Tonight I traded for a beautiful 2004 FX4, and I financed nearly the whole sticker price as I was upside down by several thousand on my trade-in(02 Ranger Edge Plus). I thought the gap insurance would be a decent deal for about $7/mo, so I went with it. Anybody else got the gap insurance, or have any comments?

 

Gap insurance is definitely worth it. I wouldnt be without it...of course it helps though that I get it for free through my credit union.

Insurance companies dont like paying any more than they have to and it is very likely that you could come up short in the unlucky event of a serious accident.

7$ a month aint bad though.

 

my last lifted chevy was stolen after 6 months and can tell you i wouldn't be caught with out it! deffintaly a good choice

 

my last lifted chevy was stolen after 6 months and can tell you i wouldn't be caught with out it! deffintaly a good choice, i would of been screwed with out it

 

Last three vehicles I bought I had gap insurance. For my '04 it cost me $350 on a loan of $32K for 5yrs.

Thankfully I have never had to use it!

Michael

 

I went with the GAP insurance. I financed the entire amount over 84 months with our credit union. I think it'll depreciate faster than I'll pay it off so if anything were to happen to the truck, it's a safe bet.

And for those that don't know what it is, GAP insurance covers the difference between what the insurance company pays out if it were totalled and the amount left to be financed. Let's say you owe $7000, it's totalled and insurance values it at $5000, the GAP insurance from the lender covers the $2000.

 

It’s a real good point you all bring up, especially bwhitt. I think some people, maybe many just take for granted that if there financed vehicle is a loss that the insurance will automatically cover the total cost.

There is nothing worse then to lose a vehicle, but it would be even worse to know that for one you are out a vehicle and second that you may still owe thousands of dollars or something you can no longer drive…

 

Gap insurance is highly negotiable.....My credit union charges $125.00 for the coverage. My dealer wanted $350.00 for it and when I told them that I would just finance the car through my credit union they dropped the price to $180.00. I figured that I would go ahead and pay the difference since I was getting slightly better ineterest rate.

 

the only reason i didn't get gap coverage was that i plan to pay mine off in January or February. it is a good idea if you have a long loan term.

 

I paid invoice for my $31,000 '04, with 6000 trade equity. If I remeber, 1st year depreciation is somewhere around 20%. So, I was pretty much in line with value when I drove off... but for $125, the cost of Gap, I bought it anyway - who knows what will happen to used values. (and, yes, the dealer marks the price up - they mark everything up. That's how they make a profit...savvy buyers negotiate 'whatever' down to cost) Any body who finances more than 80% of invoice, over five years, should get it IMO.

Consider, though, if you put a ton down, you may never be upside down, so use the $125-$350 toward a bedliner, grill gaurd, etc. Y'know, MODS!!!!