Protect your Equity (Gap Insurance or Agreed Upon Value)
01-19-2023, 09:28 AM
#16
I’d preface this with ‘everyone’s situation is different’ but here what I did. my out the door cost was $215k. I had about $150k in cash not using, so I financed the rest with the shortest term / best rate (2 years @ 1.99%)… lucky to find this rate in Q4 2022. My intention/goal is to pay off the $70k after 6 months… my personal finance philosophy is debt is generally not good for me (I understand many other philosophies exists so no need to argue math with me)
01-19-2023, 11:52 AM
#17
Pro
GAP Insurance in general is a huge money maker for dealers. I would never purchase it. With that being said, I pay extra on my Progressive policy for gap. It is significantly cheaper, not sure I remember the amount but it was basically nothing for a 6 month period (and also you don't pay interest on it).
01-19-2023, 01:14 PM
#18
If you have a reputable company, many times you will not have issues so long as you don't start the process underwater.
GAP insurance covers different things, pending on where you buy it.
Many companies will have some sort of "new auto replacement/security", in which your total loss vehicle will be values to a car 2 years newer.
For the record, I sell insurance for a living and put that endorsement on my own policy -- its worth every penny.
GAP insurance covers different things, pending on where you buy it.
Many companies will have some sort of "new auto replacement/security", in which your total loss vehicle will be values to a car 2 years newer.
For the record, I sell insurance for a living and put that endorsement on my own policy -- its worth every penny.