With 81% of new vehicles this year bought with car finance – and personal contract hire an increasingly popular finance option – we’ve been thinking about how to best meet the needs of our Finance/PCP/Contract Hire Gap Insurance customers.
It’s no wonder that personal contract hire plans are so popular. They are a very simple way to get your hands on a new car. You pay an upfront deposit, then a monthly payment usually for up to three years. At the end of the term you give the car back. With a PCP you have the further option to pay the outstanding value of the vehicle to keep the car.
It’s increasingly common for people return the vehicle at the end of the term and look for a new one. Whilst the deposit isn’t returnable, quite often the deposit can be ‘rolled over’ onto a new car. It can be quite a considerable sum – the equivalent of up to 9 payment instalments. So it’s a good idea to protect your deposit if you can – it could be a bit of a shock if your car was unfortunately written off and you needed to find the down payment for a new car.
Direct Gap has added a new simple new way of covering PCP and contract hire agreement deposits up to £3,000.
You can buy our simplest Finance/Contract Hire GAP insurance product – which ensures you can meet your finance obligations in the event of total loss - and have the option to get back your original deposit for a single additional payment of £35.
Our deposit protection option plus finance/contract hire Gap insurance is less than buying the full Return to Invoice policy (which includes deposit protection as part of a more comprehensive package).
No one wants their vehicle to be written off. GAP insurance with deposit protection is a cheap and simple way to ensure that all your finance company obligations are met and you have the deposit to get back on the road with another finance agreement – without having to empty the bank.
By Beate Kubitz at 22 Oct 2017, 00:00 AM