TheGest

I'm going to go ahead and cancel those polices because im not needing them, but they added them to my contract already. Is it still cancelable?

Ztalker

all you need is to call the finance manager at where you bought the warranty, fill out some papers and your prorated refund check will be in the mail. Takes at least a month to get your hard earned money back.

TheGest

will they make me come in or they can fax it to me.

DavesZ#3

iTrader: (26)

Call them and find out. Afterall, they're the ones that are going to be doing it (or not).

dkmura

iTrader: (64)

Since you signed the contracts on them, I'm not certain you can cancel them. They are mostly all profit for the dealerships (unless your bank made you purchase the gap insurance). You need to look over the contracts for both policies and read how to cancel the policy. Sometimes a penalty is involved and you may want to contact the company directly to get an answer.

zand02max

iTrader: (22)

Uhm, if you have a lien, the $ goes to the lien holder!

Its also prorated, in other words you get fukced! Also some warranties, ie, extended wheel/tire warranty and some others are not cancelable!

bofa

iTrader: (23)

Yes you can usually cancel at any time (assuming there's still time left for the contract) and he ^ is correct.. if it's financed, the $$ goes to the lienholder, not you. You only get a check if thecar has been paid off/traded in/totalled (I've had all three reasons with separate cars unfortunately )

MeetJoeAsian

You can cancel your service contract at ANYTIME during the coverage period and they will pro rate and send the refund to your lien holder...Unless if your vehicle is totally paid off (which means your GAP ins. is no longer available), you won't be getting the back to you.

davidv

iTrader: (2)

GAP is auto insurance. Don't you conatct your insurance agent to make insurance changes?

zand02max

iTrader: (22)

Gap is normally sold by the finance company or the dealer.

davidv

iTrader: (2)

They were added to your purchase contract before you signed it. Why buy stuff that you don't want or need, then try to cancel it?

bailey bill

The gap insurance actually protects the finance company. They may not let you drop it.

bill

davidv

iTrader: (2)

So you pay a couple extra dollars/month, and the lien holder uses a second party insurer? That sucks.

AFKGuy

iTrader: (41)

I just came back from the dealer and cancelled the extended warranty that was in my contract but decided to keep the gap insurance. I got the car last friday, if it matters.

MeetJoeAsian

GAP (Guarantee Asset Protection) insurance is your best friend if you are not planning to put a lot of money down or if you're rolling in negative equity or heck if you're buying a domestic car...haha...just in case your car gets totalled (due to theft, accident, or anything), if you do not have GAP, you will owe thousands of dollars to your lien holder without having a car...GAP insurance will really cover the "GAP" between
what your insurance will pay and your payoff....and it is NOT REQUIRED by the banks...dealerships will tell you otherwise, but it is NOT required by the banks...some bank leases (Chase) will include GAP automatically, but it's part of their financing package...and also, the price for GAP insurance is regulated by the states, not by the dealership...so you can not get ripped off from the dealership marking it up, cuz they can't.

TheGest

did you have lien on the car

Fooshe

iTrader: (42)

Meet Asian Joe is dead on. GAP coverage is a good thing to have until your loan balance is equal to you car's value. Gap is sold by the dealer, sometimes included by the finance company (or at least offered by them) and by some auto insurance companies.

David V is actually mistaken, it is not auto insurance, it is coverage to make up any shortage if your car is a constructive total loss or total theft. The GAP coverage pays the lienholder the balance of what is not paid to you by your insurance company in the event you are upside down in your vehicle.

While I'm sure David V is trying to be helpful, he is also mistaken about who it protects...it protects you! If your car is totaled or stolen, you still owe the pay off. The lender knows most people won't screw up their credit for a couple thousand dollars...especially when they are clearly and legally liable for it.

By the way, SB1218 (I think that is the number) allows a consumer to cancel a purchase contract and get a full refund if it is done within a specific period of time (I believe 30 days) from it's inital purchase as long as the warranty coverage has not been used. The fourm is right, if you have a lienholder, they will send the balance due to them and not to you...the good news is, you can calculate how many payments the amount is equal to and that is how many less car payments you will have to make!

bailey bill

While I suppose there could be some legitimate debate about who is actualy "protected", GAP insurance benefits are paid to the lender, so he is assured he will NOT be left with a deficit in the event of a total loss. Owner/borrowers often become a little disenterested in paying off the balance on a vehiclce they no longer have.

It may protect the buyer against a default judgement, but it really means the lender will get his money in a timely fashion without having to file any proceddings agains the owner/borrower.

bill

davidv

iTrader: (2)

Thanks for the clarification.

MeetJoeAsian

Is it a benefit to have good credit for a buyer? I think so...there is a HUGE difference when going to a dealership and trying to buy a car that just came out and have the dealership tell you you can't purchase the vehicle because you have BAD CREDIT...and then they switch you to a used car (most times a Ford Focus, Chevy malibu, Cavalier, etc...what I call "SPECIAL FINANCE" cars) with an 18% interest rate. Well, your response to this may be "HA, if they give me that, I'm gonna go somewhere else"...well, it's not just that dealership that's doing that to you, it's ALL dealerships...sometimes buy rate from secondary lenders is 18% and add to that a $1000 fee to buy a loan, the dealerships will NOT sell you the car if it's gonna cost them money...

GAP pays directly to the lender in the case it happens because paying to the borrower sometimes means the lender will never see the money.

I've been in the car business for quite awhile, and I get GAP insurance on my vehicles if I don't put the 5 grand down because we all know the moment you drive the car off the lot, you automatically lose several thousand bux...now imagine driving the vehicle off the lot and your car gets TOTALLED half a block down the road...your car is now worth at LEAST $3000 less than what you owe (remember TAX, TITLE, LICENSE FEES plus DEPRECIATION), and now you owe a balance to a lender and literally have NOTHING to show...and so you go back to the dealership and try to buy a new car, and then you have to roll that negative into the new vehicle and now your payment is much higher than previous.

It's true that what I said above doesn't happen everyday, but it does happen. I hate seeing good people coming into the dealership and they have everything perfect on their credit, but their car credit is sh*tty because their cars were totalled in an accident and they had negative equity that they couldn't afford to pay off. A car "REPO" or "LOSS/PROFIT WRITE OFF" on your credit can haunt you for years to come, even if you have perfect credit card payments.

Bottomline is, buy GAP insurance if:
1. you are not putting down at least 20/25% of the vehicle
2. you are rolling in negative equity from a trade
3. you are financing extended terms (ie: 72 months or longer)
4. you are buying a used car that is quite a bit over "loan" value
5. you are buying "most" domestic vehicles