Why is Gap Insurance so expensive?
I have just purchased an Audi A4 Allroad and was pressurised into considering Gap Insurance. Thanks to your warnings, I declined. The exact same product, for which the dealer wanted £550, was just £139 from the warranty company.
Asked on 27 July 2012 by MR, Colchester.
Answered by
Honest John
Most salesmen are licenced IFAs and this is actually one of the few ways they can make any commission because there is almost nothing to be made from selling cars. It's ridiculous to charge so much commission on something that is much cheaper elsewhere.
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