Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





Gap Insurance

adm1exgadm1exg Posts: 2
My mistake, I didnt look for Gap insurance in the
contract. Is it possible to negotiate or purchase
after the sale? Leasing with Nationsbank Leasing
arm.
«13456723

Comments

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Adm1exg, I don't know Nationsbank's specific policy on this matter, but they may let you purchase gap insurance after you have signed your lease. I bet that gap insurance is a fairly profitable item for finance companies, because it is unlikely that your car will ever be totaled or stolen. If it makes you feel better to have it, and they are likely to make money on it, then I don't see why they wouldn't sell it to you. Give them a call and see what they say. Please come back and let us know what they told you. I'm curious.

    Your Host
  • adm1exgadm1exg Posts: 2
    Spoke to a rep at Oxford leasing(Now Nationsbank) and he said that all their leases have gap included as a zero cost item.I have his name but that may not matter two or three years from now if the car is stolen or totaled.I'm gonna try contacting my dealer if they can include a clause or something....has anyone else had any probs w/oxford in the past??
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    I leased a vehicle through Oxford several years ago. They had very good rates, but at the time gap insurance was not included in the basic lease agreement. It was an additional charge of a couple of dollars per month. I am not familiar with Oxford's current policy on gap insurance, it may have changed since then. I am currently leasing a vehicle through American Honda Finance Corporation and that gap insurance is included in my lease at no additional charge. Hopefully you will never have to take advantage of gap insurance. However, it is a good idea to make sure that you do have it, just in case you do run into some sort of major problem in the future. Better safe than sorry.

    Your Host
  • howeyhowey Posts: 2
    Chubb Insurance offers gap insurance on leased cars which are under you auto policy
  • ladykladyk Posts: 1
    I purchased a 1997 in 1998 and was told that I should have Gap Insurance. Is this insurance really needed on used or new car purchases.
  • Well, ladyk, you technically don't need gap insurance. Whether you should purchase it or not depends upon how risk averse you are, much like an extended warranty purchase decision. Gap insurance was included on the last two vehicles that I leased, but I don't think that I would have gotten it if I had to pay more than a few (very few) dollars extra per month.

    Your Host
  • n247zqn247zq Posts: 1
    Does anyone know if and where GAP insurance can be obtained after a lease - lease company says they can't do it.
  • I was shopping around when getting my new car and
    the dealer wanted $550 for GAP Insurance. Knowing
    that somewhere on the web I could get it for
    cheaper. After searching for a couple weeks I came
    across a site that did it for $225!. I would
    recommend this site if you want to save
    considerable money on your GAP insurance. Their
    web site is www.gapcontracts.com.

    Thanks,

    John
  • RE: JOHNHARPER

    All the leases that I have been involved in (Ford, GMC, Chase) have included the "gap" at NO additional charge. You are being HUSTLED big time. Don't go for it!! The dealer is ripping you off for additional profit. Tell him thanks, but no thanks ! How about your own insurance co? They shpuld be able to do a whole lot better than that if the leasing company you are dealing with really does not include it in the contract.
  • jdpearljdpearl Posts: 1
    Be careful of GAP protection, some states it is regulated like an insurance product and pricing is controlled by the individual states. Yes it is true that some manufacturers include gap in their leases. But the consumer is still paying for it in acquisition fees that are clearly stated on all these contracts. There is nothing for free in this world. Make your own decision consumer. GAP is designed for peace-of-mind. If you are rolling over negative equity from a trade-in, insurance settlement, or lease charges into a retail (finance contract) then you might want to consider GAP protection. Also when buying a used or a new car the difference between what you owe and what the payoff. There will always be a depreciation factor with most vehicles. Insurance is a risk and there must be a charge for it. That's the law
  • KCRam@EdmundsKCRam@Edmunds Mt. Arlington NJPosts: 3,495
    Hi Town Hallers!

