Amongst customers in recent years, the popularity of GAP insurance has grown significantly. Quite rightly, FSA registered dealers are leveraging this incremental and valuable revenue source by marking-up the product.

And, in my opinion selling GAP insurance at the point-of-sale is absolutely the right place.

Fully trained dealership sales staff are on-hand to ensure this product, with its increasing complexity, is fully explained so that the customer can make an informed purchase.

However, there is a real danger of “gilding the lily” if unrealistic mark-ups are applied.

I am old enough to remember how used car warranties were subject to unrealistic mark ups by a minority of dealers to value shift with the net result that VAT and the higher rate of IPT matched.

The potential to increase penetration of GAP products at the point-of-sale remains substantial, and we should avoid sales being lost to the internet providers, or the emergence of further regulation.

I congratulate the dealer channel on their approach to sensible retail pricing, and applaud their structured sales approach.

It would be a real shame if a very small minority of dealers spoil this valuable customer service for the rest of the market.