[Closed] GAP Insurance - 8 month old car

I wouldnt pay for the autoglym and also get your GAP through ALA, don't pay dealer prices.

Definitely take GAP on such a new car, the difference between what you pay and what the insurance will give you if you smash it could be considerable.

As above, don't bother with the treatment but get the gap.

Get some quotes before going to the dealer so you know how much it 'really' costs.

My mum had her less than 12 months old A4 estate written off and the GAP difference was about 8K, so well worth the outlay

Yes but not through the dealer, at that age there’s a lot of scope for a shortfall in the event of a total loss.

Thanks, I had seen ALA for GAP insurance. Will probably go for it for piece of mind

Why would you not pay for the paint and interior treatment? (I expected that response BTW)

Would you get this for a car a few years old out of interest

Also lookif for the wife as she has a new car we own outright but I can't work our which of the two polices is the best the cheapest looks better with no finance owing but I'm not sure

It’s weighing up risk v cost.

Only you know the answer to that.

Shouldnt be too expensive in reality

Would it be advisable to take out GAP insurance when buying a car that’s 8 months old? Only optional extra taken would be a paint/fabric treatment*

It would be a cash purchase, funded by deposit (1/3 value) and personal loan (2/3 value).

No,

Only based on what you've typed - 'Gap insurance' should in theory only cover the cost of any shortfall between your insurance payout and any outstanding finance secured on the vehicle - so there no no instances when the cover would do anything for you as you've not financed the car - you've taken a personal loan.

However, and only because I don't want to sound like a pedantic ****er,  there are lots of types of insurance sold under the 'GAP' catch-all title, but you need to know what you're buying - RTI or (return to invoice) cover I used to sell did just that - it covered the difference between any insurance payout (write off only of course) and the original cost of the vehicle (returning the customer to the full invoice value, hence the name) it's quite rare these days.

IF you find a GAP product that covers you for the short-fall on a personal loan I still wouldn't bother, with a 33% deposit on a 8 month old car, I don't see the value every dropping below the settlement figure.

I sold GAP / RTI products for 10 years or more.

P-Jay, that's what I understand GAP insurance to be for, hence querying whether I need it. The chart below highlights why you need GAP insurance for a new car on finance. The blue line shows the market value (and the depreciation) and the red line shows you paying off regular amounts over 3 years. GAP insurance covers you for the grey bit.

An example from the chart: If you write off your car at 2 years old and the insurance company pays out £17500, you actually owe the finance company £20000. GAP insurance would cover the £2500 shortfall

Get other quotes for both "extras", there is the possibility that the seller uses a third-party AutoGlym-ist to fulfill the warranty Lifeshine link

Context. P-Jay posted while I was typing: GAP insurance is only worthwhile if the car is written-off/total loss and how often does that happen?

"It’s weighing up risk v cost.

Only you know the answer to that."

Ask about the lfeshine in any car detailing forum and you'll be told it's about £20 if sealant and such, which doesn't list more then a few months even when properly applied and looked after, in all likelihood it will be badly applied and hence have very little life.  The guarentee will have more holes and getouts than cover.  Save your money and find a local detailer, get the car fully decontaminated and sealed.

P-Jay, that’s what I understand GAP insurance to be for, hence querying whether I need it.

The point is, you're paying cash for the car, not financing it, so there is no GAP (in the tightly defined terms of the products you can actually buy)

I bought a brand new car just under a year ago and have just bought 3 years GAP insurance from Ala GAP for £185. My car insurance would pay for a new car only if it was a total loss in the first year.

Finance is all paid up but the reason I got the GAP was a guy at work had the same model nicked recently(Focus ST)

I also paid a local detailer to apply a ceramic coating and protect the interior. Was quite expensive but the dealers prices are pretty high as well. My guy took 2 days to do the car.

@dmorts

Viz the Graph - yeah thats' the sort of calc I used to do - as someone else said above most car insurance actually provides 'new for old' in the first year, but only if you're the first owner.

The depreciation graph is way off on a new car, it's nowhere near that smooth - there's a 15% drop on day one for example.

Yours would be smoother as you've let someone else take the initial drop from new car to used car - plus with your 33% deposit you're always going to be in equity.

Bust mostly it's the personal loan thing - sorry GAP doesn't apply here and anyone who's trying to sell it to you needs a boot up the arse.

I have a policy with ALA , thankfully never needed to use it . Cost me £110 for a 2 year policy on a £40k car ( new - return to invoice) . For the piece of mind it was worth it for me .

Big thread here on Pistonheads , including a discount code for ALA “PISTON12” . Very helpful service and don’t mess you around, give honest advice and assistance .

By all means have the fabric protection done. But by an indipendent elsewhere. It’s cheap stuff and the dealer makes a huge mark up.

Get the Gap insurance (from ALA, not the dealer), but only if potentially there is a 'gap' to fill.  Worth it for a new car.

Don't bother with the paint/interior protection from the dealer.  It's purely a way for them to make money, with a ludicrous mark-up.  If you think it is worth it (....possibly....if you are keeping the car long term) an independent, or even doing it yourself (if you are handy enough), would probably be a better bet.  Most dealers will get the work experience boy/junior apprentice to apply it.