Car Dealers

[jay hay-char]

Not a rant about dodgy backstreet car dealers, but an observation about Main Dealers selling specific makes.

For the first time in a while, Mrs h-c and I are in the market for a new (to us) car and have been scouring local dealers looking for something a couple of years old, with about 20 to 30 thousand miles on the clock. We've now agreed on something (I thought we never would ) and left a deposit with a dealer, with the intention of picking the car up next week. Last night, I received an email from the dealers with six (count 'em ) attachments all covering various types of insurance that we neither want nor need. I can see that some of them - for example, Gap Insurance - might be useful if you're buying the car with a loan and it gets written off - but wheel and tyre insurance? Minor damage insurance (what on earth is that)? Oh, Pur-lease. More irritatingly, if I don't want the insurance they are insisting that I sign a bit of paper to say so. Now, I don't really have any objection to doing so but why the blanketty blank blank should I have to?

Or am I just being a grumpy old git? (Rhetorical question - no need for all of you to yell "yes" )

OK - rant over

 

[urbanracer]

Not a rant about dodgy backstreet car dealers, but an observation about Main Dealers selling specific makes.

For the first time in a while, Mrs h-c and I are in the market for a new (to us) car and have been scouring local dealers looking for something a couple of years old, with about 20 to 30 thousand miles on the clock. We've now agreed on something (I thought we never would ) and left a deposit with a dealer, with the intention of picking the car up next week. Last night, I received an email from the dealers with six (count 'em ) attachments all covering various types of insurance that we neither want nor need. I can see that some of them - for example, Gap Insurance - might be useful if you're buying the car with a loan and it gets written off - but wheel and tyre insurance? Minor damage insurance (what on earth is that)? Oh, Pur-lease. More irritatingly, if I don't want the insurance they are insisting that I sign a bit of paper to say so. Now, I don't really have any objection to doing so but why the blanketty blank blank should I have to?

Or am I just being a grumpy old git? (Rhetorical question - no need for all of you to yell "yes" )

OK - rant over

Changing world I'm afraid. Don't know what marque you're looking at but Ford Motor Co and General Motors now make more profit from 'financial arrangements' than they do from selling cars. I assume that other car manufacturers have positioned themselves accordingly.

The waiver is just a marketing ploy to make you think twice. You might reconsider if you think you're waiving any of your consumer rights goodbye.

As for minor damage insurance, I've not heard of this before but I am immediately thinking that it bridges the gap between your voluntary excess on the 'real' insurance and any small costs incurred for minor scratches etc? As I say - this is a guess.

 

[dunelm]

Not come across signing to opt out of insurance that I had not asked for before. Is this the latest in subversive upselling

 

[jay hay-char]

Changing world I'm afraid. Don't know what marque you're looking at but Ford Motor Co and General Motors now make more profit from 'financial arrangements' than they do from selling cars. I assume that other car manufacturers have positioned themselves accordingly.

The waiver is just a marketing ploy to make you think twice. You might reconsider if you think you're waiving any of your consumer rights goodbye.

As for minor damage insurance, I've not heard of this before but I am immediately thinking that it bridges the gap between your voluntary excess on the 'real' insurance and any small costs incurred for minor scratches etc? As I say - this is a guess.

It's Volvo, but I'm sure you're right about where all dealer profits come from - either unnecessary financial products or incentive payments from the manufacturer(s) they represent. In the same way, most electrical retailers make their profits from warranty policies, although I think people are getting wise to it nowadays..

Yes, so far as I can see, minor damage covers car park dings and such like and I suppose (or am I being over-optimistic?) wouldn't count as a claim, so far as your NCB was concerned.

Just letting off steam, really

 

[DCUKMod]

@jay hay-char - You mean they didn't offer you insurance to cover your excess for your, .. erm,........ insurance?

Remiss of then.

None of these additional insurances are legal requirements, but the signing of a waiver to reject them is likely to make those not so savvy to think "it must be important if I have to sign that".

In terms of profitability of finance, rather than the item being financed, it's been that way a long time. The number of times we've had interest free credit because we've been able to barter an overall better deal than handing over a lump of money is quite significant.

The personal finance industry is a very "interesting field" to lift the lid on. It could blow your mind.