Mercedes C300, Price is $38,000 . I will be paying $7,000 as down payment and financing $31,000 over 72 months. Gap insurance will cost me about $4.15 per month and the total is $299
2007-10-12 14:37:28 · 7 answers · asked by sirk9394 1 in Cars & Transportation ➔ Insurance & Registration
Get gap protection for the life of the loan. More importantly, if you can get a new car protection endorsement, carry it as long as it is available Your gap coverage will have an upper limit of whatever balance is left on the loan. New car protection will have an upper limit of the cost of the replacement including taxes, which could be thousands of dollars on a car like that.
2007-10-12 15:06:49 · answer #1 · answered by Fred C 7 · 1⤊ 0⤋
GAP insurance will make up the difference if you owe more on the car than it's worth. Example: You buy a brand new car from a dealer for $15k. A year later it is totalled. The insurance company says it's worth $12k, but you still owe $14k. The GAP insurance covers the $2k difference between the check from the claim, and the total you owe. Some GAP insurance will even give you some money for a down payment on another car since you no longer have a trade in.
2016-04-08 06:11:50 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yep - very good investment for 4.15 per month.
If your car were deemed a total loss - your insurance company will pay the actual cash value of the vehicle. Since vehicles tend to depreciate faster than you can pay them down in the first year or two - if the car gets totaled then you could be upside down (owing more than the car is worth). Contrary to popular belief - we pay what the car is worth - not the amount of your loan.
Gap coverage steps in to pay the difference between what your insurance company pays and the balance on your note.
Take it however you want to, but I'll put it this way - I total loss cars as part of my job - I would purchase the GAP coverage if this was my car.
2007-10-12 15:14:45 · answer #3 · answered by Boots 7 · 0⤊ 0⤋
You will lose over $7,000 the second you sign the dotted line. If you total it pulling out of the dealer lot you will be expected to pay that amount, so YES -- if you are dumb enough to finance a new Benz then you should get GAP.
2007-10-12 15:44:07 · answer #4 · answered by Anonymous · 1⤊ 0⤋
always carry gap on a new car. it depreciates the minute you drive off the lot. i have seen a LOT of people get themselves into a bad situation after having an accident and the note of the car is not paid off totally because they owed more than the car was worth at the time. Gap is cheap and can save you financially!
2007-10-13 01:14:38 · answer #5 · answered by Queen B 6 · 0⤊ 0⤋
I would go for the one with the best overall coverage that you can afford.
I use this site to find more information:
Auto Car A+ Insurance Transfer Service Resource
http://www.acats.net
All the best,
Noel
2007-10-13 09:36:57 · answer #6 · answered by Golf B 1 · 0⤊ 0⤋
How old are you? And what do you think.
Age + who am I/or basic mental thought = NO!
2007-10-12 14:41:02 · answer #7 · answered by Shade tree 3 · 0⤊ 3⤋
get a online quote ...
2007-10-12 14:41:38 · answer #8 · answered by Anonymous · 0⤊ 2⤋