GAP Insurance...Needed or a waste?

[playforcash]

Originally Posted by Ricirich071

If you bought GAP insurance from the dealer, YOU GOT SCAMMED!

I BOUGHT IT THRU MY BANK. WHERE'S THE SCAM?

[anyuser]

I didn't get the GAP insurance because I don't expect to be "upside down" on my loan for very long. I figure if I do get in an accident while I owe more than the truck is worth I can just put the difference on my credit card.

[Ricirich071]

The scam is you probably paid 500, 700, 900 for it, plus the interest on that amount because it was financed with the rest of your deal.

It's insurance right? GAP is offered by your insurance company. I pay 15.63 for GAP every 6 months. If I carried GAP though my whole loan term of 5 years I pay 156.30 total. You paid 500, 700, 900 plus interest.

The other thing is you only need gap when you are upside down on the car. On a 5 year loan, you are usually only upside down 3 years. That means for me, I would only be paying 93.78.

Anything they offer you in the finance dept. after you've made your deal is gravy money for the dealership. It's how they get back some money you grinded them on while making your deal. Products like undercoating, paint protection, extended warranties, alarms, GAP, and Scotchgard can ALL be purchased outside the dealership and almost always at a better price.