by "promoted by the color red" (whenindoubtflatout)
Published 06/17/2017 at 00:28
by "promoted by the color red" (whenindoubtflatout)
Published 06/17/2017 at 00:28
No Tags
STARS: 0
A quick show of hands, anybody have GAP insurance on their car?
I made a sizable (like 20-25%) down payment on the Miata and I’m tempted to cancel the GAP insurance since the car is worth more than the loan (per KBB anyways).
Think I should do it?
"Nothing" (nothingatalluseful)
06/17/2017 at 00:33, STARS: 8
No. If your car is worth more than the loan value, it’s 100% not needed.
"themanwithsauce - has as many vehicles as job titles" (themanwithsauce)
06/17/2017 at 00:46, STARS: 0
I did the same thing. Put down a sizeable down payment and never bothered with GAP.
"Eric @ opposite-lock.com" (theyrerolling)
06/17/2017 at 01:02, STARS: 1
Get it if your LTV is high. Also, get it from your insurance company for like 1/10th to 1/30th what the F&I guy will try to sell it to you for.
"wafflesnfalafel" (wafflesnfalafel1)
06/17/2017 at 01:31, STARS: 0
ditch it - the only time that product will pay out is if you are up-side-down on the loan. If you put down a sizeable down payment then it is absolutely worthless.
"MyJeepGetsStuckInTheSnow" (myjeepgetsstuckinthesnow)
06/17/2017 at 05:06, STARS: 0
Yep. Put $0 down. Cost $250 one time fee though my credit union. 12 months and 9k miles later I am no longer under water but since used car prices are dropping fast glad I still have it.
"JawzX2, Boost Addict. 1.6t, 2.7tt, 4.2t" (jawzx2)
06/17/2017 at 07:49, STARS: 0
depends on the loan and the car... Gap insurance paid off on my first new car purchase when my then-girlfriend got our 2003 Hyundai Elantra pulverized by a snowplow... I have bought it every time since, but not needed it again. I’m still ahead of the game on cost, since it paid out nearly $2500 on the Hyundai... But YMMV.
"KusabiSensei - Captain of the Toronto Maple Leafs" (kusabisensei)
06/17/2017 at 09:06, STARS: 1
I had mine on the Mini through my insurance company (rather than the finance company). They called it “New Car Replacement” but one of the things the coverage did was to pay off the amount of the loan is it was larger than the total loss payout.
If you car is worth more than the loan value, you don’t need it. My insurance company only offers it for the first two years, which under normal circumstances is enough to get above water on the loan.
"Quadradeuce" (quadradeuce)
06/17/2017 at 10:22, STARS: 0
Nah, as long as you have a decent down payment and a term of less than 5 years, you should be fine. I’ve never sold a car unless I’ve had it paid off, so it never occurred to me to get Gap insurance. How long do you plan on keeping it?
"DrDDay" (drdday)
06/17/2017 at 10:54, STARS: 0
I have GAP just because it was free on my lease and isn’t something that I am able to cancel.
If the car is worth more than the loan by a fair amount, I say cancel the GAP.
"Eric @ opposite-lock.com" (theyrerolling)
06/17/2017 at 11:18, STARS: 0
Mine was the same. If it got totaled, they would buy me an identical new car.