Car Finance Gap Insurance
Be Prepared - When Buying a New Car
Before you ever make it to the car dealers' showroom, make sure that you do your research first. The time spent now may well pay dividends for you in the future.
1) Do you really need a new car?
New cars depreciate as soon as you have driven off the forecourt. Can you afford the drop in value, particularly if you usually change cars frequently. No one wants to lose a few thousand over 12 months, but this is exactly what could happen if you buy a new car. Maybe consider buying a second-hand car where someone else has already bore the brunt of the car's first year depreciation. Used cars can often come with a myriad of features that will satisfy your wishes, and still leave you with money in your pocket.
What about my car insurance?
If you have your mind on a particular new car that you have spotted out and about, it may be worth asking your insurance company how much it is going to cost you to insure. You may get a nasty surprise. You could find that the new car is several insurance groups higher than the car you have now. Hidden costs like this may be avoided if you know the cost before you make your decision.
What about Gap Insurance & Car Loan Insurance?
The web site you are looking at now will readily allow you to compare alternative cover for gap insurance. Be aware that the car salesman will be looking to quietly add on his arranged insurance cover. Without a bit of research (click the links on this page) you will not know whether you might obtain gap insurance more cheaply elsewhere. There's no compulsion to take the dealer's gap insurance. Why not shop around and make your own arrangements.
Similarly, insurance to cover your car loan in case of accident, sickness or redundancy may also be offered by the new car salesman. Again, shop around and compare Loan Insurance rates.
Don't concentrate on the cost-per-week.
New cars can appear to be cheap when expressed in terms of finance payments on a weekly basis. You need to sit down coolly and to work out just how much you are going to spend over the full term of the car finance. It takes a cool head to work out the sums under pressure from the car salesman, however subtle the pressure may be. If you know the cost of the car for cash, then you may be amazed to learn how much it is really costing you once finance and extra insurances have been added on. An all-inclusive figure can look extremely different from a seemingly low-cost weekly payment, particularly when the term is a long one.
