If you recently bought a new Peugeot, you could be driving on a financial time bomb.
A bold statement you might think? Definitely, though not without foundation, as Peugeot tends to depreciate as much as most other mass-produced cars and, on certain models, lose value like a stone.
Have you considered what your new Peugeot would be worth after 6 months on the road?
Well here’s the deal!
For example, a shiny new Peugeot 308 costing £18,500 at showroom retail prices would be devalued by over £3,000 in a matter of minutes due to the VAT element within the original purchase price. Coupled with 6 months of depreciation at about 2% per month, your new pride and joy just lost over five thousand dollars for the next plate change.
You may think so what, I don’t plan to sell my new Peugeot after only 6 months!
That may be the case, but what if some other careless road user hits you and writes off your car, or a light-fingered car thief decides to take your car without asking, resulting in a full write-off? In both cases, you are left with the possibility that your insurance company will do what insurance companies do and pay you the current market value of your car, which could be much less than what you paid when it was new.
So what can you do to protect your investment?
You can take out comprehensive insurance that has a new for old clause. There are some insurance companies that provide coverage for depreciation, however, with auto insurance premiums rising as they have recently, most consumers are looking for the best insurance quote and rarely stop to consider such facts.
You can expect your car not to be stolen or written off due to accidental damage. Statistically, there is a good chance that you will experience the unpleasantness of an insurance claim based on current levels of vehicular crime and the propensity of insurance companies to write off vehicles today due to the high cost of repairs.
You might also consider taking out a differential insurance policy for your Peugeot, such as a Bill Refund Policy, which would pay you the difference between the insurance company’s valuation at the time of loss and the full bill price of your new Peugeot. Peugeot.
With current levels of car depreciation and the increasing risk of your car being written off, gap insurance It should be on your shopping list when buying a new car.
