Gap insurance where to buy it dealer is quoting 900$ for 3 years

REAL "peace of mind" is money in the bank.

Most all so called "extended warranties" and specific product protection warranties are NOT warranties at all.

They are insurance policies. The insurance company and the salesman makes money right off the top. They take your money and reinvest it to make more money.

The insurance has specific "escape clauses" and limitations on what they don't cover.

They are sold to the uninformed and those who are poor and have little ability to manage their finances. They are the same people who take out 7 year car loans. These people are "under water" the moment that they drive the car off the lot.

Save your money and be "self insured." There are no limitations or escape clause on CASH.

I you don't use it, you win.


You keep your money and any interest that you've earned in 3 years.

 

I've never purchased gap insurance. My brother owns two motorcycle shops and said that gap insurance actually makes the dealerships money. I did buy an extended warrantee but haggled with the dealership.

 

Carson toyota quoted me 600 something

 

Don't be fooled GAP is negotiable. Knowing how much the car would depreciate once I drove it off the lot I wanted it for peace of mind. I was about to walk out of the dealer since they couldn't get my monthly price point. I believe i got mine covered with the 3 year lease for $299. Even the damage coverage of up to $5k was dirt cheap.

 

When was the last time that you totaled a car within 3 years of purchase?

 

Me personally never. I know of 2 people that have been screwed because of the "other" driver and having $3-4k they owe after their car was totaled. Depending on what state your in and what insurance you and the other driver has (if any) can be a nightmare. I'm not saying everyone needs to go out and get GAP coverage. Just if you do...don't think you have to bow to the will of your dealer on cost.

 

....and it was your fault

 

The financially prudent person will save up enough cash to take care of financial setbacks like you are trying to insure for one particular incident.


The problem with a large number of individuals in the populace is their strategy for financial planning is to spend it all before someone takes it.

Basically, "eat it all or it will spoil or be stolen by other predators."

It is well proven that those individuals, who practice the Calvinist rule of "delayed gratification" are more likely to be successful in life.

 

Businesses don't stay in business selling products that don't make money. At least not for very long.

Mike

 

I purchased a prius for 60 mos 2.9apr and my GAP is 700. I am looking for one and I am cancelling it.

 

Hey, I had a 2010 prius with a 3 year @ 0apr and I drive allot. I totaled it 2012 December with 187,000 miles and got around $13,500 for the car from the insurance company ( it was the cars only collision). I bought it back for $2000 and sold it the next day for $3000. I only had $7900 left in the loan.
But because the plugin prius will depreciate much faster and I drive much more ( I already have 20,000 miles on a 3 month old car, I remember when i drove off the lot with 16 miles ) and the loan is for 5 year at 0 apr. I just contacted my insurance company for gap coverage which cost my around $4 every month


It just depends on the use of the car and what kind of car and how fast it'll depreciate, and hold long of a loan you have

 

Get GAP insurance as an add on to your regular auto insurance. I think when I bought my 2010 new it was like $60 extra a year. Then after the car was a year old it wasn't necessary.

 

My 2012 PiP was hit by a semi truck when it was 18 months old with almost 20K miles on it. I was surprised to learn that it was still worth $27-28K, when it sold new for $32K. The damage, which appeared to be fairly extensive to me, was repaired for around $12K. I paid cash for the car, and have never bought gap insurance. However, I might consider it in the case of a lease, provided it was available for a nominal cost. $900 sounds like a rip off. My daughter financed her Prius with her credit union and the gap insurance was not that expensive as I recall. I don't remember if it was provided by the credit union or added to her car insurance premium. She has had the car for over two years, so I'm going to suggest she check to see if the numbers make sense to keep it or cancel it, if possible.

 

This is an example how I would finance "gap insurance."

There was a web site called "oneshare.com" that sold a single share of stock with a stock certificate.

In 2001, I purchase one share of Intel stock. My friend's son was born at the same time, and I convinced his son's grandmother to purchase one share hoping that his parents would contribute to an automatic purchase plan to purchase more shares for his education. They did NOT. His one share is worth about $25.
I went on the automatic investment plan, purchasing $50 worth of stock every 3 months.

Now, I have over $2,800 in my account and over 100 shares. Every year, now, I get close to $100 in dividends, which pays for half the shares that I purchase. There will be a time that the dividends pay for my $200 a year automatic purchase plan and I will have $6,000 in the portfolio.

And, everything that I have invested in the stock is mine, minus 15% in taxes that I would have to pay on only the money minus the all the money that I put in.


That's the best "gap insurance" of all.

 

I'm into investing as well...and couldn't agree more with your thought process behind insurance!

People always need to remember that insurance is betting (gambling). You are actually putting money down hoping the wheel spins to the spot where something bad happens.

 

Like home mortgages, a a smart or even just a prudent buyer should NEVER have the need for "gap insurance." Any payoff loan that more than 3-4 years long is ridiculous.


Under water with a car payment? No way!

You don't own anything until ALL liens are "paid off." No person with a mortgage is a "homeowner."

 

Ya, my 0% interest loan just sucks.

Also, amazing low risk wealth can be made with mortgages. At these current rates it is pretty stupid to not use this cheap money.

I'm guessing you don't believe in investing in the stock market either.

 

Are you a N-I-N-J-A? No income, no job applicant?

They sold those mortgages, too.

I got $1,800 off the purchase price for my car, because I didn't take the 0% interest loan. To me, $1.8000 in my pocket is better.