Understanding the terms and conditions of any additional financial products offered with your car finance is crucial. Here are steps to ensure you're fully informed:
Asking Questions:
Scrutinizing the Product Information Sheet (PIS):
Comparing Costs:
Taking Time to Decide:
Example:
Imagine you're offered GAP insurance with your car finance. Ask questions like:
By asking questions and reviewing the PIS, you can make an informed decision about whether GAP insurance is necessary for your situation.
Additional Resources:
Remember, taking these steps can help you avoid mis-selling and ensure you only agree to add-on products that you fully understand and need.
Asking Questions:
- Don't Be Shy: Don't hesitate to ask questions about the product, its benefits, and how it complements your existing coverage.
- Clarification is Key: If anything is unclear, ask for clarification until you fully grasp the product's purpose and limitations.
Scrutinizing the Product Information Sheet (PIS):
- Request a PIS: This document explains the product in detail, including its features, exclusions, and costs.
- Read Thoroughly: Carefully review the PIS to understand what the product covers and what it doesn't.
Comparing Costs:
- Explore Alternatives: Consider if similar coverage is available elsewhere, potentially at a lower cost, independent of the car finance agreement.
Taking Time to Decide:
- Don't Feel Pressured: Don't be pressured into an immediate decision. Take time to review the information, compare options, and seek advice if needed.
Example:
Imagine you're offered GAP insurance with your car finance. Ask questions like:
- How much excess would I have to pay with my existing insurance if my car is written off?
- Does GAP insurance cover the full difference between the car's value and the outstanding finance amount?
- Are there any exclusions to GAP cover?
By asking questions and reviewing the PIS, you can make an informed decision about whether GAP insurance is necessary for your situation.
Additional Resources:
- The Financial Conduct Authority (FCA): Provides information on car finance and add-on products: [FCA car finance information link]([[invalid URL car finance explained ON Financial Conduct Authority fca.org.uk]])
- The Money Advice Service: Offers free and impartial money advice: Money Advice Service website link
Remember, taking these steps can help you avoid mis-selling and ensure you only agree to add-on products that you fully understand and need.
