[Soul_Glo]

is my understanding correct.

Say you finance a car for £20,000. You put down £5,000 deposit.
After three years the car is subject to an act of God.
At the time it is worth £12,000 but the insurance company value it at £10,000
So the GAP plugs the difference of £2,000

Does that leave you with nothing to get a new car?
What is the difference between return to invoice and return to market value?

Is the market value one leaving you worse off?

Thinking about BMW Select as you can tell.

Thanks

[djgandy]

Return to invoice is exactly that. It will pay you the GAP between insurance and the invoice you paid.

There is an extra level offered too, Invoice plus or something, where they'll even account for inflation in prices and pay you what is required to get an equivalent car to when you bought yours.

pistonheads GAP / ALA do great deals. I think 4 years on the M3 was £200 or so for RTI (Return To Invoice). £50/yr and I'd get £30k if it was written off.

[The0pportunist]

What is return to market value ?

I went for Return to invoice for 5 years, hopefully i never have to use it but it's nice that i will get the full price i paid if it written off regardless of fault.

There is a discount code on this thread. Might still work

http://www.e90post.com/forums/showth...hlight=gap+ala

[djgandy]

Originally Posted by The0pportunist

What is return to market value ?

I went for Return to invoice for 5 years, hopefully i never have to use it but it's nice that i will get the full price i paid if it written off regardless of fault.

There is a discount code on this thread. Might still work

http://www.e90post.com/forums/showth...hlight=gap+ala

Market value is the money required to buy an equivalent car.

Say you pay £25k for a 4 year old M3 with huge spec.
In 3 years time it gets totaled.
A 4 year old M3 with huge spec is now £30k
You should get £30k

https://www.pistonheadsgap.co.uk/gap...ment-insurance

[The0pportunist]

Originally Posted by djgandy

Market value is the money required to buy an equivalent car.

Say you pay £25k for a 4 year old M3 with huge spec.
In 3 years time it gets totaled.
A 4 year old M3 with huge spec is now £30k
You should get £30k

https://www.pistonheadsgap.co.uk/gap...ment-insurance

That is very interesting! Does this mean they have to pay out on a newer shape m3 if the timing is correct. I.e At time of claim 4 year old car is an F80 instead of e9x ?

[djgandy]

Originally Posted by The0pportunist

That is very interesting! Does this mean they have to pay out on a newer shape m3 if the timing is correct. I.e At time of claim 4 year old car is an F80 instead of e9x ?

No idea. As per all insurance, whats written and what you get may not always be what you think you're going to get

TBH most people would be happy to get enough back to buy a similar car, let alone the money they paid 3 years ago.

[BMW Steve]

I took out GAP with my f11, I paid 25000, as I understood it, if my car gets totalled and its market value is currently 19000 the GAP Insurance will pay out the outstanding 6000, that is what GAP insurance is for.

But then I might be wrong but that is how it was explained to me....

[pinco000]

Originally Posted by BMW Steve

I took out GAP with my f11, I paid 25000, as I understood it, if my car gets totalled and its market value is currently 19000 the GAP Insurance will pay out the outstanding 6000, that is what GAP insurance is for.

But then I might be wrong but that is how it was explained to me....

I agree

[Soul_Glo]

Going to be a bit thick here...

Using the return to invoice example...
Let's say 20,000 for the car with a 5,000 deposit so that is 15,000 outstanding finance.

Something happens... insurance only pay out 12,000 and gap plugs the rest with 3,000.

Does that leave you with nothing??? Or is there some figure I am missing where you get say 5-6k out of the process for your next car?

Replacement gap looks interesting.

Is my understanding correct on this return to invoice thing?

Thanks

[Ian122]

Originally Posted by Broken_Gearbox

Going to be a bit thick here...

Using the return to invoice example...
Let's say 20,000 for the car with a 5,000 deposit so that is 15,000 outstanding finance.

Something happens... insurance only pay out 12,000 and gap plugs the rest with 3,000.

Does that leave you with nothing??? Or is there some figure I am missing where you get say 5-6k out of the process for your next car?

Replacement gap looks interesting.

Is my understanding correct on this return to invoice thing?

Thanks

The gap puts in 8000 in that example. It puts it back to the total you paid for it.

[Soul_Glo]

I get it. In my example I was thinking about the immediate unfortunate. After 3 years a large chunk of it would be paid off and in the forbidden event you'd receive a little extra. Not much but might be enough for a small deposit.