PCP - Insurance & GAP

[handbraketurn]

Afternoon All,

Just been approved by BMW for PCP.

Got a 35% discount on a 3-month-old demonstrator, it's a 53k car (in theory). Although I'm expecting it to lose most of it's remaining value on Saturday when I drive it out of the showroom.

Given discount and fact new model out next year, expecting residuals to take a pretty big hit over the whole deal.

Replacement GAP the best option?

Secondly, is it best to take out for the entire term of the PCP (48 months) or just 36 on basis that most of the depreciation would be taken out in 3 years?

Advice very much appreciated.

Cheers,

HBT

[Wooda80]

Assuming we are talking about a Return to Invoice Price policy, then for the difference in cost of the premium you'd be kicking yourself if something happened to the car in month 37 wouldn't you?

Best is to take out a policy either for the term of the finance agreement or the length of time that you will keep the car.

Some companies offer a pro rata refund if you sell the car ( and therefore terminate the policy ) earlier.

Before anyone else jumps in, you don't have to buy it from the dealer. Policies are widely available with widely differing costs and different Ts & Cs

If you have only put in a small deposit and are therefore considering a Finance Shortfall policy to cover any negative equity, then there is an argument to say that any neg eq may have evaporated by the final year, but who can say for certain. Again for the difference in premium why risk it.

[TXG399]

I always suggest getting GAP for the full duration of the finance agreement as a minimum.

Dealer GAP is very expensive. I would strongly suggest getting other quotes. I had 5 year RTI GAP on my SLK55 with ALA for £200. No brainer in my opinion at that price.

[handbraketurn]

Thanks for replies - taking out for full length of the agreement is best option, thought so, but appreciate confirmation.

Main question was, which GAP to go for.

Return to invoice back to what I actually paid for the car or Vehical replacement.

The car's list price new is £52k, it's a 3 months demonstrator and the invoice was 35% discount from there.

Thanks again for the replies.

[Funk]

I also took mine with ALA.

[AlwynMike]

I went for full replacement over 4 years (no finance).
Additional costs minimal for £47k car.

totallossgap

(BMW) Salesman did ask if I wanted quote "the world's most expensive GAP insurance". I declined politely.

[handbraketurn]

AlwynMike said:

I went for full replacement over 4 years (no finance).
Additional costs minimal for £47k car.

totallossgap

(BMW) Salesman did ask if I wanted quote "the world's most expensive GAP insurance". I declined politely.

This is what I did in the end, £245 vs 309 dor 4 years, seemed like a no-brainer. Went with ALA.