What happens to Finance when the bike get written off??

Discussion in 'Off Topics' started by ttboy1988, Jun 2, 2011.

  1. ttboy1988

    ttboy1988 Member


    Ok, most likely the bike is gonna get written off, So i need to know whats going to happen to the finance.

    bike with accessories was £2600

    I would be happy if i got like £2400 (would be able to pay 95 % of finance)
     
  2. Codemonkey

    Codemonkey Member


    If you didn't have GAP insurance, you'll be left to pay the outstanding debt. I suspect the insurance company will pay you, then you can either go buy another bike or pay them off.

    So, you owe 2600, insurance company pays you 2400, you can pay finance company 2400 and you still owe them 200.

    If you have GAP insurance, they pay out the remaining £200.
     
  3. ttboy1988

    ttboy1988 Member


    Whats Gap insurance ?
     
  4. ttboy1988

    ttboy1988 Member


    Crap, just googled it , never knew this even existed ........................
     
  5. Codemonkey

    Codemonkey Member


    Its insurance for when your vehicle gets written off.

    Lets say you go buy a new bike for £4K

    You write it off.

    Insurance says, yeah, but its not brand new now, most we'll pay out is £3K

    You are now left with a £1K gap if you want another new bike. Thats what the gap insurance would have paid out should you have taken it out. They pay the difference between the invoice price (what you paid for the bike) and what the insurance company pay out in the even of a total loss claim (writen off bike).
     
  6. ttboy1988

    ttboy1988 Member


    I they pay me the money, i will get a r125 with the money, while keep on paying the finance,
     
  7. ttboy1988

    ttboy1988 Member


    cheers like i said this is news to me, I am so annoyed now
     
  8. mrwhite

    mrwhite Member


    This is what I'd like to do. Maybe trade the bike in, get the cash in hand and buy something older (car/bigger bike?) and keep paying the finance. I've budgeted my monthly cashflow to pay off for 3 years, so it works out as me being up, in a way.
     
  9. ttboy1988

    ttboy1988 Member


    Good idea, might spend the money tests and just get a nice cheap 250 cc, cos i will have to do a trip from birmingham to surrey.

    NO CAR, not going down that route a unless i am on big buck salary
     
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