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Insurance Shopping with Car Buying
Recently, a father and son entered our showroom. They had come in a couple of times before deciding which automobile best fit their needs. They made their selection and purchased a new vehicle for the son. Needless to say, they were very happy, excited and eager to take delivery.
Arrangements were made for the delivery. However, the delivery date was extended a few times. Apparently, the cost of insurance had doubled from the original quote! This sort of thing happens from time to time, but normally the consumer can resolve the issue and the transaction is completed.
In this case the matter was not getting resolved and during conversations with the purchaser, he was told that he had indeed entered into a purchase contract and that he was expected to make the necessary arrangements and pick up his new car.
In the past, similar situations have taken place. However, in the majority of cases, the reluctance to take delivery was the by-product of buyer remorse. After going back and forth and dealing with the issues, we were able to resolve most of the cases to a mutually acceptable conclusion. Unfortunately the positives of purchasing and taking delivery of a new automobile were tarnished by the events.
Consumers: PLEASE, PLEASE bear in mind that when purchasing or leasing a vehicle, there is no cooling off period. When moneys exchange hands and the Purchase and Sale Agreement is signed, unconditionally, both the dealership and the purchaser are committed to the terms of the contract.
Getting back to the case at hand, as the matter wasn't being resolved; I arranged to meet with the purchaser, hoping to lay this matter to rest. What I heard during the conversation was an incredible litany of events that pointed to his insurance broker's misquote of the insurance premium costs. To make matters worse, the insurance broker in question was not new to the consumer, but one that had provided him with insurance coverage for many years.
The insurance quote went from $3,600 initially to $7,200 ' double the original quote when the serial number of the intended vehicle was provided! The reason given was that the clerk in question had quoted for only 6 months.
I am not an insurance expert, but I have never heard of a 6-month quote. The story gets better! The clerk suggested that, if they were to purchase an older car, the premiums would be substantially lower. Again, we are not sure of how much lower, but closer to $3,600.
As the conversation with the purchaser continued, he told me that there was nothing he could do. His wife didn't drive and therefore by purchasing a second automobile, the son, would be the principal driver, as the family now had 2 automobiles and two drivers.
The father was extremely upset. He had promised his son a car, had selected and purchased it, but because the insurance was too expensive for the family budget, he couldn't keep his commitment. I asked him if, at any time, the quote had been provided in writing. The answer was no.
Buying an automobile should be a positive experience. It should be fun, memorable and exhilarating. However, consumers at times get caught up in the moment and don't do their homework. Once you select the brand and model of automobile, get a quote in writing from a reputable insurance broker.
Remember, if you lease an automobile, you cannot take delivery until the insurance coverage is confirmed. And if you purchase an automobile, the vehicle cannot be licensed without insurance coverage. Save yourself the hassle ' arrange for the coverage as soon as you decide on the make and model of the vehicle.
As for the father and son, we made arrangements to refund the deposit. We truly believed that he relied and reacted on the information provided by his broker.
So please . . . if you have never been insured, are under the age of 25, or don't know the classification (for insurance purposes) of the automobile you're interested in, obtain written quotes prior to committing.
Until next week, please DRIVE SAFELY.
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