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Hi Guys ! I am taking delivery of my new baby on 12 Nov and I have been sorting out the finance side of it all!
My question is ! Can I have MINI Shortfall if I Get a personal loan to pay it or does it only apply with BMW finance

My sales rep didn't know and said I needed to speak to their own financial guy but he scares the crap out of me! I just want to smack him he's so pushy!

If anyone knows for sure that, would be great anything to avoid talking to that jerk again!

Cheers Boys and Girls

Looking forward to joining the drives!!!
 

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Hi

You should be able to buy a variation of shortfall insurance from them. The purpose of shortfall insurance is to pay off any balance of finance in the event of a total loss insurance claim if the insurance payout isn't great enough to settle the outstanding finance. They should be able to offer you a stand alone product called Return to Invoice insurance -RTI. Sometimes called GAP (Guaranteed Asset Protection), it pays you the difference between the insurance payout and the original invoice price. It usually lasts for three years. Not exactly the same as shortfall insurance but would usually have the same net effect for you as you can go and buy another car effectively for cash using the cheque from the insurance company and the cheque from the GAP/RTI people.

It's worth knowing (and checking your insurance policy) that most insurance companies offer new for old replacement for the first 12 months of the cars life. It's within the first 12 months that you could get into the most problems if the car was written off as you've barely touched the loan balance and your car suddenly takes a big hit in depreciation and if you've taken out a personal loan it wouldn't really affect you (apart from having to wait for a new MINI to arrive).

Their business manager (although an unpleasent character) will be able to explain it further. As a guide, expect to pay between £250 and £400 for this product. Do haggle though. He will earn commission from selling it to you. Tell him you'll only buy it for £50 -£75 less than he's offering it at. Guarantee he'll do it.

Hope this helps.

nc
 

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You shouldn't have a problem getting shortfall insurance from BMW (or gap insurance as it is also known). I got mine in March 04 for about £300 for 3 years, even though my loan was with Alliance & Leicester, who also did the cheapest loan.
 

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Mini Virgin said:
Hi Guys ! I am taking delivery of my new baby on 12 Nov and I have been sorting out the finance side of it all!
My question is ! Can I have MINI Shortfall if I Get a personal loan to pay it or does it only apply with BMW finance

My sales rep didn't know and said I needed to speak to their own financial guy but he scares the crap out of me! I just want to smack him he's so pushy!

If anyone knows for sure that, would be great anything to avoid talking to that jerk again!

Cheers Boys and Girls

Looking forward to joining the drives!!!
most importantly dont be pushed into something u are unsure about..
 

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I hate to bring this up, but shortfall insurance seems to me to be somewhat of a ripoff. If it costs 400 quid, that's $728 U.S., quite a sum.

So, you're paying $700 for coverage that will pay ONLY if your car is involved in a total loss scenario, theft or collision. That seems like something many folks could afford to risk, IMHO.

One factor in the decision to purchase such coverage may be your driving habits and claim history. Do you have a lot of speeding violations and wrecks? If so, the shortfall/gap coverage may not be a bad idea.

However, if you're a relatively safe driver, why not save the $700, put it in the bank or invest it, and keep it there in case you wreck your car? And if you don't have the extra $700, then look forward to having it by not purchasing the coverage!

Car dealers have become EXPERTS at selling us things we don't really need. Maintenance contracts (rubbish); undercoating (useless); rustproofing (not needed on modern cars), the whole lot is mostly a profit maker for the dealer.

My advice: forget about the shortfall/gap coverage, save the money for something that's useful!
 

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Like with all insurance, its about Risk and being covered. Most people would think Gap insurance is a rip off, and it probably is.

But heres the scenario:

You spend £24k on your new Cooper S Works. You Borrow £20,000 over 4 years, paying £4000 deposit.

After one year, you probably owe around £18,000 on your finance.

Your car however is only worth about £15,000 according to the not very generous insurance company (no matter what you think, they will value the car lower than you think it should be), and expensive options depreciate very heavily in their eyes.

A month later you write the car off. Its your fault. They pay out their £15,000.

What you going to buy now? A one year old used abused Cooper S that someone else has chossen the options on, or are you going to replace the original car with a brand new one of equal spec?

Without GAP, or shortfall, you have three options. Add another £9,000 to what the have recieved from the insurance company, and replace the car like for like. Or buy a used Mini, that you aren't really happy with, or thirdly, buy something cheap and boring, not a Mini Cooper S Works....

GAP insurance however means you just walk into the dealership, say, "Ooops, I broke the last one, please replace it with a new one of the same specification" - hey presto, new mini.

Its called peace of mind. You either want it, or you don't. Investing the £400 elsewhere won't cover your losses. And remember, the important thing here - you get a new car. Not a 'like for like similar age car'. So its actually a way of beating depriciation too....


I don't sell Gap insurance. :rolleyes: Gap insurance is sold seperatly from finance, so it will be available without it. I paid cash for my Mini, I still bought GAP insurance. It doesn't just save you from the shortfall in finance oustanding, it protect you from the difference in what the insurance company believe the car is worth and the cost of replaceing it, with a new car.
 
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