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Gap Insurance

446 messages,  Last post on Dec 05, 2009 at 7:59 AM

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What is this discussion about? Car Leasing, Buying Insurance

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#11 of 446 EVEN AT $225 A RIP -OFF by diazodoktor2 Jul 27, 1999 (12:39 pm)
RE: JOHNHARPER All the leases that I have been involved in (Ford, GMC, Chase) have included the "gap" at NO additional charge. You are being HUSTLED big time. Don't go for it!! The dealer is ripping you off for additional profit. Tell him thanks, but no thanks ! How about your own insurance co? They shpuld be able to do a whole lot better than that if the leasing company you are dealing with really does not include it in the contract.
#12 of 446 JDPEARL by jdpearl Aug 10, 1999 (12:19 pm)
Be careful of GAP protection, some states it is regulated like an insurance product and pricing is controlled by the individual states. Yes it is true that some manufacturers include gap in their leases. But the consumer is still paying for it in acquisition fees that are clearly stated on all these contracts. There is nothing for free in this world. Make your own decision consumer. GAP is designed for peace-of-mind. If you are rolling over negative equity from a trade-in, insurance settlement, or lease charges into a retail (finance contract) then you might want to consider GAP protection. Also when buying a used or a new car the difference between what you owe and what the payoff. There will always be a depreciation factor with most vehicles. Insurance is a risk and there must be a charge for it. That's the law
#13 of 446 Frozen Topic by kcram HOST Feb 08, 2000 (1:01 am)
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#14 of 446 GAP Insurance by Dec 14, 2000 (3:46 am)
#15 of 446 GAP Insurance by ae7327t Oct 26, 2000 (8:24 am)
Hello all,     My fiancee and I just purchased a Dodge Neon 2001 SE at 200 over invoice. In negotiations, I squished all of the major scams (extended warranties, credit insurance, etc.) but the dealer said we needed to have gap insurance at 450 or our APR would be going up from 9.3 to 9.7% and he said that Chrysler included GAP insurance. However, on the contract, I saw it as an extra charge??? We took it because it would raise our monthly payments with a higher financing rate...did we get screwed?
#16 of 446 by fronobulax Oct 26, 2000 (1:01 pm)
It's not real clear what you were offered but it makes sense that the dealer would offer two rates, a lower rate if you buy GAP insurance. Given the choice between 1. A 9.3% loan and having to buy GAP insurance for $450 and 2. A 9.7% loan with not GAP insurance requr (9.7%), then you should take the higher rate loan. That is because the higher rate results in only about $150 more in payments. It is better to pay $150 over 5 years than $450 today.
#17 of 446 APR by ae7327t Oct 26, 2000 (3:34 pm)
I am hearing from most of my friends around here that a 9.3% APR is way too high for purchasing a new car. It is probably our fault for not shopping around enough to get a good APR from another institution. We had the option of taking a 1500 dollar rebate or going with a lower financing rate over the five years. In the end, the lower monthly payments were with the rebate but overall, I think we should have probably got a lower APR because we will end up paying more over five years. Is this correct?
#18 of 446 Gap Insurance by voicemailking Oct 29, 2000 (12:03 am)
I may be wrong...but here in Florida i am told it is law that gap insurance is included with all leases...please correct me if i have been mis-informed as i do not want to pass bad information...Thanks!!
#19 of 446 by rea98d Nov 08, 2000 (12:25 am)
With a lease, Gap insurance is a must, simply to protect yourself. However, I thought we were talking finance and loans, in which case I thought comprehensive coverage from allstate, state farm, et al, would be suffecient. Can someone straighten me out?
#20 of 446 GAP Insurance by akangl Nov 10, 2000 (12:13 am)
With most leases GAP insurance is included, but if we are talking about a vehicle loan, no, GAP insurance isn't included. As for regular insurance......full coverage being enough, sure it would be enough if you are not in a negative equity situation with your car....owe more than replacement value of your car. If you are upside down in your car......as most people who finance for 60 to 72 months are, GAP insurance is a great thing to have. I purchased a 2000 Subaru Impreza 2.5RS in February and financed $24,000 on a $20,000 car (I was very upside down in a 1994 S-10 Blazer), the finance manager insisted that I buy GAP insurance, I had never thought of it before, but figured it was a good idea. Anyway, I traded the car in on a Nissan Quest in June and again find myself very upside down, so I again added GAP insurance to the loan. I figure for $399 I can't go wrong. I have known too many people who have bought a new car and then totalled it and found themselves having to shell out $3000 to $5000 to pay off their loan after the insurance company has paid the replacement value of the car. Remember, the bank doesn't have to take whatever the insurance company pays and call it good.......you are responsible for the remainder of the loan and the bank will get its money one way or another. Also, the insurance company isn't responsible for paying the entire loan, they only pay replacement cost of the car or fair market value, not what the car cost new. So if you bought a brand new car and totalled it 6 months later, guess what.....you are going to get the value of a used car, not new and most new cars depreciate pretty hard when you drive them off the lot. GAP insurance is good protection.

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