accepted was on my M3 where they wanted just over £1300, ppffftttt yeah ok...."shove it".

I thought the £499 payment was very reasonable!

[v8 eol]

BO55 VXR said:

I took it out.. because

a) The car is very quick and even the best of us have "moments" - Just look on ebay, there's two wrecked cars already.
b) Any security measures on the car will deter the "handle fiddler" but if your car is WANTED, they will get it
c) There's no telling what stupidity other drivers will do and even if it is completely proven that it's their fault, their insurance will not pay out what YOU want.

£499 was a small price to pay on a £38K car

Just my £0.02's worth

I agreee, same reasons I took it out myself. The best bit is they pay up to the invoice value. I managed to get the alarm & tracker together with the road tax on the invoice so am covered up to £26,500 for a 04 VXR. Not as good value as a £38k car but at 1.8% of the purchace price I thought it was worth it.