Sorry but I would have to you if I give up my secret, lol (btw...it was a legal way). When you tell a salesman that you are shopping for 2 cars and have good offers from their competitors they will do whatever they need to do to sell those 2 cars. Bottom line... Gap ins. is good depending on the situation.

 

I go it added to my loan, $600 bones no biggy

 

i'm an insurance agent and i would recommend gap insurance. just don't buy it from the dealer, they charge way too much for it. most insurance carriers can add gap insurance when you add your vehicle for coverage. it's only about $6-9 every 6 months depending on the vehicle.

 

I have GAP insurance on my Z.

 

If you have the cash in the bank to pay off two new cars, in-full, in less than 2 years then you are the exception to the rule and certainly don't need GAP insurance. Most buyers finance the near full amount of the vehicle and find themselves insuring against depreciation.

20% is a good general rule of thumb that shouldn't be overlooked as it protects the buyer from depreciation and typically helps get you the best interest rate. It also ensures that you are not overextended on your purchases from a budgeting standpoint.

Sorry to use you as an example Stein...but paying $600 for GAP and then financing it is just double crazy.

 

$1000 for gap.

The only reason it is so high, is because of the price of the car. The higher the price, the more you pay on GAP.

 

Shouldn't make blanket statements like that. I put zero down on my ZO6 and had it payed off in 4 months. Guess I couldn't afford it, eh?

 

Unless you are buying a car worth 100k or more, I can't see why you would have to pay 1k for GAP.

You didn't buy from the dealer, did ya?

 

I have to agree in part with your statement. My case might be an isolated one but I didn't plan on paying the cars off in 2 yrs. Part of the deal was that the dealership paid for the Gap ins. and it took me 3 days to finish the deal because I wanted to make sure they were not hiding the charges somewhere else. Pretty much my point was... you don't have to give 20% down in order to afford a vehicle and gap ins. is not for suckers....

 

Obviosily I bought it from the dealer. See Signiture. But you can not get GAP unless its on the new car loan added with the car.

Like I said again, The more the car is the more the gap is. Also the more you transfer upside down onto the new car it will add more to the gap cost.

 

Meh. My post was within the context of the OP's question regarding GAP insurance...your post=not so much.

 

+1 And of course this is only if you own more than the retail value of the car would be. Some of us that put a large % down wouldn't need this. In Calif if your car is wrecked the insurance company is bound to fix it or replace it.
So, no gap insurance would be needed in that situation.

It gets sticky on total losses. You might end up fighting with the insurance company. That's when you need a lawyer. The last total I had was 944S and it was 6 months after I bought it. Insurance paid it off completely. The laws haven't changed in Calif on this but, the insurance companies came up with Gap insurance. Go figure.

If I lease a car I'd get Gap Insurance. Or, if I put a low down on a car. Just to make sure. It's only $6-7 every six months so it's worth it not to fight with insurance companies. It's a racket but, not one that is fun to fight. Insurance companies are just as bad as lawyers. It's never fair imo. They both try to get the most out of each situation. I do not believe unless you push insurance companies do you get a fair settlement. At least, in my experience.

Oh and let's not talk about uninsured motorist claims. I haven't even seen them try to recover from an uninsured motorist. They say it not worth it to them. Ah.... then, there goes your deductable. In small claims court I could at least get all the damages back. The insurance company is supposed to go to bat for you. Ha !!!

 

You can not purchase GAP insurance afterwards. You can only get it when you purchase the car through the dealer on the original loan.

 

Technically its...Financing is for suckers (intrest fees) and if you can't pay it in full, you cant afford it.

 

He has a point.

 

True. True. Borrowing money to buy a depreciating asset is for suckers.

 

But you do not have to purchase the GAP from the dealer. The dealer route, is in most cases, the most expensive option & can be found cheaper via 3rd party companies.

 

Well when I bought my 2007 the dealer offered it to me(even though I was not going to buy through them) AND my bank offered it to me. My insurance company(state farm) tried to have me finance through them and offered it to me free as part of the loan.

You may be right though that you cannot buy it AFTER the loan is "closed"

 

Your state must be different than mine then.