This is a very good thread, highlighted some gaps in the market for insurance finance etc etc

wezjax - Free insurance is always FC on cars, never heard of them being TPFT.

sxi16vjoe is right here with the GAP insurance clause.

for example: you finance a car for say £12k

2 months later you write car off

Insurance pay pay ou on market vakue for car which is say for arguments sake £9.5k

that leaves a GAP in price for what u borrowed and what u get back. this is where the amount your stuck with comes in £2.5k

You can cover yourself against this loss buy taking out the GAP insurance. Vauxhall are advertising this in my local dealer.

depends what cover the free insurance offers surely??

i.e fully comp or tpft.

Finance is fine, but the points you have raised here you need to take up with the insurance company you plan to go with and they will be able to advise you on what is the best course of action.

Its a hard question to answer because so many factors have to be taken into account.

BTW nothing has actually happened, im just trying to teach someone that financing a car isnt stupid and if you write it off recently after gaining it, your not totally screwed

yeah u have to pay it, my mate did it wth Saxo VTR a few years ago. We all decided to get bangers for 1st cars in case the inevitable happens. Not him, he goes and buys a brand new VTR stacks it 6 days later outside the pub trying to take an island about 70. Still paying now!!!

i had that clause!!!!! thank fcuk.

you would have to pay cost of car plus finance cost... unless.. there's a clause in your insurance which covers you to pay off remainder of finance... but very unlikely...!

hard life mate...

Tom

i agree with that one.

if you still owe money then the finace company takes the aount thats left off the insurance check. if you owe more than you get back from insurance then you still owe the finance company.

quote:

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Originally posted by bigW

He write off his first SXI corsa B which I still maintain was an 8v (Ask Daimo, but thats another storey)

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I know they have cracked down on the free insurance offers but here's how it worked for my mate.
He write off his first SXI corsa B which I still maintain was an 8v (Ask Daimo, but thats another storey)
He then got a replacement Black SXI with a higher spec, elec windows, sunroof cd etc.
He wrote that off a few weeks later and got another replacement SXI, a red one this time, with same spec as the black only with heated seats this time. Guess what happened it? Yip, u guessed it, he wrote it off into a parked car.

Then he got another replacement SXI which is still alive but as he's lost his liscence his sister has it now.
When the finance deal came to an end and it was all paid off he was left with a 6 month old car with higher spec instead of a 3 yr old car with shit spec. Jammy bastard but he'll neva get ins in his name again unless he wins the lottery.

ok.. so we all agree you get a fair bit of money from ins to cover car? and NOT zero !

if u pat gap protection which is about £5 a month. it covers the difference if the insurance wont cough up the full value.

e.g. my old car was written off.
insurance offered 1k. i owed 1.8k.
gap protectin covered the 800 so i didnt hjave to payi it

yea.... my point to this is you get some form of the money back.

Someone seems to think you get FUCK all from ins and just generally end up paying for something you dont have for 2 years after, which is bollox, and if that was the case, finance would never be an option for anyone.

in some cases you do, a mate of mine lost his licence after an accident, had his brand new car for about 1 month and wrote it off... that was a year ago and he is still paying back some of what he owed now, its bad but the way it goes sometimes

im not really talking about a new car... im talking about new and 2nd hand cars on finance... you dont carry on paying without a car.

if ure on free insurance and you write it off when its that new, don't they replace the car with a new one?

grrr.... not the total... but you dontpay the freakin 7 grand left..... as with writing off any car you loose out !!!

ok mate... maybe you wouldnt... but you dont friggin pay for a car you dont have.... there is a process in which your covered if that does happen

yeah, you still have to pay the remainder of the finance, the inurance payout won't normally cover the total finance cost.... bad luck

i wudnt

You finance a new clio 1.2 16v on free insurance at 18....

you write the car off 2 weeks later... please explain the process from now on.

Someone seems to think you still have to pay for the car.