Depreciation Gap Insurance

[N80SSM]

Anyone noticed how horrendous the depreciation is on these, mines valued today at 14k just 10 months after purchase (32k). Fear I now must buy gap insurance as the value is so low.

 

[MelanieMoxon]

Yeah, Its a new car thing though not just MG4's I ran the numbers on the new Renault 5 nigh on 30k for the spec I'd want and its worth 11k GFV after 14 years. Its now (the '4 has grown on me especially since I put Eco Contact 6's on the back) the sole reason why I am handing it back at the end of the PCP, I got a £16.5k GFV when I bought mine, I'm not making up that loss in refinancing.

I would say always look into return to invoice gap insurance if you are buying a car on PCP for the sake of a few hundred quid it could save you 1000's if the car is written off.

 

[siteguru]

Can you buy GAP insurance after the fact, when the value of the goods has already depreciated at the time of buying it?

 

[Ian Key]

Don't use WeBuyAnyCar to get a value for your MG4 unless you are sitting down. For my 26 month old low mileage Red Trophy they valued it at £12,555.

 

[salty]

Can you buy GAP insurance after the fact, when the value of the goods has already depreciated at the time of buying it?

Good point, not sure if you can. Think it's a brand new car thing only.
Personally never taken out GAP insurance. Your car Insurance, will give you the full replacement value anyway in the first 12 months. After that you takes ya chance.

 

[Ferretusmaximus]

Some providers will allow you to buy GAP insurance up to a year after purchase - try visiting some the insurers online and check their T's&C's. Not sure every insurance company will give you full value in the first year - replacement value is not the same as the outstanding finance - don't forget the VAT will typically come off the value as soon as you sit in your new car. GAP Insurance covers a lot more than depreciation cover (which is not what it was designed for). Comparing the cost of GAP Insurance to replacing a car and having transport while your replacement car is built it is very good value for money (e.g., £60k car covered for £500 for four years - that's £125 a year - no-brainer really).

 

[Tight Git]

Don't use WeBuyAnyCar to get a value for your MG4 unless you are sitting down. For my 26 month old low mileage Red Trophy they valued it at £12,555.

My sister is looking for one - let me know if you are selling it!!!

 

[N80SSM]

Well you can definitely get cover I've had a few quotes now. Looks like you need to buy it before the car is over a year old to get the return to invoice policy and your insurer must offer new for old replacement in 1st year. I just don't think it's worth the risk especially how easily the write EVs off these days.

 

[Bam Bam]

Gap insurance is a wager with someone on whether your car will get totalled during the term.

Some people love gambling so will consider it, and/or do the numbers and work out how to win overall when making many such bets (in the case of insurance companies).

If you offer enough money so that it seems like a good bet for them, you will find someone to provide the insurance.

 

[JonnyG]

I usually got GAP Insurance on my Golf R's as they were qute a "nickable" car. Surprisingly the GAP premium for these types of car is no different to your usual car, so well worth it for peace of mind on cars that top the most stolen list. For the MG4 its less of a worry getting it stolen but as above, EV's do tend to get written off more easily.

 

[Mickandsej]

Pick up my MGS5 tomorrow and tried to change my Motoreasy GAP online but they don’t recognise the MGS5 yet. Will ring them in the morning. Motoreasy had been good over the years, found two old GAP polices I’d forgotten about and credited me towards my ZS ICE GAP. Switched it to the 5, then the XP and now the MGS5 at minimal cost. Will update as soon as sorted.

 

[Mickandsej]

Cost me £56 to update my GAP to 36 months on the S5. Still not recognised on their system as it’s so new but all done on a recorded line. Will check in soon to see if it’s gone on the system anyway. Never had to claim it and hope I don’t but their call handling has always been top notch.

 

[Kithmo]

Can you buy GAP insurance after the fact, when the value of the goods has already depreciated at the time of buying it?

You can, but they only insure it for the market value at the time you take out the insurance.
So if you rely on your car insurance policy giving you new for old for the first year then take out GAP for the second year the Gap will cover the cost of a 1 year old car.