To be fair. He didn't say his son couldn't afford more, just that he wasn't putting more down (which makes sense depending on the rates). Also, look at what used cars you get for $10K right now. If it's a long-term purchase, it makes more sense to get a new car at MSRP.
No, that would be a function of your regular auto insurance policy (or responsible party's). They should pay out actual cash value which'd be for a vehicle of similar year/mileage, but some may offer an additional amount or to match the ACV of a newer replacement. Gap is for when your outstanding loan is in excess of the ACV either due to depreciation outmatching the rate at which you've paid or rolling negative equity into the loan. Basically it puts you at net zero.
Gap insurance for what? What exact circumstances would trigger a payout by the insurance company beyond what regular auto insurance would cover? And how much would it pay?
And if that happens (life insurance claim) you really didn't need it for you as you are DEAD.
Was not talking "LIFE INSURANCE".And if that happens (life insurance claim) you really didn't need it for you as you are DEAD.
Life insurance is for your family not you.
Possibly, and you may be very well right.
GAP is really a waiver, not an insurance policy. Your auto insurance will only cover the actual cash value of the vehicle. If you owe more than that, you're on the hook for it. If you have a GAP waiver, you're off the hook. It's really quite simple.
Nationwide (which we have now) does offer GAP - but please note they don't cover any amount you rollover.
Sure. I'm not denying that cars can be financially ruinous for many. I just think that--if you need a car right now--a new entry level car at MSRP is a pretty sensible choice.
Gap is included in the lease because effectively it's the financing company that has a loan out they're paying with your rent to them and they want to make sure their loan is covered if the collateral item is destroyed. This is why putting a down payment on a lease is a bad idea because all you're doing is reducing the lessor's exposure and you likely won't receive any credit in a total loss. But the fact that the banks see the value in gap coverage for themselves should speak some to its efficacy.
Thank you. Understood. Cheers.
My Dad always lamented the fact of how much wealthier he would be if he did not need to own a vehicle. Safe to say, he was not a car nut. LOL. Every time he would see a car carrier loaded with new cars going down the road, he would always joke: "there goes another truckload of heartaches". LOL
Gap insurance covers anything your regular car insurance won’t cover if you hsve a low down payments and owe a large amount on car or truck in my case the car insurance would not cover the payoff on a totaled car that was a year old because of depreciation on car and l did not put a large down payment at that time
If you bought your truck at list and can sell it for 5-10k over sticker there should be no need for gap insurance. If two years down the road the bottom falls out of the car market when the chip shortage etc is over would be the only time you might possibly need gap insurance. I wouldn’t buy gap insurance. Also the Maverick is inexpensive which help you not get into to much debt, unless you checked off every option available.
