The newly relaunched Dacia brand has been making waves in the UK car market over the last few months. When parent company Renault announced the intention of relaunching the brand with a range of 4 cars, the biggest stir caused came with the prices attached to the new models. The new Dacia range were clearly aimed to provide the very best value for UK consumers, and this also provided Renault the opportunity to develop a ‘budget brand’ like so many other manufacturers have done.
Dacia Brand on the move!
The Dacia model range has also won acclaim from the motoring press also, with the Sandero winning the WhatCar Car of the Year 2013 in the Supermini class, no mean feat for a new brand and model.
In austere times car manufacturers can see the market for providing a ‘value’ brand, and providing consumers the chance to buy a brand new vehicle for less than an equivalent three year old model may be for a more established name. The prices for a brand new Sandero start at just £5995, a figure sure to attract those seeking a new vehicle at a bargain price.
However a mix of bargain prices and new models does not preclude the Dacia range from one aspect common to all with vehicle ownership, you are investing in a depreciating asset. All vehicles will suffer from this in one way or another, and this is the reason why Gap Insurance is popular for most UK consumers. However, what may be the best route to take with the style of Gap Insurance for your Dacia?
Gap Insurance choice for Dacia
The manufacturer, or more specifically Renault Finance, offer a couple of solutions for Dacia Gap Insurance through the dealer network. These would be a style of Finance Shortfall Gap Insurance, and the more traditional Invoice Gap cover.
However, a new range and brand could provide several factors that may turn consumers towards the other type of Gap Insurance on the market, Vehicle Replacement Insurance.
The prices of the Dacia range today are very much lower than equivalent models in other manufacturer ranges. However, if the Dacia range becomes popular over a period of time, then we could see the Dacia Price Range increase over the next few years. One example to look at manufacturers like VW, who introduced the Skoda range perhaps as a budget brand a couple of decades ago. As the quality of the product is recognised, and become more popular in the market then the model prices move more in line with other brands on the market, losing the ‘budget’ perception.
Therefore there is every chance that a new Sandero bought at £5995 today, may require significantly more than that figure to replace with another brand new model in even a few years time. If the standard RTI Gap was purchased then this would only provide cover to the original purchase price, leaving you with money to find to provide funds for a brand new replacement. By taking a Vehicle Replacement policy for your Dacia, you could provide cover to the cost of the brand new replacement, and negating the inflation associated with the price of the new vehicle.
Although you may not find Replacement Gap Insurance at Dacia dealers currently, you will find this option at independent Gap Insurance providers who offer VRI Gap.
If you think that the prices of Dacia’s will rise in the next few years, then Vehicle Replacement Insurance may well be the way to go!