[Jafrimania]

I spent the afternoon at a main dealer looking at a 10 month old used car that I was interested in buying.

We get down to the matter of money and I get wheeled in to the business managers office. He tries to sell me products that I don't want - including GAP insurance.

Surely if you take out a bank loan to buy a car then this insurance isn't necessary. The bank loan will reduce more quickly than the value of the car. If the car was a write-off then you would pay off the loan with the proceeds of your normal insurance and use the surplus and a new loan to buy another car.

Am I missing something?

[smudger]

Not sure, but a mate of mine had to take out extra insurance on his finance, as he bought the car on one f=of them £1 down deals.

The insurance company would not insure his car unless he had this Finance Insurance.

Their point being, that the loan money would still be payable, if the car was written off, that and the fact that the car loses value very quickly.

[wagolynn]

Originally Posted by Jafrimania

I spent the afternoon at a main dealer looking at a 10 month old used car that I was interested in buying.

We get down to the matter of money and I get wheeled in to the business managers office. He tries to sell me products that I don't want - including GAP insurance.

Surely if you take out a bank loan to buy a car then this insurance isn't necessary. The bank loan will reduce more quickly than the value of the car. If the car was a write-off then you would pay off the loan with the proceeds of your normal insurance and use the surplus and a new loan to buy another car.

Am I missing something?

Yup, the missing bit is the garage gets commission on the GAP insurance...