Heavily discounted pre-registered cars represent attractive deals for the consumer and an increasing number are now considering the financial implication if they were to suffer a write off.
Hertfordshire, UK (PRWEB UK) 23 December 2013
The car2cover guide confirms that industry experts Automotive Services Europe (ASE) have estimated 25% of September’s new car registrations were cars registered without a buyer. This activity is used by dealers to help achieve their quarterly manufacturer sales targets, which attract lucrative financial bonuses. This suggests that over 100,000 new vehicles were registered in September and will be subsequently heavily discounted and sold as ‘pre registered showroom cars’.
In another statement by British Car Auctions (BCA) used car values are said to have increased by 4.3% in November – the highest recorded increase since their research started in 2005. This co-incides with an increase of 16% year on year when compared with the same period in 2012.
It all sounds like good news, so where is this a potential risk for the UK motorist?
Elaine Scott, Partner in the business click2protect who own the website http://www.car2cover.co.uk said, “heavily discounted pre-registered cars represent attractive deals for the consumer and an increasing number are now considering the financial implication if they were to suffer a write off. A discount of £4,000.00 off the retail price today may not be available if they need to replace their car -and manufacturers prices may have increased too. A similar scenario is created by rising used car values with current value rises suggesting a car purchased today for £15,000.00 could cost over £17,000.00 to replace. That’s why we suggest all used car buyers to seriously consider Vehicle Replacement Gap Insurance to protect against depreciation loss and price increases.”
Motor dealers are usually the first to introduce the concept of Gap Insurance to their buyers and yet most only offer a Return To Invoice Gap Insurance which will not cover the higher cost of a replacement.
According to Scott, “We have always been happy to spend as much time as customers need to fully understand the differences between the four different types of Gap Insurance and we encourage customers to call, email or live chat if they have any questions.”
http://www.car2cover.co.uk provide a wide range of market leading Gap, Tyre, Scratch, Dent & Alloy Wheel insurance with a range of additional supplementary insurances being introduced in the second half of 2013.