Just got my BSP auto tC and I love. I was wondering do most people opt out of Gap Insurance? This is my first car so I dont really know these things.

 

I did buy the Gap insurance. It's a nice thing to have, especially for the first couple of years when you owe more than the car is worth. The car automatically loses value the moment you drive it off the lot, so let's put it this way:

You paid $17,200, out the door for right at $18,5xx and change. You own it for a week and you total it, your insurance company only values it at $16,200. You'd be responsible for the remaining $2300 out of pocket if you didn't have Gap coverage. For the $400-ish bucks it costs, it's worth it. btw, most gap coverage should cost about the same from any dealership, and you might be able to get it cheaper directly from your auto insurance carrier.

 

I would get it on any new car. It's pretty cheap for the peace of mind. Also, you do not need to buy it from the dealer, shop around regardless of who you get your financing from be it the dealer/bank/credit union. Look for low/$0 deductible.

 

Yeah gap insurance is great....If anything bad happens it makes up the difference...i got lucky my is included free of charge through the loan i got

 

Yup got that at time of purchase!

 

It is _not_ a no-brainer - it depends on a few things to get a good answer.

1) If you wrecked your car the 2nd day you had it - would you be financially distraught?

2) Did you add more than say.. 1k in accessories to your vehicle via financing?

3) Did you put no money down?

If you answered 1) yes - GET GAP

If you answered 2) yes and 1) yes - GET GAP

If you answered 3) yes and 1) yes - GET GAP

Get the drift - question 1) is most important. If you are going to be hurt financially if you wrecked it.. hell yes get it. Better safe than sorry.

 

It's definitely a good idea to get... although you can usually get it cheaper through your insurance company.

I have ALLSTATE and they give it to you free for the first 2 years. The dealer wanted to charge me an arm and a leg for it.

 

I got it... for the reasons stated above - if someone stole my car or something, I don't have several thousand to drop down just to break even with NO car. That blows.

I almost wished I could spend a little extra even to get LoJack's upgraded system where they will pay your comprehensive deductible AND give you like $2500 toward a new car. That's tight, but too much money for me.

I got the regular LoJack and the gap insurance from the dealer. I like covering my ___ when a lot of money is on the table and I can't afford to lose.

 

GAP was included for free when I financed through my bank.

 

I got the LoJack from the dealer as well and have been very happy with it.
You have to protect the ones you love, right?

 

i got it too....i will most likely total my car before payments are through so i figured its worth it.

 

damn thats not positive thinking lol

 

Gap insurance is a total ripoff. No one should ever buy it. If you need gap insurance, then you can't afford the car you are purchasing. If you put down a reasonable amount and choose a reasonable term (i.e., 36 or 48 months), then you will have no use for gap insurance, because you will never be "upside-down" in your loan. Gap insurance is yet another way to take advantage of people who want to buy more car than they can realistically afford. See also: 72-month loans. Show me a person who is happy about still having to make payments on their car when it is 5 1/2 years old and worth about a quarter of the purchase price.

I know I'll get flamed for this, but it's the truth. I know that everyone wants their favorite car right now, but you would really be much better off saving for a few months until you can make that big down payment.

 

Wow, just wow.

You've stated some fairly obvious points, but coming up with $400 out of pocket once is far different than coughing up a big enough down payment to keep yourself even. People should buy Gap insurance regardless of the length of the term, because it's pretty tough to not be upside down in a car immediately. It's called "insurance" for that reason.

Personally, if I crashed my car a week after I bought it, I'd rather be out $400 for Gap coverage than to be out $2000 or however much on my down payment. I don't think it has anything to do with buying more car than you can afford, especially if you consider that if you buy gap, you're ADDING to the amount you're financing. Presuming you didn't put any money down, you're actually making the car more expensive per month. That doesn't sound to me like you're buying more car than you can afford. The only point at which it DOES sound that way is if you finance for 72 months, that's just ridiculous.

 

^^ This is the absolute truth.

Just because the bank / dealer will finance you on a car doesn't mean you can afford it right then and there.

I think we've just become so used to predatory lending practices that it seems normal.

-Justin

 

I declined the gap insurance, the dealer wanted around $900 for it. Rip off artists.

 

the finance guy told me that GAP was for windows... wtf? o well paid off in full up front :D

 

GAP is an asset to have with our car. It is new and doesn't have much history. If you total it... you are going to be paying to total it rather than coming our even. My Scion dealer wanted me to pay $500 for it on top of the price of the car since I arranged my own financing.

My credit union gave it to me at $200 and I also have disabliity/unemployment payment coverage on the loan too. Only raised my payment a few cents a month!

I have peace of mind now.

 

I bought it. Gap insurance from Pentagon federal Credit Union. One time fee of $225 added to my loan. thats it! i feel secure now

 

Well both are good points, 10% down would sure keep you out of a jam, but 18 to 25 year olds (the market for Scion) don't usually have the excess $1750 plus TT&L, to part with. Just because you don't put 10% dosen't mean that you are in horrible shape, you just have to get the GAP to cover yourself and realize that you are going to have to hang on to your car for at least a couple of years.