Buying a new car

[D P Dance]

I am in the process of buying a new car for cash from a main dealer. They insist that I go up there, (100 miles round trip), at least four days before I take deliver to sign some papers, (gap insurance?). They say that this is a recent requirement by the FCA,

I have contacted the FCA who know nothing about this, and I very much suspect that no such regulation exists. Does anyone know if ir does or not?

[nemesis45]

Re: Buying a new car

I am in the process of buying a new car for cash from a main dealer. They insist that I go up there, (100 miles round trip), at least four days before I take deliver to sign some papers, (gap insurance?). They say that this is a recent requirement by the FCA,

I have contacted the FCA who know nothing about this, and I very much suspect that no such regulation exists. Does anyone know if ir does or not?

I believe GAP insurance is to cover any short fall in a finance contract not for an outright cash purchase [MENTION=39710]des8[/MENTION] and or [MENTION=71570]R0b[/MENTION] may be able to help.

nem

[R0b]

Re: Buying a new car

You are not legally obligated to to take out any GAP insurance, so the dealer is lying and probably gets a commission from added it as a value added service. You could ask the dealer to point out specifically under what part of the FCA regulations that states consumers must take out GAP insurance, and i'll bet that they are not able to.

As Nem has said, it is a form of insurance that you can take out with new cars where it covers any total loss of the car or any meets any outstanding payments.

There are advantages and disadvantages to GAP insurance so you might want to consider it carefully. For example it may be beneficial if you are taking the finance over a long period of time such as 5 years, as it is hard to predict what might happen during that time, or if you are going to be entering into an agreement with a high interest rate which could potentially cause payment problems in the future, or if you have a large balloon payment at the end of the agreement (useful for conditional sale agreements but not hire purchase).

If you want GAP insurance, you may want to source it yourself as obtaining one from dealers may turn out more expensive.

[nemesis45]

Re: Buying a new car

Well said [MENTION=71570]R0b[/MENTION], dodgy dealer !!

nem

[des8]

Re: Buying a new car

As already mentioned< GAP insurance is not mandatory, and anyway why would FCA be involved in a transaction which does not involve finance through a third party?

"GAP" is designed to cover the difference between (if your vehicle is written off or stolen) what your regular insurers pays out and(in this case as you are a cash buyer) what you paid for the car.

As this is a new car, and you are paying cash, it is possibly not cover you require.
This is because, typically, comprehensive car policies offer brand new car replacement during the first twelve months of ownership.
However, do check your policy wording!!

[D P Dance]

Re: Buying a new car

I think I have called the dealers bluff on this, I am collecting the car tomorrow. I got an amazing deal, so good that a half an hour after I paid the deposit, they tried to cancel. First they said they were not allowed to sell it as it was under 6 months old.

Then they said they had made "an honest mistake" with the mileage, (750 instead of 11). I said that if a surgeon made an honest mistake and amputated the wrong leg he could be sued for millions.

When I threatened them with court for breach of contract , Loss of Bargain, Trade Descriptions Act, Autotrader T&C, SMMT Code of Practice, New Car Code, et al they changed their tune. It has taken me the whole day to sort out,

Thanks all for you input on Gap insurance, I shall not be buying it.