Why should you buy Gap Insurance for Peugeot?
Gap Insurance works in partnership with your comprehensive insurer makes sure that in the unfortunate even that your Peugeot is written off the you are not left financially out of pocket.
Don't forget if your Peugeot is written off that your own motor insurance company are only ever legally obliged to pay you the value of your Peugeot on the day it was declared a total loss. With motor experts predicting that the average vehicle with average usage and average mileage can lose up to 50 % of its original purchase price within just three years. This means that if your Peugeot is written off then the amount that you are offered in settlement could and often is thousands and thousands of pounds less than you originally paid or still have outstanding on finance.
Depending on what level of cover you chose, gap insurance can either, return you back to the original invoice price you paid for your Peugeot (Return to Invoice), pay you the amount of money you need to purchase another Peugeot of the same, age, mileage and condition as yours original was on the day you first purchased it (Vehicle Replacement) or pay off any outstanding finance that you may have on your finance agreement (Contract Hire/Finance Gap).
Please take the time to consider the following facts:
In the UK each year, an estimated 600,000 vehicles are written off
The average vehicle can depreciate by up to 50% in the first three years, including your Peugeot
Your comprehensive insurer will only ever pay you the market value of your Peugeot at the time it was written off or stolen.
If in the unfortunate event that your Peugeot is written off, Vehicle Replacement Gap Insurance will pay you the difference between your comprehensive insurers settlement payment and the amount of money you need to purchase another Peugeot of the same age, mileage and condition as yours originally was when you first drove it out of the show room.
If that model is no longer aviliable then settlement will be based on the superseding model.
Jan purchases a Peugeot 308 for £10,000. Three years down the line, she is involved in a motoring accident which unfortunately writes off her Peugeot. Jan contacts her comprehensive insurer and is informed that she will receive a settlement payment of £5,000 as this was the market price of her Peugeot at the time it was written off.
Jan is informed by the local Peugeot dealership that her Peugeot is no longer available and the superseding model while being quicker, quieter, more fuel efficent and having better speciifaction is £5,000 extra to purchase.
Without any level of Gap Insurance, Jan will have no option but to use her own savings to purchase another vehicle or clear any outstanding finance.
Vehicle Replacement Gap Insurance will top up Jan's motor insurer's valuation with £10,000 which means that she now has the full replacement cost back.
Jan now has the available funds to either purchase her new vehicle, or if her car was acquired through a finance agreement, clear any outstanding finance that she may have and do with the amount in the middle what she sees fit.
Above is an illustration of exactly how much your Peugeot model may be worth in five years time along with the possible 5% increase in the invoice price of a Peugeot 107 model, so why not protect your Peugeot model with a Shortfall Vehicle Replacement Gap Insurance policy today.
What can Return to Invoice Shortfall Insurance do for your Peugeot?
Return to Invoice Shortfall Insurance can work in partnership with your comprehensive insurer and return you back to the original invoice price you paid for your Peugeot.
Return to Invoice will pay you the difference between your comprehensive insurers settlement payment and the invoice you originally paid for your Peugeot.
Please note that if you were paying for your Peugeot through a form of finance agreement, you will be expected to pay off any outstanding finance that you may be liable for and the remaining funds, the deposit you paid, the equity that you have generated while making your payments is yours to spend on what ever you see fit at the time.
Please see the example below which we have designed to show you how Return to Invoice can protect you, your Peugeot but most importantly your finances:
Jan purchases a Peugeot 308 for £10,000. Three years down the line, she is involved in a motoring accident which unfortunately writes of her Peugeot. Jan contacts her comprehensive insurer and is informed that she will receive a settlement payment of £5,000 as this was the market price of her Peugeot at the time it was written off or stolen.
Without any form of Gap Insurance protection, the £5,000 Jan receives from her motor insurance company is the only amount that she would have to be able to purchase another vehicle and/or clear any outstanding finance.
Return to Invoice Gap Insurance would cover the other £5,000 in question in order to return Jan back to the full invoice price of which she paid for her Peugeot model. This will give Jan the ability to clear any outstanding finance and the full balance, deposit and equity is hers to do with what she pleases.
Above is an illustration of exactly how much your Peugeot model will be worth in a number of years time and exactly how a Return to Invoice Gap Insurance policy can help you and your Peugeot model.
Finance and Contract Hire Gap Insurance can pay the difference between the market valuation of your Peugeot at the time it was written off or stolen (which will be paid to you by your comprehensive insurer) and the total outstanding balance you may have on your finance agreement.
