Help Please
Team Owner
Joined: Mar 2008
Posts: 21,502
Likes: 465
From: Southern Utah
Guys, GAP insurance is not Auto Liability insurance. It simply covers the "gap" between what you owe and what its worth if the car is ever totaled. If you paid cash for the car you don't need it, if you took a loan out at full MSRP prob a good idea to keep it. Its a one time charge that is amortized over the course of 60 months. So, yes you are technically paying interest on it too. 
Le Mans Master
Joined: Feb 2008
Posts: 5,188
Likes: 4
From: S.F. Bay Area CA.
Right, you want it and it's already paid for, no worries, done deal. The 10 days are already passed, time to shop is over.
Last edited by calmtgguy; May 25, 2009 at 09:51 PM.
Drifting
Joined: Jan 2008
Posts: 1,549
Likes: 2
From: Cambridge Illinois
The function of gap insurance is to pay the difference in what you are paid for the car if it is totaled and what you still owe.
Say you owe $40k and total the car. The insurance co. pays you $35K and the gap pays the $5k.
However there is rarely any gap between what is owed and what the insurance value is. This only happens when you owe more than what the car is worth.
A better name for gap insurance is "RIP OFF".
I pay cash for my cars and several times when I went into the finance manager's office to do the paper work, they have tried to sell me gap insurance. I ask them what gap? They sit there looking dumb and I tell them if try one other trick, they can keep the car and try to explain to the owner why they lost a cash deal.
The time is over for a full refund but you still can cancel and get most of the money back. However, if you are upside down and a bad driver then keep it as a good investment in your financial security.
Say you owe $40k and total the car. The insurance co. pays you $35K and the gap pays the $5k.
However there is rarely any gap between what is owed and what the insurance value is. This only happens when you owe more than what the car is worth.
A better name for gap insurance is "RIP OFF".
I pay cash for my cars and several times when I went into the finance manager's office to do the paper work, they have tried to sell me gap insurance. I ask them what gap? They sit there looking dumb and I tell them if try one other trick, they can keep the car and try to explain to the owner why they lost a cash deal.
The time is over for a full refund but you still can cancel and get most of the money back. However, if you are upside down and a bad driver then keep it as a good investment in your financial security.
Last edited by lh4x4; May 25, 2009 at 09:56 PM.
Racer
Joined: Jul 2006
Posts: 446
Likes: 0
From: New Albany IN.
Guys, GAP insurance is not Auto Liability insurance. It simply covers the "gap" between what you owe and what its worth if the car is ever totaled. If you paid cash for the car you don't need it, if you took a loan out at full MSRP prob a good idea to keep it. Its a one time charge that is amortized over the course of 60 months. So, yes you are technically paying interest on it too.
One More Thing...
It maybe rude of me, but how old are you? This is some thing that anyone buying a $50,000 plus car should know about and are aware of what it is for. As corvettemods1 says this is just for the GAP between what the car is worth and what you bought the car for. You are starting upside down (means you owe more than the Ins. will cover if the car is totaled out). If you are unaware of the need for this then you should KEEP IT.
Good Luck
Racer
Joined: Sep 2004
Posts: 385
Likes: 0
From: Kingwood TX
Rarely any gap?
That may be true if you put alot down. If you buy a corvette, finance the majority of it 80% +, drive it off the lot and drive down the road to trade it in...you might be suprised what the trade-in value is on your "new" vette that is now "used"...whether it has been titled or not. Any cars loses a tremendous amount when you drive it off the lot...paid for or not. You need to know what value the insurance company is going to use for paying off your loan. Some are more generous than others.
If you finance and you daily drive a vette...you WILL be upside down at some point during the first half of the loan...I can ALMOST guarantee it.
I'm not saying everyone is...but gap insurance is a good bet for most that finance. Take my Trailblazer SS...bought it new in December 2006 during the employee fire sale that GM was running...My invoice price and sale price weren't much below what the new window sticker for the same truck were after the "price adjustments" in early 2007. In today's economy...better to have gap insurance versus having a bill if you do have an accident.
Just my .02.
If you finance and you daily drive a vette...you WILL be upside down at some point during the first half of the loan...I can ALMOST guarantee it.
I'm not saying everyone is...but gap insurance is a good bet for most that finance. Take my Trailblazer SS...bought it new in December 2006 during the employee fire sale that GM was running...My invoice price and sale price weren't much below what the new window sticker for the same truck were after the "price adjustments" in early 2007. In today's economy...better to have gap insurance versus having a bill if you do have an accident.
Just my .02.
Thread Starter
Instructor
Joined: Aug 2007
Posts: 219
Likes: 1
From: houston texas
i am 23 and i kjnew aht the gap insurance was.. but like one the second picture i have posted says one time pay 202.02 so i was pretty confused that it was only one time pay and never pay any money after i sign the contract
but i realized that contract was showing me (1st picture ) like premium and 60month crap..
so i was really confused.. i am going to call my insurance and dealer ship but i was just too worried about this because i aint gonna pay 202 dollare per month for 60 months..
lol
thanks guys but hope fully this is relaly one time pay
but i realized that contract was showing me (1st picture ) like premium and 60month crap..
so i was really confused.. i am going to call my insurance and dealer ship but i was just too worried about this because i aint gonna pay 202 dollare per month for 60 months..
lol
thanks guys but hope fully this is relaly one time pay
