This past Saturday I purchased a 2011 Prius IV with the solar roof package. Feel like I got a pretty good deal at $28,500. I bought the GAP Insurance from Toyota, though I'll most likely cancel that this weekend. My question is this: this is the first new car I've purchased, and I'd never heard of GAP insurance. Aside from the fact that I'm sure Toyota's GAP insurance is MUCH more expensive than that of an insurance company, do you think this insurance is worth it? If so, do you think it makes any sense to keep the $895 GAP insurance from Toyota or should I get it from an insurance company? Thanks!
Check with your auto insurance carrier, I'll bet it's only $50-75 per year. If they offer it, take it and cancel the Toyota GAP policy.
Welcome Aboard! Don't get GAP from the dealer. Ever. There are ways to buy GAP coverage without doing so from the dealer or the lender. If you "have" to have GAP....then you have no business buying a new car. Not trying to hurt anybody's little feelings or anything---but really. Take a gooooood loooooong look at the deal you're getting ready to make.
Depending on your finances, you might be able to get away without any gap insurance. After all, selling insurance will, on average, earn the insurer money - so on average, you'll lose. The way to minimize your losses is to only buy insurance for things that would ruin you. If your car is totaled and you can't come up with the $5,000 difference between what the insurance company pays and what you still owe, and you can't afford a new car, and so you lose your job because you can't get to work any more, well, get the gap insurance. If you can afford it and don't mind taking the risk, then don't get it. Depending on how cheap it is, it might be worth it for the peace of mind as well. Personally, I could probably survive such an incident, plus I put down a fair amount of money, so my gap is likely to be rather small, if it exists at all. So I skipped the insurance.
you purchased a 2011????? I didn't think you could order them yet? Was that a typo or is it really a 2011??????
They are on the lots here in the U.S.A! If it were me, I'd have bought a 2010 and saved $4000 and not needed GAP, but that's just me...
Just get your money back and 'self insure'. Keep the $900 in the bank, it will not be enough worst case for the gap, but that period does not last too long.
My friend's accident is what scared me into getting GAP. He had a Honda Fit. spun out on ice and car backed into a tree at 60 mph. car was totaled. he owed $14k on the car but insurance only gave him like $8. So that is $6k he had to cough up.
He did not buy gap insurance, he finance it. So if he cancels he still does not have $900 to put in the bank. My question is what rate did he pay on the loan, how many months, how much did he put down, how big of gap does he have. If he totals the car does he have the money in the bank to pay the gap? My bet is no. If he paid 100% plus (also added his last car balance to the loan) for the car and put zero down on the loan than gap insurance is a very good idea. He he put 50% down than gap insurance is stupid. Also he needs to ask the insurance company how much gap insurance is, I had no idea since I have never needed it. If he finds that it is a lot cheaper through insurance this might be the way to go? My car list for 22,800. I paid 21,800, had 2,000 in rebates and put 8,000 down. Financed the rest at 4.3% over 48 months. The dealer still tried to sell me gap insurance. I told him that I sure hope that Prius did not drop in value that fast. Congrats on your car and give us some more details so we can give you a good answer. TED
When I leased my Prius, the dealer wanted something like $600 for GAP insurance for a 36 month lease. Being my first time leasing, I spoke to my insurance agent (Allstate), and pay $25 / 6 months, or $150 total over 36 months. I generally believe in self-insuring (not buying insurance, or carrying very high deductibles). For this lease, I decided $150 over 3 years was worth it.
When I leased my Prius 1 month ago today (woo-hoo!) the finance guy doing my paperwork stated GAP insurance was included in the lease. I told him even if it wasn't, I'd buy it from my auto insurance co. I did check all the figures to make sure there were no add'l $'s slipped in. I was pleasantly surprised he didn't try to upsell me on anything else - he did ask if I was interested in extended warranty, but when I said no, he just moved on to completing the paperwork.
I internet negotiated with the dealer over a 2010 Black Prius IV with solar to $18,500... Black 2010 Priuses are ridiculously rare here in SoCal. When I arrived to make the purchase, it turned out he'd screwed up and only had a 2011 Black Prius IV with solar in the inventory. So he gave that to me for $18,500 -- which I think was a great deal (feel free to tell me it wasn't). Southern California has something called VRRRM right now, where you can turn in an old car (I had a fully owned 1994 Volvo 850) and get $3,500 off the purchase of a new hybrid at select dealers. That was one of the big deciding factors in getting a new car -- a free $3,500. So it was $28,500 minus $3,500 plus tax/DMV fees/etc. APR is 2.8%. I could have easily bought this car outright, but I prefer to finance. I have money in investments, etc and didn't wanna sink the entire cash price into the car right now. Of course, I'll pay it off well before the 60 months is up. I've cancelled the Toyota GAP today, and will probably get it with my insurance company. Now...bring on the criticisms of what I did wrong!
If you're happy with the deal---what's to criticize??? Enjoy the car! OK...maybe one small critique, I've never been wild about black cars. But then...it's not my car! Best of luck!
And I only wanted a black one! As far as criticisms, I just meant that I *think* I got a pretty good deal with price and APR, but wanted someone to bring me back down to earth if I was sadly mistaken.
