Promoted: How to protect against vehicle price increases

Nobody wants the burden of having to buy a new car if your old one is stolen or written off, and that's where GAP insurance could come in handy...

ALA Gap Insurance

August is traditionally one of the slowest months for new car sales, but 2018 bucked the trend. The August report from the Society of Motor Manufacturers and Traders (SMMT), which represents the industry, shows a whopping 23% increase compared with the previous year.

The SMMT has cautioned that this is a false high, however, with it directly caused by the new World Harmonised Light Vehicle Test Procedure (WLTP).

Developed as a replacement for the old and outdated NEDC emissions and economy test, WLTP imposes a more stringent testing criteria and a greater emphasis on real-world driving.

Any car which had not been through the new test couldn’t be sold after 31 August, leading to car dealers having to heavily discount or pre-register cars to ensure they weren’t left with unwanted stock.

This has meant deals a-plenty for the savvy shopper and naturally made us think about GAP insurance!

When buying a new car, many people will be told about GAP insurance by the dealer – this is usually a Return to Invoice policy which only protects the amount you’ve paid for your car after any discounts from the dealer.

It may not be the most suitable cover for you, and the dealers typically charge a very high premium.

Whether you took advantage of the August offers or just generally secured a great deal on a new car recently, there are a number of reasons to consider Vehicle Replacement + GAP insurance. Not only does it cover depreciation if your car is written off, but it will cover any increase in cost to buy the same car again.

Get a 12% discount on GAP Insurance with ALA by using this code: WHATCAR68

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Should I buy Vehicle Replacement + GAP Insurance?

I’ve bought... a pre-registered car

There are considerable savings to be had on pre-registered cars. Although you’re technically the second owner and it is this which reduces the cost of the car, if the manufacturer increases their recommended retail price this would usually increase the pre-registered price as well.

If your car is written off after a couple of years and you need to buy the same pre-registered car again you could find that you would have to pay more for the same car, and Vehicle Replacement + GAP insurance would cover this increase.

I’ve bought... a new car with a discount

Many car buyers were able to buy brand-new and obtain significant discounts in August as dealers tried to clear stock of cars that don’t meet the latest WLTP criteria.

If you buy a discounted brand-new car which is later written off or stolen, you might not be able to obtain the same kind of deal. You could be left having to pay extra to buy the same new car or possibly downgrading to a lower price car.

Vehicle Replacement + GAP insurance would make sure you have enough money to buy a new replacement car, even if it costs thousands more.

ALA Gap Insurance

Other reasons to buy Vehicle Replacement Insurance

Cost of WLTP

WLTP has imposed a high cost on the manufacturers: Volkswagen estimate costs of almost £900 million.

With the new test also taking 30 minutes (the previous one took 20 minutes) and bearing in mind that “time is money”, these costs could be passed to customers by way of higher prices.


No-one can say for certain how we could be affected by leaving the European Union and/or the European Single Market.

We do know that most of the new vehicles in the UK are imported and we could see the import costs increase, which would undoubtedly see customers paying higher prices as well.

The effect of WLTP on August vehicle registrations can’t be denied and, if you decided to buy a pre-registered or new car recently, you could be affected by any one or more of these factors in the future, especially if your car is stolen or written off. With ALA Vehicle Replacement + you can choose to protect your investment and any vehicle price increases in the future.

Use your exclusive What Car? discount code WHATCAR68 to obtain12% off a new policy with ALA!

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