HPI Guarantee - a scam?

[Spinal]

A thing hit me today... hpi offer some guarantee with their checks; so if anything goes wrong, they cover you for £30k or so.

That said, if you buy the car for 30% less than "market value" the guarantee doesn't apply.

The "market value" is their internal market value... which for the last 4 cars I've bought, has always been at least twice the going rate for average condition cars.

E.g. the W202 I picked up today to use to get to work and in banger challenges, they valued at £1500. I doubt anyone would pay £1500 for a W202 with 110k miles on the clock and no service history...

Another company (text hpi or something like that, I use them to get an idea as to wether I should bid - as they cost £3 instead of £20) valued it at a more reasonable £540...

Previous car (ford probe) bought for £250 or so, they valued at £800.

The one before that (nissan vanette) bought for £450, they valued at £1600... (white hat rally - known as "the vanbulance")

Is it just me, or does this seem suspicious?

M.

 

[davidjpowell]

I often find the guides pretty inaccurate.

Even more so I suspect at the bottom end of the market where condition will skew heavily the value.

 

[Spinal]

I understand that as most of my cars are bought for banger challenges that they wont be on the higher end of the scale... but surely the estimate should be an average and not a pristine condition vehicle?