You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today!
If you have any problems with the registration process or your account login, please contact contact us.
Pricing and DealersDiscussions that are specific to vehicle pricing, preferred dealer pricing, current incentives, rebates, and experiences.
This is a discussion thread titled "GAP Insurance...Needed or a waste?", within the Pricing and Dealers forum, part of the Marketplace Forums category.
It's all a matter of down payment. If you drove off with 10% or less down, then you definitely made the right decision. Gap insurance is like any other insurance you have. You hope you don't have to use it, but you will be glad that you have it if something happens.
__________________
Allen Read
Internet Sales Manager
Elk Grove Toyota
916-405-8000 aread@elkgrovetoyota.com
I personally do not like putting down payments on vehciles if my interest rate is lower than interest that can be gained from that money being in an investment account. GAP insurance protects my investment for a marginal cost. I vote YES for GAP.
__________________ 2007 Tundra CrewMax, SR5, 4x4, 5.7L, TRD MODS: DVD Headrests, Access Lorado Tonneau, BFG All-Terrain T/A's, Brushed Stainless Running Boards, Zoomers Exhaust, TRD Cold Air Intake, and Backup Camera
You just bought a truck thats about $30,000 with minimal down, 6 months later you total the truck the Insurance company will only give you Bluebook not what you owe. Lets face it after 6 months or even a year you are upside down on your truck, and you will be very happy you bought the gap Insurance. Very wise move on your part I did the same.
Didn't put anything down and financed the whole truck - I took the gap insurance. I don't want to owe anything if my truck gets totalled. My wife wanted it. She too did not want to owe anything if I happen to be in my truck and it gets totalled.
__________________
2007, Toyota Tundra Double Cab, De-badged Slate SR-5 4x4. 5.7 V8, Tow Package, Rear view camera, Bed Rug, Line-X, SKYFi2 XM Radio, Console Vault, Garmin GPS, A.R.E. Z-series cap, SuperSprings. Best of all, RETIRING on 12/30/2007!!! 2004 Jeep Rubicon, 2006 Chev Impala SS (wife's car) and wife's new toy - A red MINI Cooper.
Cars/Trucks are the WORST investment and I NEVER put any money down especially when I can get zero to 2.9% interest. I take my $5k down and put it in a CD making 5.5%. Ok, now for GAP insurance. Since I own a Domestic truck it is imperative that I have GAP insurance. I purchased my 2005 Dodge Ram 2500 Laramie 4x4 with the Cummins with all the extras for $50k out the door including Washington State Liberal Tax and Licensing on a 6 year loan at 2.9% for $835 per month. 2 years later I owe $35k, but my pickup is worth $28k. So if my truck is totaled I’m out 7$k. It only makes sense to put GAP insurance which I have. I am thinking that another two years she should balance out and I can get rid of GAP.
Why do people put money in a vehicle that can make more money in a CD or Mutual fund. Does not make sense unless you have bad credit and you are looking at interest rates over 3.9%
I'd say that if you're the type that would save the $18 per month over 2 vehicles, it's not worth it because you could easily accumulate the amount needed to cover the average gap in several years. If you're the type that would just spend the extra $18 per month then you should get the insurance.
By the way, do you still pay the gap insurance even when you're NOT upside down? If so, then it's a total scam.
__________________
2007 5.7 CrewMax Limited 2WD; Pyrite Mica/ Red Rock Leather
20" