Having to take out dealer insurance to get taxed - SteelSpark
Hi,
I am in the process of buying a used Mondeo from a franchised dealer (not a Ford Direct car).

I will be collecting the car on Wednesday and do not yet have insurance. The dealership has told me that I will need to apply for 7 days free insurance via their scheme with Norwich Union, so that they can get the cover note in time to tax the car before Wednesday.

Sounds OK to me, but I just wanted to check if there is anything that I should be aware of with this. I am a bit suspicious of these guys following an issue with paying early (which some of you may have seen on my earlier thread). Not suspicious that they are trying anything dodgy, just that they will try to lock me into the deal ASAP, before I collect the car, or maybe lock me into some other "extras".

Is this situation usual? Does taking this insurance commit me to buying the car? (I'm 99% sure that I will buy it, but obviously want to check it again before handing over the cash) Is there anything else that I should watch out for.

Just wanted to say thanks again for all who helped on my earlier thread, much appreciated, and any thoughts on this issue would likewise be very appreciated.

Many thanks.



Having to take out dealer insurance to get taxed - mscott
I did this last year. I bought the car (paid with a debit card), then the dealer phoned Norwich Union and gave them my mobile number. They phoned me and asked me all the usual questions and then faxed the insurance cert to the dealer. I then walked to a post office with this and the appropriate bit of the V5, paid for a new tax disc, walked back to the dealer and drove away. I received the insurance paper work in the post a few days later and a phone call after a week asking if I was going to keep the insurance going, which I wasn't, and that was that.
Having to take out dealer insurance to get taxed - daveyjp
I received similar free insurance for 7 days on my X type.

It was applied for online by the dealer, he printed off the policy documents and the car was taxed using this certificate. They also use it as an opportunity to give you an insurance quote. As the dealer predicted it wasn't competitive!

In the meantime I'd sorted out my own insurance.

Before the days of the internet the Ford dealer used to have a pre printed pad of certificates. They would fill in your details and this was enough to tax the car.
Having to take out dealer insurance to get taxed - jbif
Is this situation usual? Does taking this insurance commit me to buying the car? (I'm 99% sure that I will buy it, but obviously want to check it again before handing over the cash) Is there anything else that I should watch out for. >>


see
www.honestjohn.co.uk/forum/post/index.htm?v=e&t=61...8

www.honestjohn.co.uk/forum/post/index.htm?t=73289&...e

Edited by jbif on 14/09/2009 at 11:04

Having to take out dealer insurance to get taxed - ifithelps
The Ford dealer did something similar when I picked up the CC3.

Using the seven-day cover, he was able to register the car to me online and the tax disc was stuck to the windscreen when I picked up the car.

It's a convenient service with no hidden catches.

The insurance company didn't even bother trying to quote me for a year's cover.
Having to take out dealer insurance to get taxed - harib
A similar thing when I bought my (used) SEAT.

Got the free 7 day cover. When I phoned through I had to quote a dealer number, so I expect if you take them up on the offer of insurance for a year, the sales person gets a bit of commission?

However, after a week, they quoted me £820 for a year. I ended up paying around £440 elsewhere, so certainly not at all competitive.
Having to take out dealer insurance to get taxed - SteelSpark
Thanks for all the help.

It sounds like this insurance isn't a problem, but does it have any impact on committing me to buying the vehicle (because I have taken insurance out on it and it has been taxed against that insurance)?

Thanks again.
Having to take out dealer insurance to get taxed - ajsdoc
This happened with my Ford purchase - just a way for them to quote (uncompetitively in my case) and enables easy taxing etc.

Surely you've already committed to buy the car by the stage you're discussing taxing it etc??
Having to take out dealer insurance to get taxed - Lygonos
Surely you've already committed to buy the car by the stage you're discussing taxing it etc??


+1 on this.

I assume you've paid a deposit and agreed terms to purchase.

You can always pull out but your deposit is likely to disappear to cover the cost associated with breach of contract.
Having to take out dealer insurance to get taxed - SteelSpark
Surely you've already committed to buy the car by the stage you're discussing taxing it
etc??
+1 on this.
I assume you've paid a deposit and agreed terms to purchase.
You can always pull out but your deposit is likely to disappear to cover the
cost associated with breach of contract.


I've paid a deposit having seen it a week and a half ago, and intend to buy it so am committed in that sense, but I don't want to be in a position where I am legally committed until I can check the car over, pay and take it away.

So, for example, if it has acquired a big dent or a steering problem since I last saw it, I want to be in a position to make sure that they are sorted before I actually legally commit to buying it.

If I have paid the deposit, have I actually entered into a legal contract to buy the car? My understanding was that I hadn't but then I am complete beginner with buying cars, and I am not actually clear when the contract is entered into (any guidance here would be appreciated).

Thanks for your help.

Having to take out dealer insurance to get taxed - Lygonos
>If I have paid the deposit, have I actually entered into a legal contract to buy the car?<

Yes, but you cannot be physically forced to part with your lolly (unless the dealers are the Mitchell Bros from Eastenders).

You can, however, be held in breach of contract if the dealer supplies the goods as agreed upon and you decide not to pay up the remainder.

