Gap insurance

[inferno]

My friend owns a gap insurance business I think they do sell the product down there…

I just made a few phone calls. Ford gap insurance is $999 and his Credit Union offers it at $399. Now it comes down to who offers the best rates.

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[Fish Chris]

They tried to add a markup to your truck? Which dealership is this? I ordered mine thru Harrold Ford.

Oh, but it was "only" a $15K markup. Heck, that's only like one monthly payment on my Bugatti Chiron lol

 

[ralatalo]

I think most everything has been said, I will only add that GAP usually isn't transferable if you refinance. It also doesn't help with you go to sell, only if the car is totaled by insurance.

If you're putting much money down and have a shorter loan then it probably doesn't make much sense. If you're one to trade cars every few years it probably also won't make sense. If you're going to keep and drive the car for years and you've got a long term loan with little cash down then it can save your bacon.

 

[TSAINTS1115]

Like all insurance not worth it until you need it. Consider if hail damage (or whatever) totals car in first 3 years "can he write a check for the difference between the amount still owed and the depreciated amount the auto insurance will pay? How many people are upside down on their vehicles in the recent tornados? How many had not paid $50-$75 per year more on their home owners to bump their "contents" coverage?

Then that person is overbuying their budget and should 1) wait and save more for a down payment or 2) buy a less expensive vehicle.

 

[sn00pyguy]

What if the accident was your fault?

Accident responsibility matters not. What matters is how much your insurance company will pay. It will be less than the payoff amount which is the gap.

 

[MakinDoForNow]

Then that person is overbuying their budget and should 1) wait and save more for a down payment or 2) buy a less expensive vehicle.

Gee it's a hard budget decision today with used prices what they are. I would say that I seriously consider an XL -HYBRID FIRST 2.0EB SECOND THEN consider used but how do you budget repairs and fuel??? I currently have a 2012 CR-V worth 12-14k, would not want to pay that but it's had good care and has only 128k miles. Ideally he needs to find good used for 5k but maintenance???

 

[inferno]

Gee it's a hard budget decision today with used prices what they are. I would say that I seriously consider an XL -HYBRID FIRST 2.0EB SECOND THEN consider used but how do you budget repairs and fuel??? I currently have a 2012 CR-V worth 12-14k, would not want to pay that but it's had good care and has only 128k miles. Ideally he needs to find good used for 5k but maintenance???

Absolutely! for the money of a new Maverick and rates as low as they are you cant beat it. His Maverick hybrid XL will be more affordable than buying any used truck once you take the mileage into consideration.

 

[MakinDoForNow]

Absolutely! for the money of a new Maverick and rates as low as they are you cant beat it. His Maverick hybrid XL will be more affordable than buying any used truck once you take the mileage into consideration.

Check gap with Ford finance. And see if can get finance through a credit union, they have better long term rates and best gap rates, I think. Also check with insurance for replacement rider usually cheap (though it all can add up)

 

[Bikeric]

The finance company has already calculated the risk when they assign your son the APR on the loan. The Insurance company calculated the risk when they provide coverage at a specified Premium.
The GAP "insurance" is nothing more than a middle man trying to get an extra $2k from you and they'll gladly add it on top of the already high finance rate.

Don't do it......

 

[NewBernWolf]

Accident responsibility matters not. What matters is how much your insurance company will pay. It will be less than the payoff amount which is the gap.

So, unlike every other insurance policy ever devised, gap policies have no exclusions.

 

[TSAINTS1115]

Gee it's a hard budget decision today with used prices what they are. I would say that I seriously consider an XL -HYBRID FIRST 2.0EB SECOND THEN consider used but how do you budget repairs and fuel??? I currently have a 2012 CR-V worth 12-14k, would not want to pay that but it's had good care and has only 128k miles. Ideally he needs to find good used for 5k but maintenance???

Technically everyone should consider repairs and fuel in the monthly budget. It's not hard. If you only have X amount of dollars for fuel a month you probably shouldn't be looking at something with a Hemi.

 

[TSAINTS1115]

Absolutely! for the money of a new Maverick and rates as low as they are you cant beat it. His Maverick hybrid XL will be more affordable than buying any used truck once you take the mileage into consideration.

Even moreso when the bubble for the used car market eventually pops.

 

[2022EOW]

No! It’s smoke and mirrors.

 

[22Mav]

How long is he financing for? That'll have the biggest impact IMO. I'm going with the 36 month financing and 0 down. Within a couple of months there should be positive equity unless the world explodes. If financing for a longer term, definitely consider it or at least compare it to what your insurance may offer.

 

[MLowe05]

GAP is refundable if you sell or refinance. We just sold our 2021 Forte and GAP was refunded. It was a pro-rated amount, but that's to be expected. I wouldn't take it if I were financing 36 months. But above that, I'd take it and cancel it for a pro-rated refund once I was sure of the equity in the vehicle. It will waive amounts whether it is your fault or someone else's. And even if someone else totals your car, their insurance is not going to pay more than actual cash value. No one cares what you owe.

Anyone trying to tell you it's not worth it has never needed it.

As I noted earlier in the thread, GAP once waived a $14,000 deficit in a new E-class burned in a fire. Also, we had a relatively new Kia Optima Hybrid several years ago totaled very early on and GAP waived a sizable chunk then, as well.

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