When I dealer-financed my last car, I bought gap ins from the dealer. They included it in the initial contract they drew up (I ended up with a different lender bc I was hard to finance with a repo). It only costed $200.00 and was rolled into the financing. Is that normal or did I get jipped?
It depends, who has your regular car insurance? Did you opt for the "full pay" provision in your comp./col.?. If so, you may have duplicate (and unneccessary) coverage.
I have full coverage but I did not opt for ins to pay the loan off in the event the car was totalled, they would only pay the book value and the balance would be paid by the gap ins that I bought from the dealer that I hope really exists. The only proof of the gap ins I was given is the gap ins line item in the contract - no separate policy documents. That's what sounds fishy to me.
$200 for a gap policy is a good price. Normally the cost is $295 to $595. The dealer will have a paper copy of the gap policy. You could call them to get a copy it should be in your deal bag.Gap can be a great value if your vehicle is declared a total loss, I would advise it on new cars if there is little down pmt or high interest contracts or when you trade in a vehicle with negative equity.
How does gap insurance benefit anyone "when you trade in a vehicle with negative equity" ?? I don't understand.
Re: Re: OT-buying gap ins from car dealer example; You trade in your car worth $7k but you still owe $10k, add in tt&l, doc fee's etc... You would be in the hole about $4k right off the bat. Now figure what your paying for your new car compared to book value. Unless you put down at least $4k cash or bought the car $4k under trade in value your gonna be in the hole. Let's say you put down $1k cash, 2months later your new car is stolen or totaled. The insurance will only pay trade in value, They don't care what you paid for the vehicle. Your still obligated to the bank $3k. gap would cover that. "Of course if there is no accident or car is not stolen then gap is useless."
Good news I found my gap policy paperwork. Its' amazing just how much this $200 can do for you if you ever need it.
Re: Good news If you pay more than the insurance will cover then you paid more for the car than it was worth.
Re: Good news The insurance will only pay trade in value ppt3 ================== This is not correct. THE END ** *** ** LB 59
Re: Re: Re: Re: Good news ACTUAL Cash Value. This is why one should never pay anything over that for any car new or used because you will the loose difference if the car is totaled or stolen. And there is no gap insurance to cover this. Also if you pay over acv you are in effect buying an auto that can not be insured.
Re : Good news quote: ------------------------------------------------ Originally posted by lbrown59 If you pay more than the insurance will cover then you paid more for the car than it was worth. -------------------------------------------- I am lost. What do you mean? QUEEN_BEE `````````````````````````````````````` ``````````````````````````````````````````` If the ACV on a car is say 10000 that is all the insurer will pay for a total loss because that is all the car is worth. If you paid 15000 for it you're out 5000 because you paid more for the car than it was worth. You are in effect paying 5000 for a car that you can't insure. On the other hand if you buy this car for 8000 and it gets totaled the insurer will still pay you the ACV i.e. 10000 in which case you come out ahead. This is also a good way to tell if a dealer is overpricing a car. One other tip you should never have to pay anywhere near ACV to buy a car. Here is another trick I use when I make an offer on a car. There is always another dealer who will offer me a comparable car for less than this dealer at or near the amount I offered this dealer for his car. THE END ** *** ** LB 59