Usually the dealer will take the deposit in lieu of purchase. Ths does not apply if there is an obvious problem with the vehicle before you drive it away.

Having to take out dealer insurance to get taxed - tack
"unless the dealers are the Mitchell Bros from Eastenders"

The Mitchel Bros are a couple of powder puffs. My Nan (from the real East End) could do 'em one 'anded!

But if it helps, I paid a deposit on a new car for my son, insured & taxed it through the dealer. When we went to collect the car it had a ding on the window frame and large circular scratches in the paintwork (like it had been polished with sandpaper!) I asked for deposit back and rejected the car. "But it is taxed and now registered" cried the dealer. "Not my problem mate, your problem, gimme my money or I'll get my Nan on yer". I got the money back, contract voided.

I didn't really threaten them with my Nan.....I wouldn't want to scare them that much!



Having to take out dealer insurance to get taxed - barney100
Never heard of this before, you have to have their insurance for a week to drive the car?
Presumably you have current insurance for a car so I would have thought you only need to inform the insurance company of change of vehicle and the jobs done. Companies seem to adopting this 'do it our way'stance with the aim of getting more cash out of you. I walk away if i don't like the deal and go somewhere else. Methinks they are trying it on!
Having to take out dealer insurance to get taxed - daveyjp
No try on at all and you don't HAVE to have their insurance, it just oils the wheels and I think it's a good idea.

Dealers want cars off the lot once they are sold and buyers are always keen to take delivery asap. By providing short term insurance it enables the dealer to tax the car, get it off the lot and you get the car on the day you want as it's insured.

My X type was bought just before my insurance expired. The 7 day cover allowed me to take the car then shop around for insurance.

If the 7 days hadn't been offered I would have had to arrange cover, waited for the policy paperwork, get this certificate to the dealer who could then get the car taxed.


Edited by daveyjp on 15/09/2009 at 09:38

Having to take out dealer insurance to get taxed - jbif
Never heard of this before, you have to have their insurance for a week to drive the car? >>


The reason you won't have heard of it before is because it looks like the OP has misunderstood something, or the salesperson has misinformed him.
There is no compulsion to take this 7 day insurance.
www.aviva.co.uk/media-centre/story/17212/driveaway.../
search "Norwich Union Direct Driveaway cover" for details.
Having to take out dealer insurance to get taxed - ifithelps
As others have said, the driveaway cover is an optional service.

I think the Ford salesman shunted me in that direction because it meant he got the cover note direct from the insurer, so didn't have to chase me for it, and could then register the car online in his own time.

Does he get some commission?

Maybe, but the driveaway cover doesn't feature in the deal one way or the other.

It is only mentioned after the money's agreed and the contract is signed.

While it's right to consider carefully anything the dealer tells you, in this case I don't think there are any hidden catches.



Having to take out dealer insurance to get taxed - Andy P
When I bought mine, I arranged for the cover to start on the morning of the day I was due to collect it. The dealer taxed it in the morning and I picked the car up in the afternoon. When I asked about cover for my existing car, they said that the two policies overlapped for 24 hours for just this eventuality, so I didn't need to bother with BMW's free insurance.

Come to think about it, I've always done it like this.
Having to take out dealer insurance to get taxed - SteelSpark
The reason you won't have heard of it before is because it looks like the
OP has misunderstood something or the salesperson has misinformed him.
There is no compulsion to take this 7 day insurance.


I think that the information the salesperson gave me was accurate. As I mentioned in the original post

"The dealership has told me that I will need to apply for 7 days free insurance via their scheme with Norwich Union, so that they can get the cover note in time to tax the car before Wednesday."

so I could have gotten different insurance, but that might have dealyed getting the tax.

I have taken out the insurance which doesn't seem to have any catches (except a few minutes on the phone giving me a annual quote that was not competitive). I checked that the insurance expires after 7 days, rather than forcing me to cancel it or be lumped with their insurance.

The only thing I am not clear on, having given it some more thought, is whether the car should need taxing. It is registered in March 2009, so I would have thought that it would have about 6 months to go on its original tax.

Not sure if the dealership is making a few quid here or not (maybe they can renew and existing tax disc and just pay the 6 month difference), but there doesn't seem to be any kind of significant catch.
Having to take out dealer insurance to get taxed - ifithelps
Probably registered with six months tax which is now due to expire.

Dealer may have a policy of taking the demos of the road after six months to avoid putting too many miles on them.

Having to take out dealer insurance to get taxed - SteelSpark
Probably registered with six months tax which is now due to expire.
Dealer may have a policy of taking the demos of the road after six months
to avoid putting too many miles on them.


Yeah, that makes sense. They have told me that it is a demo car that is also the personal car of one of the managers. I guess they give them a new car when the new registrations come out, so they know that they will only be driving it for 6 months. Not sure how that would work with test drives for potential buyers after the tax had expired though.
Having to take out dealer insurance to get taxed - ifithelps
..Not sure how that would work with test drives for potential buyers after the tax had expired though...

Trade plates.
Having to take out dealer insurance to get taxed - SteelSpark
Trade plates.


Ah ha, I wondered what they were for! They say you learn something new every day, well, since I started the process of buying a car, I'm learning loads of new things every day. :)
 

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