Is the Gap Insurance that new car dealers offer buyers a scam?

Answer 1

It isn't a scam. It's a valid offer. However, you CAN get the same GAP Insurance cheaper if you purchase it yourself from places like http://www.gap-insurance.com

Be aware that gap insurance does NOT cover roll-over money from a previous vehicle. It only covers the DEPRECIATION of the vehicle you're insuring.

But yes.. it's valid. It's easier to buy it from the dealership because they include it in your monthly payments but if you want to save a little get it on your own.

Good Luck!!!!!

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Answer 2

You mean this?
http://personalinsure.about.com/od/policybasics/a/aa021405a_2.htm

You can bet that whatever the dealer is selling is ridiculously overpriced. Some regular insurance policies include gap insurance. Ask your insurer, and if it doesn't, you are likely to find that changing policies is cheaper than buying it from the dealer.

One way or another, you should have that coverage. Otherwise you could owe cash on a car that's destroyed, while also needing to buy another car.

Better to not be underwater at all, but if you MUST be underwater, find sane insurance for it.

Oh and NEVER owe money on a car that's out of warranty.

Answer 3

sellers who serve a geographically great section the place there are actually not any dealerships placed in the encircling communities will supply this provider as a cost extra provider. you may in user-friendly terms do business company in this sort with a nicely time-honored broking with a competent interior sight attractiveness - and it would additionally be clever to ask a close-by legal professional to sit down down in and evaluation ( for a fee - yet nicely worth it in case you have any reservations ) or have a banker or different respected interior sight business company individual study in the direction of the settlement formerly you sign something. All that being reported i will reiterate: Pay money! the superb achievable motor vehicle which you would be able to purchase is one which you would be able to pay money for. era. it particularly is low-fee to maintain and fix a used motor vehicle than it particularly is to make money and pay pastime on a clean one. And by technique of all means under no circumstances ever Fleece (hire) any motor vehicle for inner maximum use – the genuinely expenditures are a great way larger than that of financing and on the tip of the hire you've gotten no longer something – different than the doubtlessly hood of a huge over mileage charge and severe positioned on and injury expenditures. Even worse than a fleece are the “purchase here – Pay here” plenty which provide you with a great low weekly charge on a motor vehicle they're merchandising for often two times the honest marketplace fee at an pastime fee that would make any loan shark smile, on a observe which will enslave you for the subsequent 5 years a minimum of on a motor vehicle this is very just about specific to die in 2 years or much less! it particularly is a lot extra low-fee selection to purchase and shield a used motor vehicle and save the variety for a extra moderen and nicer motor vehicle a pair of years down the line. An older motor vehicle will additionally forestall money in this variety of decrease coverage expenditures too! stay away from the clutches of the predatory lenders – purchase money, Pay money. stay money and build genuine wealth.

Answer 4

meh. it's cheap and it'll stave off the value of the car depreciating (your car loses value from the second it is driven off the lot) also check with your insurance company, they may have their own gap coverage