On a used vehicle that has already depreciated?

never bought it and never needed it.

I wouldnt think on a used vehicle, you would need it.

If it was a new vehicle, then you might think about, if you know that you arent going to pay over the monthly note..

Yeah I wasn't sure, bought my wife a new vehicle last week (used car but new to her) and declined the gap insurance at the dealer, now the lender is offering it to me again.

I think the state maximum for gap is either 299 or 399. If you dont buy gap insurance imo you are taking a big risk. Lets say you bought a MDX today for 13500. Tack on ttl and your at 14500. Well guess what, It probably wasnt worth what you paid for it on day one. Unless you are taking out a 24mo note than your never going to be ahead of the value. Buy the gap!

Not to sound ignorant but what does the state maximum mean? BTW-Brian we took your advice and found her something else other than an MDX. We were looking at Pathfinders but then found a really clean, low mileage Infinity QX4 which is basically the same thing.

Just depends on how bad the dealership stick it to you. I would not buy Gap insurance.

barndoor

It means the state says that you can not be charged more than 399 for gap.

Year or month?

Total, one time payment thats added to your note. For a dollar or so on your note you are coverd till it's paid off. For a dollar a month, Id put gap on mine.

Thanks Brian

Ok check it out. You buy a vehicle for 15k plus all the fee's. You finance it at 60 mo w/zero down @5.9% your payment is 311.05 w/o gap. With gap it's 318.74. So 7 bucks a month.

With any new purchace, majority of most people are upside down as soon as they drive out of the lot. IMHO I would purchace it if I was going to be upside down for 3 to 4 years, if you do not get it and you total that vehicle out and the insurance company pay's out ACV which majority of them do, let's say your loan balance is 20 k and the insurance company pays out 15 k your still responsible for the 5 k, which gap would take care of that portion.

Good-luck

Marc

Well I guess an answer to the original question would be no. It's not a ripoff. You may never use it but it's def not a ripoff.

Financed a car a few months ago through State Farm Bank. They do my insurance and I got a rate of 5% on a late model used car. Gap insurance was included for free.

RCP I bought my wife a QX4 several years ago. They are great vehicles. Have had no problems with it at all.

Good to hear, this is my 1st Nissan product so I was a bit apprehensive but have heard good things about them.

Nissans rock. It's what I bought my wife. They have bad motor mounts, power seat motors, power window motors. Thats the typical stuff we fix on em. All in all thats pretty good compared to others.

If you are buying a new vehicle, especially a truck, suv, or van, with the soft market right now, I wouldn't hesitate adding 300-400 to my amount to be financed. If you total the vehicle 3-6 months later, you will be wishing you purchased it. It literally could save you $5000-$10000 depending on the vehicle.

If you're making payments on a car, I'd go with the GAP insurance.....I got it on both my used vehicles.......and am paying off a remainder on a car that didn't have gap insurance.

New yes used no

Thats bad advice unless he put over 25% down.

The trick is not be upside down in the vehicle in the first place. But with 1% financing and such, it would be foolish to put a large down payment on a depreciating asset when you can earn more than that on your money elsewhere.....so I can see where GAP would help.

What bank have you seen offering 1% on a used??? Id love to have that in my back pocket. 5.9% is about as good as it gets for used right now.

Sorry, didnt know the topic was for used cars only. My bad.