Tell me about Gap Insurance
#3
gap insurance is almost a must these days........here is how it works basically
say you buy a Tc, and then total it..........the insurance you have may only pay off the actual value of the car,, and not what you currently may owe.
say next year you total the car, the value of the Tc with depriciation books out at 15,500 but you still owe 17,500 gap insuance will pay that difference you owe. these are hypothetical figures, but i highly recomend it.
basically with finacning these days unless you put down 20% you will always be what they called "flipped" . meaning owing more then the car is worth.
i would get it....its worth it, but if your financing through your bank should offer it, and its less usually.
also an extended warranty, that might be worth it too if you plan to keep the car longer then the 3 year/36k factory.
say you buy a Tc, and then total it..........the insurance you have may only pay off the actual value of the car,, and not what you currently may owe.
say next year you total the car, the value of the Tc with depriciation books out at 15,500 but you still owe 17,500 gap insuance will pay that difference you owe. these are hypothetical figures, but i highly recomend it.
basically with finacning these days unless you put down 20% you will always be what they called "flipped" . meaning owing more then the car is worth.
i would get it....its worth it, but if your financing through your bank should offer it, and its less usually.
also an extended warranty, that might be worth it too if you plan to keep the car longer then the 3 year/36k factory.
#4
I know its generally not a good idea to get anything from the dealer... I know you can shop around for a bunch of things like extended warranties, so I don't see why you can't get GAP insurance out of the dealer.
GAP insurance is good if you have financed your car for say 5 years.
If you total your car before 5 years, the insurance will only pay you for the value of the car at that time, and as with most cars, the value drops 4-6 grand the moment it rolls out of the lot.
GAP prevents the scenerio where you total your car, you get insurance to pay you for it, but you still have to get money out of your pocket to pay the remaining balance on the loan. Its up to you... my friend didn't have it and had to pay up when someone else smashed his car while it was parked on the side of the road.
GAP insurance is good if you have financed your car for say 5 years.
If you total your car before 5 years, the insurance will only pay you for the value of the car at that time, and as with most cars, the value drops 4-6 grand the moment it rolls out of the lot.
GAP prevents the scenerio where you total your car, you get insurance to pay you for it, but you still have to get money out of your pocket to pay the remaining balance on the loan. Its up to you... my friend didn't have it and had to pay up when someone else smashed his car while it was parked on the side of the road.
#9
i got it. your dumb not to... it was an extra 250 threw toyota, and i figured if anything happens, i want to be covered, and not total a car, and thenhave to worry about coming up with 2-3k to pay it off.
GET IT.
u never know
GET IT.
u never know
#10
Originally Posted by shawn30
i did a trade-in and was 3500 upside down
i got gap ins when i bought the tc
if something happened would the gap ins. cover the entire loan?
i got gap ins when i bought the tc
if something happened would the gap ins. cover the entire loan?
YES, Gap covers what your insurance wont...
So with GAP, your 100% coverd
#11
get it no matter how good of a driver you are...
see I wasnt that good of a driver, pushing the limits too much,
7 month old brand new tC into a telephone pole and I wouldve been screwed for about 3-4k if I didnt have gap.
~$240ish through my credit union, I would never buy a new(ish) car and not get gap
see I wasnt that good of a driver, pushing the limits too much,
7 month old brand new tC into a telephone pole and I wouldve been screwed for about 3-4k if I didnt have gap.
~$240ish through my credit union, I would never buy a new(ish) car and not get gap
#12
Originally Posted by jasonbegin
Originally Posted by shawn30
i did a trade-in and was 3500 upside down
i got gap ins when i bought the tc
if something happened would the gap ins. cover the entire loan?
i got gap ins when i bought the tc
if something happened would the gap ins. cover the entire loan?
YES, Gap covers what your insurance wont...
So with GAP, your 100% coverd
#13
Originally Posted by shawn30
Originally Posted by jasonbegin
Originally Posted by shawn30
i did a trade-in and was 3500 upside down
i got gap ins when i bought the tc
if something happened would the gap ins. cover the entire loan?
i got gap ins when i bought the tc
if something happened would the gap ins. cover the entire loan?
YES, Gap covers what your insurance wont...
So with GAP, your 100% coverd
your a little slow huh.
#15
i got it. your dumb not to...
Granted, if you're trying to buy with 0 down, it's not a bad thing to have, as it will save you if you're upside down in your financing, but as long as you make a decent down payment, it doesn't really gain you that much either.
#16
I put 3000 down and still got the GAP Insurance. (Better safe than sorry!!)
I learned the hard way w/ my Honda Civic after it was stolen and never recovered after 2 1/2 years of my loan. The insurance company only paid for 75% of the value and I got stuck with paying the 2700 left on the loan for a car that I did not even have anymore. Belive me, paying for something you dont have is the worst feeling you can have....
I learned the hard way w/ my Honda Civic after it was stolen and never recovered after 2 1/2 years of my loan. The insurance company only paid for 75% of the value and I got stuck with paying the 2700 left on the loan for a car that I did not even have anymore. Belive me, paying for something you dont have is the worst feeling you can have....
#17
Originally Posted by Atreyused
I learned the hard way w/ my Honda Civic after it was stolen and never recovered after 2 1/2 years of my loan. The insurance company only paid for 75% of the value and I got stuck with paying the 2700 left on the loan for a car that I did not even have anymore. Belive me, paying for something you dont have is the worst feeling you can have....
In Texas, GAP insurance is state-regulated, so the cost is based on the amount financed. For any given Scion, it's usually less than $300. But sometimes, if you have a large down payment, the lender might automatically kick it out of the deal, so double-check your paperwork.
#18
Originally Posted by jasonbegin
Originally Posted by shawn30
Originally Posted by jasonbegin
Originally Posted by shawn30
i did a trade-in and was 3500 upside down
i got gap ins when i bought the tc
if something happened would the gap ins. cover the entire loan?
i got gap ins when i bought the tc
if something happened would the gap ins. cover the entire loan?
YES, Gap covers what your insurance wont...
So with GAP, your 100% coverd
your a little slow huh.
i was just checking cause it seems to easy to commit some sort of fraud
#19
Originally Posted by TongMan
this insurance is only available for new car purchases right?
To be honest, I can't believe people don't buy it. Even if you put 3K down on the car, the value of said vehicle can vary drastically by how many miles you do, etc. and you will be upside down very quickly typically. Most cars drop $5K in value in the first year.
Now, the values the insurance companies use are different than say trade value and stuff, but I just wouldn't risk it. I've had to argue with an inusrance company once already, and once was enough.
At $42/yr for my gap insurance on my tC (financed $17,000 ish with an extended warranty) it seem like a no brianer to buy it.
My friend just crashed his 2004 Focus SVT, which the values have dropped like crazy. He had the car about a year (found a leftover 2004), put 18K miles on it.
His gap insurance saved his but, and on top of it they actually paid him $1000 extra towards the purchase of his next vehicle (part of his gap coverage). Not sure what the gap cost him, but he was sure happy to know everything was taken care of, especially since the accident wasn't his fault.
Paul G.