BMW X1 (2016) - GAP insurance: Worth it for "free" ??

Honest John Back Room » Motoring discussion
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Wed 6 Jan 2016 10:51
BMW X1 (2016) - GAP insurance: Worth it for "free" ?? - PrettyFlower

HI all, first post here.

Am in process of buying a new car (BMW X1), and have negotiated a £500 discount off the new car, as well as a decent price trade in for my existing car, and am overall satisfied with the price.

The dealer has now emailed me finance forms, and has additionally (without discussion with me) informed me that he has "been able" to agree with his manager to provide me with GAP insurance for free (ie is listed as me buying it for £399, and is now giving me an £899 discount, effectively making this free).

I am suspicious. I would not normally buy GAP insurance, and suspect that they get some type of kick-back for "selling it" to me.

Should i ask them to remove it? Is there something i am missing?

I am purchasing via a 4 yr HP deal.

many thanks

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Wed 6 Jan 2016 11:10
BMW X1 (2016) - GAP insurance: Worth it for "free" ?? - RobJP

Free is free.

However, it moght be worth seeing if they will give you the additional discount instead. You should be able to get GAP insurance for less buying independently probably £200-£250), HJ recommends ALA, and has a link to them on this site.

I used ALA when buying a new Z4 last year. A pleasure to deal with, and the price for a £33,000 car was (I think) about £200.

If, however, they say that it's either free GAP insurance or no additional discount, then take the freebie.

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Wed 6 Jan 2016 11:14
BMW X1 (2016) - GAP insurance: Worth it for "free" ?? - thunderbird

If they are giving it you for free why would you want to ask them to remove it. If you really don't want it try for a bigger discount. But do check how long its for and what cover you get, they vary greatly.

When I buy a car I always buy my GAP insurance on-line. On the last 2 occations I have used 123GAP and their prices have been good. No idea about their service should you need it but the reviews are OK. Cost about £130 for 5 years on a £15000 car which for me is good value. Never used to bother but never having had a write off in over 40 years its probably inevitable it will happen eventually and I might as well be insurred.

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Wed 6 Jan 2016 11:19
BMW X1 (2016) - GAP insurance: Worth it for "free" ?? - PrettyFlower

HI, thanks both for the replies so far.

I suppose i consider removing it since i wasnt consulted, and i dont know what the terms are.

I have personally experienced when buying my previous car that the dealer "adding" things for my own benefit at the last minute usually ends up me regretting things. I want to have everything understood and agreed way in advance of signing on the dotted line....

I was also trying to work out if this would increase my monthly payments etc (ie to generate more interest for them via the HP deal) although i dont think that is true, since they are discounting the GAP £399 also.

I think that overall, i am feeling very excited about my new car, and dont want to get suckered in to anything... hence wanting your experience!

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Wed 6 Jan 2016 11:43
BMW X1 (2016) - GAP insurance: Worth it for "free" ?? - daveyjp

The other side of the coin is it a benefit or a potential nightmare?

In a colleague's case a right off claim for his car which should have taken a couple of weeks ended up taking months once his GAP insurance company became involved.

It added another layer to the insurance claims process which he could have done without. The GAP payment was wiped out as he needed to provide a replacement vehicle while the two insurance companies argued over what amounted to £500 of a 5 figure claim.

My attitude to GAP is if I need it I'm spending too much on a car!

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Wed 6 Jan 2016 12:15
BMW X1 (2016) - GAP insurance: Worth it for "free" ?? - Wackyracer
How long is the free GAP insurance for? Quiet often they give insurances for free and then charge you for it the following year unless you cancel it.
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Wed 6 Jan 2016 20:47
BMW X1 (2016) - GAP insurance: Worth it for "free" ?? - xtrailman

You should be looking at around a £2000 discount for the over priced X1, predicted not to hold onto its residuals very well.

Check out the on line brokers discounts.

I can get £15000 cover for under £150 with ala. cover for 3 years.

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Wed 6 Jan 2016 21:23
BMW X1 (2016) - GAP insurance: Worth it for "free" ?? - RobJP

The X1 has just been replaced. Going on C2C I managed to get about £1.5k to £2k off list price.

If you could wait a few months (6 months or so, I'd guess) those discounts will be greater. As in £2.5k to £4k off list, at a guess.

But if you've already signed the agreement, then you're stuck with the deal you're on. In which case the free GAP is better than a kick in the proverbials.

Edited by RobJP on 06/01/2016 at 21:23

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Thu 7 Jan 2016 07:36
BMW X1 (2016) - GAP insurance: Worth it for "free" ?? - I'm a Pane

"I suppose i consider removing it since i wasnt consulted, and i dont know what the terms are."

If this is the case then the dealer has broken FCA rules. They have to have gone through a demands and needs with you AND provided the full T&C's for you to take away or have emailed to you.

They cannot just 'add' GAP whether 'free' or not - it's a regulated product and needs to be treated as such by all dealers.

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Thu 7 Jan 2016 09:28
BMW X1 (2016) - GAP insurance: Worth it for "free" ?? - xtrailman

Whats the problem with taking a freebie?? You don't have to claim on it.

I'm being given 3 years free servicing which should have cost me £299.

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Thu 7 Jan 2016 20:42
BMW X1 (2016) - GAP insurance: Worth it for "free" ?? - PrettyFlower

Thanks once again to all.

Overall, i have decided to go ahead and order (have now gone and done so), so i'm very excited about the new car coming :)

In terms of my point though, i appreciate the replies.

It's my view that they didnt act properly by adding GAP, and its quite obvious to me (just a guess) that it benefits them in some way. So if they start playing awkward with me in any way, i will use this against them, that they misused a regulated product; however if they are decent from here on in, i'll treat this as a free deal (albeit one i didnt care about)

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Thu 7 Jan 2016 21:40
BMW X1 (2016) - GAP insurance: Worth it for "free" ?? - Nickdm
They are "giving" you GAP because they will get paid commission on the sale of GAP policies.

They can afford to "give" you GAP probably because they are making a huge margin on the sale of the car to you. (500 quid doesn't sound like much of a discount on the car price).

Presumably the sales commission they receive for the GAP policy sale has more value to them than the extra discount on the car. Just creative accounting on their part.
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Fri 8 Jan 2016 09:34
BMW X1 (2016) - GAP insurance: Worth it for "free" ?? - skidpan
500 quid doesn't sound like much of a discount on the car price

Agreed.

Just looked on the website of a couple of trustworthy brokers I have used in the past and their discount on an X1 is between £1115 and £1696 depending upon model.

Your dealer is doing you no favours at all.

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Fri 8 Jan 2016 11:50
BMW X1 (2016) - GAP insurance: Worth it for "free" ?? - Avant

I wonder if that's the old or new model X1. Discounts will be harder to get on the new one which has only just come out.

As ever, the 'right price' is what someone will pay.

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Fri 8 Jan 2016 12:16
BMW X1 (2016) - GAP insurance: Worth it for "free" ?? - xtrailman

No the new model was available with over £2K discounts when first available for order.

Old model had much larger discounts availble. According to reviews the X1 does not retain its redsiduals well atall.

As it was going to cost me another £10K to spec a X1 to my CX-5 Sport standard equipment list i discounted the X1. Not even electric folding mirrors where standard!

I was also put off by the 8 speed box not being a ZF type, and the over priced list price according to reviews. The X3 appeared a better buy, but its bigger than what i need. I test drove a Tucson which was very nice, but bought another CX-5.

Edited by xtrailman on 08/01/2016 at 12:17

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