Please see the example of Jan and her Peugeot, which we have designed to show you how Contract Hire can protect your Peugeot, but most importantly your finances:
Jan takes out a four year finance agreement to purchase her Peugeot 308
Two years later, Jan awakes to find that her Peugeot is no longer on her driveway
Jan receives a settlement payment from her comprehensive insurer, which is based on the market value of her Peugeot at the time it was stolen
However, even after this settlement has been paid, there is still £2,500 left outstanding and Jan is legally bound to pay this off.
Without any form of Gap Insurance, Jan may have to use her own personal savings to pay this £2,500.
Finance and Contract Hire Shortfall Insurance will pay Jan's finance company the outstanding £2,500 which means that she can walk away with no further financial liability.
Every vehicle can depreciate, no matter what manufacturer is behind it. Motor industry experts say that the average vehicle can depreciate by up to 50% within the first three years of ownership. To put this into context, it is very likely that your Peugeot may lose as much as half of its original value by the time it reaches its third birthday.
We at Shortfall.co.uk understand that no driver wants to hear about Peugeot depreciation, given that they will have just paid a large amount for their Peugeot, then told soon after that up to half of this amount may in theory disappear within the first three years of ownership. However we believe that it important to make you aware of this in order to allow you to put into place the right Gap protection.
On this page we have drawn up a number of examples of Peugeot depreciation. In these examples, we have taken figures from 'What Car', who provide historical and current data in order to predict what your Peugeot can be worth in four years time.
Example 1 –
Peugeot 308 CC 1.6 THP 156 Roland Garros 2dr
Invoice price you paid - £26,055
Year 1 – £14,804
Year 2 – £12,155
Year 3 – £9,979 – You will see that within the first three years, your 308 model has lost £16,076
Year 4 – £8,528 – You will see that within the first four years, your 308 model has lost £17,527
Example 2 –
Peugeot 208 Hatchback 1.0 VTi Access + 5dr
Invoice price you paid - £11,645
Year 1 – £8,000
Year 2 – £6,650
Year 3 – £5,500 – You will see that within the first three years, your 208 model has lost £6,145
Year 4 – £4,774 – You will see that within the first four years, your 208 model has lost £6,871
Example 3 –
Peugeot 107 Hatchback 1.0 Active 3dr
Invoice price you paid - £9,070
Year 1 – £5,875
Year 2 – £4,825
Year 3 – £3,975 – You will see that within the first three years, your 107 model model has lost £5,095
Year 4 – £3,375 – You will see that within the first four years, your 107 model has lost £5,695
Example 4 –
Peugeot 207 CC 1.6 HDi 112 Allure 2dr
Invoice price you paid - £19,645
Year 1 – £9,976
Year 2 – £8,225
Year 3 – £6,750 – You will see that within the first three years, your 207 model has lost £12,895
Year 4 – £5,750 – You will see that within the first four years, your 207 model has lost £13,895
Example 5 –
Peugeot iOn Hatchback 63 5dr
Invoice price you paid - £26,216
Year 1 – £11,126
Year 2 – £9,249
Year 3 – £7,676 – You will see that within the first three years, your iOn model has lost £18,540
Year 4 – £6,651 – You will see that within the first four years, your iOn has lost £19,565
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Peugeot is a French automobile manufacturer and forms one half of ‘PSA Peugeot Citroen’, which is the second largest car maker in Europe. The history of the company dates back as far as the 18th century when the Peugeot family, situated in the Eastern region of France produced coffee, pepper and salt. The company expanded into the bicycle market near to the end of the century and would become well known for its production of the ‘Le Grand Bi’ penny farthing in 1882.
Armand Peugeot would be the family member who would diverse into the automobile market. He designed the company's first car in 1889, which ran off steam. Not as successful as planned, Armand would invest in petrol based cars and would introduce its first model, known as the Type 1 in 1901, which would become the world's first car to be fitted with rubber tyres. Peugeot would go on to name its cars 'Type' with a particular number. By 1910, the company would be well established in the European auto market.
Apart from being taken over by Volkswagen during the Nazi occupation of France during the Second World War, the company unlike other manufacturers was not seriously damaged by the two wars. In 1975, the company would take over French rival Citroen and would form the joint company PSA Peugeot Citroen. Many industry experts argue that the success of its 205 model prevented the company from near bankruptcy in the latter part of the 20th century.
The Peugeot family is well known throughout France for its ownership of Sochaux Football Club, which to no surprise, the company sponsors. Peugeot is also active in motor racing and cycling, most notably with its success in the Tour de France where it has won ten of its competitions, a record which has yet to be reached. The current Peugeot portfolio includes successful models such as: 107, 207, 208, 2008, 308, 3008, 508, 5008, RCZ, iOn, Tepee, Bipper.