Gap insurance for financing

[NullCheck]

How much would you pay for a 75k loan? Is there anyway to get it from a place other than BMW? My insurance says if I want GAP, I need to finance it through their own bank. I need some guidance.

[IMrMark]

Originally Posted by NullCheck

How much would you pay for a 75k loan? Is there anyway to get it from a place other than BMW? My insurance says if I want GAP, I need to finance it through their own bank. I need some guidance.

I've somehow ended up with gap insurance twice, I was going to post about that as well.... but in your case, here is my situation:

1) gap insurance provided with my loan from PenFed. They just included it, I didn't even have a choice. Well, I probably did, but they didn't even bother to inform me, and it didn't cost "extra"
2) gap insurance provided by my car insurance co progressive. It's an option there, but I don't know how much it really adds month by month.

Who do you have for insurance if you dont mind the ask?

[Sedan_Clan]

If you lease through BMWFS, GAP is built in. If you don't want to do that, there's another company that offers it. Let me look it up and post back.

[NullCheck]

Not leasing it. It's finance. Dealer wants $900 for it. It's a bit excessive no? But I cant find it elsewhere.

[IMrMark]

Originally Posted by NullCheck

Not leasing it. It's finance. Dealer wants $900 for it. It's a bit excessive no? But I cant find it elsewhere.

my bank and insurance company actually didn't advertise it, both were built in and I actually stumbled across it 1st case by accident and 2nd case by reading through the financing paperwork when I got the check cut. I've had gap insurance on my subaru through progressive for over a year while I've held the title

[tooch]

Originally Posted by NullCheck

Not leasing it. It's finance. Dealer wants $900 for it. It's a bit excessive no? But I cant find it elsewhere.

Thats not to bad.

[r3dbimmer89]

I was offered $750 for BMW Gap insurance. I have Geico who doesn't offer it..

[NullCheck]

Originally Posted by r3dbimmer89

I was offered $750 for BMW Gap insurance. I have Geico who doesn't offer it..

What was the finance amount? How many months?

[r3dbimmer89]

Originally Posted by NullCheck

What was the finance amount? How many months?

I PM'ed you that info.

[NullCheck]

Originally Posted by r3dbimmer89

I PM'ed you that info.

Thank you got it

[RobbyMack]

You're missing the most mportant piece of information, how much did you put down? If it's 15% or more Gap insurance isn't likely necessary since it simply pays the difference between the cars current value and the loan amount.

[dapopa9]

GAP is garbage - dont get it

[mic_crispy]

Originally Posted by dapopa9

GAP is garbage - dont get it

How is GAP garbage?

[NullCheck]

In a brand new car like this that is so RARE that can get stolen so easy, GAP is not garbage. You have to be stupid not to get it.

[dapopa9]

Originally Posted by NullCheck

In a brand new car like this that is so RARE that can get stolen so easy, GAP is not garbage. You have to be stupid not to get it.

If you are running a car with negative equity then it could make sense. However many car dealers try to sell it to everyone on every car when often times it makes no sense. Also some regular full coverage insurance policies already have GAP like provisions built in for loan pay off in the event of a loss. So again in that instance it would be a waste of $$ to buy additional GAP coverage.

I guess if you are taking a 72 month or balloon type loan out on the car then you should probably not be buying the car in the first place and since you can barely afford the vehicle you better buy the GAP cus you would be fukd if you do have a loss and have zero $$ in your bank account to cover it.

[Sedan_Clan]

Originally Posted by dapopa9

If you are running a car with negative equity then it could make sense. However many car dealers try to sell it to everyone on every car when often times it makes no sense. Also some regular full coverage insurance policies already have GAP like provisions built in for loan pay off in the event of a loss. So again in that instance it would be a waste of $$ to buy additional GAP coverage.

I guess if you are taking a 72 month or balloon type loan out on the car then you should probably not be buying the car in the first place and since you can barely afford the vehicle you better buy the GAP cus you would be fukd if you do have a loss and have zero $$ in your bank account to cover it.

Dude you're way out in left field.


OP, don't listen to this nonsense. GAP will assist in the event of a total loss, a theft, etc. It's worth every penny for the peace of mind (..but obviously get the best deal that you can).

[ASAP]

I had this on Geico for like $6 a month... this shouldn't really be an issue of discussion.

[lifevicarious]

Originally Posted by Sedan_Clan

Dude you're way out in left field.


OP, don't listen to this nonsense. GAP will assist in the event of a total loss, a theft, etc. It's worth every penny for the peace of mind (..but obviously get the best deal that you can).

Isn't this only true if you put little down? How it it worth it if you put 15+% down? Seems like a waste to me.

[Sedan_Clan]

Originally Posted by lifevicarious

Isn't this only true if you put little down? How it it worth it if you put 15+% down? Seems like a waste to me.

Not everybody is putting $12k down on an $80k car, and even with that considered you will still have to deal with depreciation. To speculate that just because you put down a larger sum it somehow saves you from coming up short in the event of an accident is silly. There are many variables to consider, but in almost all of them GAP is worth it.

[RobbyMack]

I think some of these points above need some clarification, GAP insurance does not, I repeat, does not, pay you (the owner) for the difference between the cars value and the value of the loan. It only covers the difference in a negative equity situation (you owe more than its worth). So in essence if you are putting down 15% or more GAP will not respond for you for the life of the loan unless the cars depreciation curve is so severe (unlikely) that you're left holding part of the the bag in the event of a total loss.

[tdizzle]

Originally Posted by RobbyMack

I think some of these points above need some clarification, GAP insurance does not, I repeat, does not, pay you (the owner) for the difference between the cars value and the value of the loan. It only covers the difference in a negative equity situation (you owe more than its worth). So in essence if you are putting down 15% or more GAP will not respond for you for the life of the loan unless the cars depreciation curve is so severe (unlikely) that you're left holding part of the the bag in the event of a total loss.

This.

My friend sold cars for years and always tried to sell GAP insurance to his customers because it was profitable. He also told me privately never to buy it as it was like many of the other back end type things they sell - a complete waste of money to most buyers.

The short story is usually get GAP if you're buying a car and owe more than the car is worth when you drive it off the lot. Leasing and some insurances will force you into it so they can recoup their money in the event of a total loss and you owe more than the car is worth.

To each their own though. Piece of mind is hard to put a price on and if you're really worried about it buy it as it's not that expensive considering the car you're looking at, but like electronic insurance best buy sells, they're in it to make money off of you and you'll likely not get back your investment. There is a reason they sell it in the first place.

[Sedan_Clan]

Originally Posted by tdizzle

This.

My friend sold cars for years and always tried to sell GAP insurance to his customers because it was profitable. He also told me privately never to buy it as it was like many of the other back end type things they sell - a complete waste of money to most buyers.

The short story is usually get GAP if you're buying a car and owe more than the car is worth when you drive it off the lot. Leasing and some insurances will force you into it so they can recoup their money in the event of a total loss and you owe more than the car is worth.

To each their own though. Piece of mind is hard to put a price on and if you're really worried about it buy it as it's not that expensive considering the car you're looking at, but like electronic insurance best buy sells, they're in it to make money off of you and you'll likely not get back your investment. There is a reason they sell it in the first place.

From personal experience, GAP has saved my ass in a total loss accident and two thefts (..my '04 G35 coupe and my '07 GSXR 600). I'll never go without it. You never know when you'll need it.