94tbird

My manager told me today about something called GAP insurance. its not a company. he basicallly explained it to me like this

Ne1 ever hear of this?

cdemot02

Yeah. I think it is a good deal, but then again being in the car business I probably have a biased opinion. I didn't get it because I buy all my vehicles at d-plan, but If you are paying over invoice it can be a good deal.

94tbird

well i got x-plan price. it seems to be a good deal though. ne idea on what it costs?

holderca1

Thats not quite right or at least maybe I read it wrong. Gap insurance covers the diffence in the book value and the amount of your loan at that moment. It doesn't pay the interest over the period that it would be collected if it went the full term of 5 years or whatever length you set up. Typically new cars depreciate the quickest in the first two years and often will have values less than what your payoff will be.

Mustang69-05

Its usually not too expensive. If your financing for 5 years it may be worth the money to get. A few of my friends have had to use it and if they didn't have it they would have been in the hole like 5or6k. Hope ya never need it though!

steve19970

Mine was 500 bucks...I paid for it. The salesman made a good point to me. He said that if he were to get it for ANY car, it would be this one. With limited availability and high demand, all I need is for someone with sticky fingers to put me "upside down."

Giddyup

So, GAP insurance is something in addition to the regular car insurance..... so you have 2 insurances? Is the GAP insurance something you pay every six months like typical insurance, or is it a one-time charge?

ponyboy66

It took me a couple of minutes to figure out what this meant.
I am old.

Anyway, If possible, put enough money down to compensate for the depreciation.
I have never gotten it. I've always looked at it kind of like the extended warranty they offer you at Best Buy. Maybe the lender requires it..........??????????

Martimus

Payment of the GAP insurance is basically a lump sum payment when you purchase the car. Personally I think its a worthwhile investment (especially when some yoyo wrecks your car!). :worship:

nynvolt

Gap is only about 5-600 bucks, money well spent if you get your car totaled and are upside down on the loan. New cars get totaled very easily since they crumple like paper to keep you safe.

If you owe say 30 grand, but the blue book on your car is $25,000.00, gap will pay the differance, so you will be completely paid off. A friend of mine had his Civic SI stolen and completely stripped, he had to pay $3500.00 for a car he no longer possesed. Not to mention poney up for a new car.

It's a gamble but $600 for that kind of piece of mind is well worth it to me. My 2003 got hit 3 months after I bought it, wasn't my fault. They should have totaled it but fixed it anyway. But had they totaled it I would have been in the hole quite a bit.

I highly recommend it.

smallpurpleants

I agree.. it is a good deal- I found out about it a few years ago and would NOT do without it.. especially since it only cost pennies a day

Stubbies

One thing to take into consideration is how much you owe at the start of all of this. If you come in, pay like 1,500 over invoice, and have a 1,000 down, then you most definitely want Gap coverage for the above reasons.

My situation was a bit different. I paid 1,000 over invoice, but my total down payment was 6,000. I start the life of my loan up by 5,000 compared to the cost of the vehicle. Even though the car is going to depreciate, it's not going to be by that much, so Gap coverage for someone like me really isn't worth the money. Gap only covers the difference between what is owed and vehicle Fair Market Value at the time it was totaled. If the values are the same, or the FMV is MORE than the loan cost, Gap is worthless.

rex

Ron...94 Tbird...please spell out your words...your codes are very annoying... :nono:

holderca1

If you finance through USAA, you get free GAP insurance.

OSUstangfan

i got gap insurance throught my bank for $199

Giddyup

I paid cash for my Mustang...... so GAP insurance is only necessary/available on a car that is financed, right??? EDIT: Oops, my bad.....I see my question answered in a previous post.

94tbird

what codes what are you talking about?

rex

Your spelling for cripes sake....

94tbird

ok spelling police. i got my idea across thats all that matters. i dont sit here n make sure i type everything correctly. if its a big mistake ill fix it and i dont proofread what i write. if its that big a problem why dont u rewrite the code for the forums and add a spell checking option in that doesnt allow you to post unless ewverything is spelled correctly or better yet, every post is proofread by you perosnally and you can decide if its spelling and grammar are worthy of being posted!

rex

To use your language....u r a more on
For goodness sakes let's all use normal language and proper spellling on this site. We all make occasional mistakes, but some peoples lack of concern by their consistant use of poor spelling makes it very hard to read, it's rude and it has no place in everyday intelligent conversation.