I have pretty much finished all the paperwork for my new Smart ForTwo and decided I would take GAP out coz I would be stupid not to really... Anywho, Smart are charging me £399 for the privilage of 3 years cover. Since browsing the interweb I have found Vehicle Replacement GAP on a 3 year term, claim limit of £5000 for a total cost of £169 (this is an average price on several sites)

Looking through all my finance documents, I've been charged for the GAP but I Don't want, to which I will be speaking to Smart tomorrow lunchtime.

I signed the paperwork on the 9th of August but can't offically collect the car till tomorrow as it's a 58 plate but I am collecting it on the 6th of september.

Am I still able to cancel it?

Short answer; yes.

The finance agreement shouldn't get purchased by the Finance Company untill the delivery date of the new vehicle so you can cancel anything up untill this point...

JJ

Thanks for that.

I've since found GAP for £88 for 3 years cover.

Looks like I will be cancelling the cover and getting it online.

Hi,

I work for a finance company (one of the worst ones ) and as far as I am aware all insurances are able to be cancelled within 30 days of the agreement start date, I have also been told that it is due to change to the date you receive the policy cover directly from the insurer.

If I where you I would check the terms and conditions small print and you will find this info ( or the relevant leaflet that they should have given you at the point of sale ).

I would also put this in writing to the finance company and get proof of postage.

regards

I looked through all the paperwork I have and I don't seem to have anything that suggests I have received the GAP cover.

http://i294.photobucket.com/albums/mm100/imac331731/finance.jpg

That is the finance document and as you see in yellow is the £399 GAP which has been taken out of the £1000 deposit. That left me with £601 as a cash deposit for the car and being now such a low depsit bumped the monthly payments to £141 a month.

I'm not aware of signing an agreement for GAP so I will call Smart today and find out what is going on.

Hi,

I have heard of a company including this under a diffrent format ( one that u can not canx within 30 days ). If I was you I would make sure that they reciive a letter within 30 days of taking the agreement out and I would be asking the garage regarding the diffrence in documents,

Did you get a recipt for the £1000 deposit? I am no expert but I would belive that the FSA would be intrested in this type of incident.

Mis selling of insurences is a hot topic within banking and finance companies and there have been a lot of Fines handed out to them.

I got 2 receipts for the two £500 deposits paid. Need to speak to the guy at Smart tomorrow to find out wtf is going on.

As I have said previous, I haven't got any form of paperwork reguarding GAP so I'm not even 100% sure it's even been set up.

Biggest problem is I don't want to cancel everything and end up loosing the car as I've had my heart set on getting one for years.

I will say though, GAP was never mis sold to me as I wanted it added for peace of mind but not knowing I was being way over charged for it... Now thats a whole different game.

Even if I wanted to, I could send a letter to cancel the GAP as I have no refference number, no idea who I am buying GAP from or where to even send a letter.

Hopefully tomorrow I will get some answers.

Many thanks to everyone on here for being very helpful.

OK, I spoke to Smart today and have confirmed that the GAP hasn't fully gone through yet and that the process will be stopped. I will get a call for the finance man tomorrow to redo all the paperwork, meaning I will be using my original £1000 deposit on the car only and that inturn will lower my monthly payment. Also I will still be able to collect the car Saturday but just have stack more paperwork to sign.

Feeling my happier now.

Thanks again to everyone who has helpped. I will further update you tomorrow after I have spoken to the money man at Smart.

Had a nice long chat with the money man at Smart and he explained to me that for £399 I am getting TOTAL cover of the car. It covers me for £10000 not £5000 like pretty much all the others. He explained that the most I would have to find would be £35 for a new road tax if ever I had to claim also, the company they use has a pricing structure that means I could own any car be it a Merc, Smart or a Skoda and if they full into the retail value of £10000 then I will still pay £399 and say the insurance would only pay out £1000 for whatever reason then I would have £9000 taken out of the gap cover.

I'm sure it's still a little steep in cost but I am happier now knowing that I am well and truely covered.

He told me they have lots of people ringing up after the purchase the cover saying they've seen it online for much less and he even went through the online quotes with me and called up the company history and explained that their cover is £5000 and that would leave me out of pocket if I ever had to claim and the insurance company didn't pay out enough.

Oh and the £141.09 pm payments include payment protection and has nothing to do with GAP. All teh GAP paperwork will be handed over to me with all the other relevent documents with I sign the handover form.

Glad I found this site and glad I spoke to the money man.