Depreciation is something that all motorists need to worry about. If you’re buying new, then the problem is even more pressing, as the effects of depreciation are at their most acute during the earliest part of a vehicle’s lifespan. Just about everyone’s heard it said that a car loses several thousand pounds in value from the moment that it’s driven off the forecourt.
Depreciation is driven by a variety of factors. Among the most significant of them is the desirability of the car in question, and its potential to become a ‘classic’. Luxury brands like Mercedes tend to depreciate quickest, as what’s in style one year might be supplanted by something new in years to come. This danger is especially considerable in the modern age, when the looming shadow of the electric car threatens to wipe out the value of a modern high-end estate in a matter of years.
Depreciation-analysing website CarEdge claims that a three-year old Mercedes represents the best value, with just under 40% of its residual value having been scythed away by depreciation.
What’s GAP Insurance?
Guaranteed Asset Protection (or GAP) insurance is a means through which motorists can protect themselves against the effects of depreciation and theft. With a conventional insurance, a driver could purchase a car, and write it off just a few hours later. In such an instance, they’d be covered against the value of the car at the moment it was written off, rather than against the purchase price.
In the case of a high-value car like a Mercedes, this difference can be a significant one. And if the vehicle in question has been purchased using finance, it can leave the motorist in question in a sizeable amount of debt, secured against an asset that they no longer own.
If you’re looking for Mercedes GAP insurance, you’ll find it from reputable providers online. The product is one that will appeal in particular to certain sorts of motorist. If you’re buying your vehicle on finance, then you’ll benefit from the extra protection on offer. If you’re buying new, then it’s especially worthwhile – but even if you aren’t, you might find that the protection you enjoy makes the cost justified. If you think that you’re likely to be a victim of crime, similarly, then investment in GAP insurance might be enough to provide you with peace of mind.
On the other hand, there are other kinds of motorist for whom the price of admission might be more difficult to justify. Before handing your money over, it’s worth taking stock of what’s being offered, and whether or not GAP insurance suits your circumstances. If you’re aiming for a Mercedes, then the chances are that the figures will add up.
Founder Dinis Guarda
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