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Smart Shopper Gap Insurance
446 messages, Last post on Dec 05, 2009 at 7:59 AM
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Replying to: madmanmoo (Aug 31, 2009 6:38 am) kelliann: have you ever thought about getting a cheaper car? You seem to be stressing over this purchase. Plus it appears you are at the upper limit of your credit if $600 is going to somehow disqualify you. And to be honest a six year, high interest loan on a used car in this economy is probably not the smartest move. Why not look for a 2006 Camry instead or a cheaper car? I know it the older design but it should be a few thousand cheaper and near bullet proof in reliability since it was the last year of that design. You can find plenty of Camrys with 40k-50k miles for around $13k. Why not look at a new Sonata? Hyundai has been very aggressive this year in sales and you may be able to get a new Sonata for the same or lower than a one year Camry. The Sonata is rated the same as the Camry. |
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Replying to: kelliann (Aug 29, 2009 1:32 pm)  ) ...Dave
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| That should be the total premium, most likely...so, spread over 48 monthly payments is under $10/month...to me it is worth it, to some it isn't...if the car is totalled in the first 2 years, you may be quite glad you have it...as the vehicle loan balance goes down, the policy is worth less and less, but if you are upside down, say, $7-10K in years 1 and 2, the policy will be quite valuable | |
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Replying to: wdhyte (Sep 13, 2009 6:44 am) |
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Replying to: wdhyte (Sep 13, 2009 6:44 am) |
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Replying to: dtownfb (Sep 14, 2009 8:46 am)
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Replying to: madmanmoo (Sep 14, 2009 11:41 am) On some luxury cars, depreciation is BRUTAL. 
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Replying to: Mr_Shiftright (Sep 14, 2009 12:42 pm) and so it goes...ah well...luck O the Irish 
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While this is seat-of-the-pants math, almost any loan over 48 months you will be seriously uspide down for a number of years, unless, as you say, the down payment is at least 20%, and probably more like 25-30%...so many cars depreciate so rapidly, and the loans are paid down so slowly, that the gap is quite wide in the first 3 years... This is even more so if you roll over negative equity from the trade-in, then even a 25% down paymt probably does not help much at all... Unless one had $5,000-10,000 sitting around to pay the gap, then gap insurance may be a wise move for most folks...even if you DO have the 5-10K, paying an extra $10/month for the insurance to pay that gap may still be a smart move, rather than depleting your cash stash... Run the numbers and see if the gamble is worth it for you, and always use the worst case scenario for your math, like totalling the car in Year 1 or 2, as that is when gap ins does you the most good... Also, remember, I don't care how good a driver YOU are, it's the other guy who may be uninsured when he T-bones you and totals the car...
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Replying to: marsha7 (Sep 14, 2009 6:39 pm)
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