    This topic has been frozen due to extended inactivity, and will be archived in the next few weeks. Please use our Search feature in the left margin to locate other topics in Town Hall that may be of interest to you by entering keywords that address your needs. Also, remember to check the "Archived Topics" in this conference, accessible from the main topic list page. If you discover that no other topics exist that satisfactorily answer your questions, please feel free to start a new one so that they can be addressed,

    kcram
    Co-Host - Smart Shopper & FWI Conferences
    edmunds.com Town Hall

    KCRam - Pickups/Wagons/Vans+Minivans Moderator

  • My dealership tried to sell me Gap insurance for
    $450.00 dollars. I looked on the internet and
    found other companies that I can purchase from for
    much less. Why is the dealer selling it for so much
    more? The GAP coverage that I found online was the
    same but at a much lower price.
  • Carless4, actually a large percentage of leases already include GAP insurance. Which bank is your lease through and what vehicle are you leasing?

    Car_Man
    Smart Shoppers / FWI Co-Host
  • Hello all,
    My fiancee and I just purchased a Dodge Neon
    2001 SE at 200 over invoice. In negotiations, I
    squished all of the major scams (extended
    warranties, credit insurance, etc.) but the dealer
    said we needed to have gap insurance at 450 or our
    APR would be going up from 9.3 to 9.7% and he said
    that Chrysler included GAP insurance. However, on
    the contract, I saw it as an extra charge??? We
    took it because it would raise our monthly payments
    with a higher financing rate...did we get screwed?
  • It's not real clear what you were offered but it makes sense that the dealer would offer two rates, a lower rate if you buy GAP insurance.

    Given the choice between 1. A 9.3% loan and having to buy GAP insurance for $450 and 2. A 9.7% loan with not GAP insurance requr (9.7%), then you should take the higher rate loan. That is because the higher rate results in only about $150 more in payments. It is better to pay $150 over 5 years than $450 today.
  • I am hearing from most of my friends around here that a 9.3% APR is way too high for purchasing a new car. It is probably our fault for not shopping around enough to get a good APR from another institution. We had the option of taking a 1500 dollar rebate or going with a lower financing rate over the five years. In the end, the lower monthly payments were with the rebate but overall, I think we should have probably got a lower APR because we will end up paying more over five years. Is this correct?
  • I may be wrong...but here in Florida i am told it is law that gap insurance is included with all leases...please correct me if i have been mis-informed as i do not want to pass bad information...Thanks!!
  • If you 90% to 100% finance your vehicle purchase and live in an area where your auto may get totaled - GAP is the way to go, BUT check with your credit union for this and extended warranty policies for lower costs.
  • rea98drea98d Posts: 982
    With a lease, Gap insurance is a must, simply to protect yourself. However, I thought we were talking finance and loans, in which case I thought comprehensive coverage from allstate, state farm, et al, would be suffecient. Can someone straighten me out?
  • akanglakangl Posts: 3,591
    With most leases GAP insurance is included, but if we are talking about a vehicle loan, no, GAP insurance isn't included. As for regular insurance......full coverage being enough, sure it would be enough if you are not in a negative equity situation with your car....owe more than replacement value of your car. If you are upside down in your car......as most people who finance for 60 to 72 months are, GAP insurance is a great thing to have. I purchased a 2000 Subaru Impreza 2.5RS in February and financed $24,000 on a $20,000 car (I was very upside down in a 1994 S-10 Blazer), the finance manager insisted that I buy GAP insurance, I had never thought of it before, but figured it was a good idea. Anyway, I traded the car in on a Nissan Quest in June and again find myself very upside down, so I again added GAP insurance to the loan. I figure for $399 I can't go wrong. I have known too many people who have bought a new car and then totalled it and found themselves having to shell out $3000 to $5000 to pay off their loan after the insurance company has paid the replacement value of the car. Remember, the bank doesn't have to take whatever the insurance company pays and call it good.......you are responsible for the remainder of the loan and the bank will get its money one way or another. Also, the insurance company isn't responsible for paying the entire loan, they only pay replacement cost of the car or fair market value, not what the car cost new. So if you bought a brand new car and totalled it 6 months later, guess what.....you are going to get the value of a used car, not new and most new cars depreciate pretty hard when you drive them off the lot. GAP insurance is good protection.
«13456723
Sign In or Register to comment.