i have a 7 year loan and have had it for 4yrs. i owe more than my car is worth. i have gap insurance will that cover me completly? im so worried.
2006-10-14 08:22:03 · 11 answers · asked by butterflykisses4me2003 1 in Cars & Transportation ➔ Insurance & Registration
will i owe money
2006-10-14 09:30:03 · update #1
Gap insurance will cover the difference. You will have no bill and no car. Be smarter with your next car, get better deal!
2006-10-14 12:27:54 · answer #1 · answered by AnnaT 1 · 0⤊ 0⤋
I don;t know if gap insurance covers the difference between owed value ond actual value. Generally insurance covers book value and you still owe the bank the balance up to what you have borrowed. It is never wise to own more car than you can afford and if your loan period has to be so long for you to afford the car, then it is more than you can afford. This American Obsession about "new" car, and paying what they ask for how long thay ask is just not working. If we won;t pay $10,000 markup, than they will lower prices. If they off 5 or 6 thousand off, it is not enough. The average car now depreciates 10 thousand when you drive away after purchase. This is what we call "price gouging" that the "cons" in "con"gress say they do not allow. Presidents of GM and ford make like 4 billion a year and then says company is bankrupt. Hope your gap policy covers the difference you paid between what the car was worth against what they overcharged you.
2006-10-14 15:37:00 · answer #2 · answered by Anonymous · 1⤊ 0⤋
A SEVEN year loan?? What the hell are you thinking? Gap should cover the 'gap' between what the car is worth and what you owe (maybe...). Find the policy (you know, the one you signed and paid for but never bothered to read) and make sure about the limits vs the payoff. If you get out of this mess owing nothing then count your blessings and please never do this again. Work two jobs if you have to, save three thousand dollars and buy a dependable beater until you are able to move up in car. This could be a blessing if you are capable of learning from a huge mistake.
2006-10-14 22:39:31 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Completely? No. Gap insurance covers the difference between what you owe and what insurance will pay. You will end up with no bill, if that is what you are asking, so you are starting from zero when you start to shop for a replacement vehicle. After 4 years, you should have some equtity I would think. Is it a high mileage car? Or perhaps you put little or no downpayment on the car?
2006-10-14 15:31:36 · answer #4 · answered by Fred C 7 · 1⤊ 0⤋
I'd say you're up the creek without a paddle! Some insurance companies will work with you if it isn't an exorbitant amount over book but really, why would anyone buy a car designed to last three to five years take a seven year loan? I'd say you were way out of your league and should start shopping at Walmart and stay out of Sax Fifth Ave!
2006-10-14 17:01:23 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Gap insurance will cover the difference between what your car insurance will pay and what is owed, no out of pocket to you...
2006-10-15 02:16:35 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If you have gap insurance you won't owe more. The gap insurance fills the gap between what insurance pays and what you owe on the loan. You bought the coverage, but didn't know if it would take care of you???
2006-10-14 19:24:37 · answer #7 · answered by Chris 5 · 1⤊ 1⤋
If you have insurance coverage for your car, then you are covered. Call your car insurance to find out. Drive more carefully.
2006-10-14 21:53:48 · answer #8 · answered by RunSueRun 5 · 0⤊ 1⤋
U r covered so you wont have any out of pocket costs. Now you have to learn how to take the bus.
2006-10-14 15:25:01 · answer #9 · answered by Anonymous · 0⤊ 0⤋
you needed to find out more..before you applied for gap . If its not your fault (the accident ) then that is one thing good for you..
2006-10-14 19:28:39 · answer #10 · answered by StarShine G 7 · 0⤊ 0⤋