We are due to pick up own new mini one convertible next Thursday and was wondering if its worth taking out the MINI shortfall insurance that was offered by the dealer!
Now let me think.......... what was the one thing that got mentioned over and over and over again when i bought my JCW last year.....oh yes "shortfall insurance".
The salesman even got the sales manager to try and sell me it after i said i was not interested.
Dont forget as soon as you drive out of the showroom with a new car the optional extras you paid 5 grand for are now worth much less than that in re-sale value terms.
Yes, I remember a similar experience where two salesmen ganged up on me when I said I was not interested. Not a pleasant experience.
The cover is useful peace of mind if buying on finance with a small deposit.
But it only kicks in if you have a total loss eg theft, fire or writeoff, and usually,only after year 1 as many car policies replace with new in the first year. So you may think the chances of needing to claim are not that high.
If your interested in insurance then I'll sell you a policy that will insure you have gravity where you live. It's quite sensible really - for just £39.98 a month I wil make sure that you and your family don't fall from the earth on a regular basis.
You are missing the point of shortfall insurance......
Yes, when you drive off the forecourt you lose thousands - which is why if you write off your car at the 12 month point and your insurance company say its only worth £13000 when you paid £22000 you can not afford to buy a car equally as good.
REMEMBER - shortfall insurance makes up the insurance payout on a write off to FULL NEW value, so you can get a brand new replacement.
Very important peace of mind if you take out finance over a long period with a small deposit.
Lets say I borrow £20000 on a car that costs £23000. I pay £3000 deposit, pay £400 a month for 4 years, and have a final ballon payment of £8000.
My lovely new Mini is my pride and joy. However, 14 months after buying it I am not at fault in a big accident. The other drivers insurance value my 'Pride and Joy' at £14000. However, I still owe £17500 on the finance. So I have no alternative but to try and find a replacement car for £14000. Which will have been owned by someone else and which isnt 'MY PRIDE and JOY'.
I could walk away from the finance and start again, but that would cost me around £3500 of my own money to settle.
I could take the £14000 and settle for something 'inferior and second hand'.
I could take the money and add another £8000 and order a new replacement....
OR, if I had gap insurance, I could simply walk into a Mini show room and spec up a completely new car to the same value as my old one and have a new PRIDE and JOY to cherrish.
Yes, the benifit of Gap insurance is really only seen if you have a write off between months 12 and 48 of a 4 year deal. You can shop around for this insurance, and you can pay in one lump sum (probably around £400) rather than add it to your monthly payments.
I would definatly take GAP insurance if financing in the way detailed above. Having had my car destoryed in an own fault accident at 15 months old and having had to go and find a second hand replacement was very hard to swallow.
As with all products, shop around. As with all insurance, deal with a reputable company with a reputation to protect.
I did that and when I went into the dealers to pick my car up ti told them I didnt want to take their policy as they was more expensive and they matched the price quoted on Surf and Protects site
It helps to have a few printed quotes in your hand
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When I told Mini they instantly matched it!!!! Dealers must have a high mark up. 
