Buying a car. Dealer asking if I want an RTI (Return To Invoice).

dingbat

Hi. In summary - is 600 quid or so for a three year RTI something I should be doing?

useless

RTI (also known as gap insurance) is a great concept, but it's priced very expensively. The insurance risk is very low on this stuff so the dealer has a fat margin. Your own insurance company may offer 'new for old' if you total the car within a year of buying it, so in that case you're really only getting two years of value for three years premium. See if you can get 100-200 off that price, or get him to throw in something else into the deal.

Atlantic Dawn

I'd like to see the small print of what conditions it covers you under, likely a minefield. Some insurers will give new for new replacement in the first year you own a brand new car so in theory you may only be getting 2 years with this, I know Liberty do this.

bazz26

Another add on product dealers like to upsell these days. That and paint protection/sealant.

High level, RTI is an additional insurance policy against depreciation if your car is written off during the term. With your normal insurance they will only pay out the current market value if your car is written off. The RTI insurance company will then pay the difference between the current market value and the invoice price of the car at time of purchase.

Is it something you should be doing? That is entirely up to you but make an informed choice by reading up on the policy documents as the devil is usually in the details of the terms and conditions. Plenty of margin in these add on products for dealers so try to negotiate on the price if you decide to take it.

dingbat

https://www.boards.ie/discussion/comment/119463357#Comment_119463357

Yep - the protection pack was the other thing they asked me about

bazz26

The paint protection is a waste of money imo. Better off spending the same money and bring it to a professional detailer.

useless

https://www.boards.ie/discussion/comment/119463397#Comment_119463397

You took the words out of my mouth😀 Exactly this.

remoteboy

Digging up an old thread but currently in the process of buying a second hand car off a dealer and have been offered RTI (and Paint protection and interior protection). I presume, whatever about getting it on a new car, it’s completely pointless on a second hand car?

thebiglad

https://www.boards.ie/discussion/comment/122030499#Comment_122030499

Depends on cost of the RTI policy and then down to the cost of the car and amount you expect it will depreciate over the term of the insurance period and, if you are buying on finance (as usually interest is front loaded) so, as the car depreciates for payment in the event of a total loss you will not receive sufficient to cover the outstanding finance from the insurer.

RTI can be good value in the rare event of a total loss of the vehicle but, as with all non-compulsory insurance its the gamble whether you just take the risk yourself or pay someone else too.

As the car is 2nd hand take a good look at the policy terms and conditions and exclusions as, it probably will not be as straight forward as a policy on a new car i'd expect.

No comment on the other protections but, I get the impression from other threads i have read that will not receive a positive response.

remoteboy

Thanks for that. Finance is 0% so no interest to worry about. RTI is 600 over 3 years. So pricey enough. Probably worth talking to my own insurance company to see what they’d charge for extra cover.

I’ve no interest in the other forms of protection tbh.

thebiglad

https://www.boards.ie/discussion/comment/122030735#Comment_122030735

Your insurance company won't do it, your car will be insured for its market value, which, typically should be close to the price you paid or the car's replacement cost for an equivalent model at age, condition and mileage - if you don't have finance or the depreciation rate of a new car to contend with then 600 euro for a product you are unlikely to use is not worth it but, that's the fact for any insurance, its expensive unless you use it!

If you are buying a 2nd hand Audi R8 for 80k which will depreciate significantly then, that's a different matter but then your premium wouldn't be 600!

The profit margin on RTI products is massive - despite the fact the dealer will receive a significant commission (they should disclose to you what this is), then there is insurance tax before the balance goes to the insurer.