Last post on May 06, 2013 at 5:45 AM
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Car Leasing, Buying Insurance
#421 of 467 Re: Looking for GAP for yr old used car, int rate over 12% [wdhyte]
Sep 14, 2009 (8:23 am)
If it's a website associated with Lee & Mason (I work for this agency), it's life of loan coverage (of course coverage ceases when loan is closed out early due to payoff).
#422 of 467 Re: Looking for GAP for yr old used car, int rate over 12% [wdhyte]
Sep 14, 2009 (9:46 am)
Do you really need Gap insurance? Mazda's hold their values pretty well.
#423 of 467 Re: Looking for GAP for yr old used car, int rate over 12% [dtownfb]
Sep 14, 2009 (12:41 pm)
Hahah, yes, they still need GAP. Mazdas depreciate just like any other car and more than quite a few.
#424 of 467 Re: Looking for GAP for yr old used car, int rate over 12% [madmanmoo]
by Mr_Shiftright HOST
Sep 14, 2009 (1:42 pm)
Unless you've put around 20% cash down on the car, you're going to be upside down on a 72 month finance no matter what car it is. Your down $3000 bucks right out the door on most cars you buy.
On some luxury cars, depreciation is BRUTAL.
#425 of 467 Re: Looking for GAP for yr old used car, int rate over 12% [Mr_Shiftright]
Sep 14, 2009 (7:06 pm)
I put down roughly 8% by paying the TTL up front in this case and financing ONLY the vehicle...and in todays economy, I'd think GAP would be virtually mandatory for consumers and its surprising how few have even heard of it let alone are aware of the value of it. My dealer didn't even offer it at the time of the sale (and I'd been there for over 4 hours w/a 5 1/2 year old AND a pregnant wife so needless to say I was anxious to wrap up and didn't even think of it, let alone notice the little NA on the side where it said gap insurance); so I just missed it (too bad so sad) and now I'm too late to get it thru them or my lender, so here I am shopping...
and so it goes...ah well...luck O the Irish
Sep 14, 2009 (7:39 pm)
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...
#427 of 467 Re: shiftright [marsha7]
Sep 16, 2009 (12:26 pm)
exactly, which is why I carry a standard level (vs. TX minimum) of uninsured/under-insured motorists coverage as well; I trust me, I trust no one else
Sep 16, 2009 (12:52 pm)
Not to overdo it, but I carry $100K UM as a basic policy, with a separate $1 million umbrella...after seeing a number of cases where the injured had meds over $250K, and the at-fault driver had minimum limits of $25K, I could see the need for extra insurance in the case of loss of limb, loss of life, or simply serious injury...the add'l $$$ could make life easier if one was unable to work...but that's just me...
#429 of 467 Re: wdhyte [marsha7]
Sep 16, 2009 (1:23 pm)
I've got the 100/300 for the UM as well but 1M umbrella? just what is an umbrella policy and how much is 1M worth of coverage?! (yikes)
#430 of 467 Re: wdhyte [marsha7]
Sep 16, 2009 (2:41 pm)
never mind.Right after I posted the other reply I said 'duh', go wiki the thing which I did so I now have the task of pricing that tomorrow w/my provider. Really good idea...thanks.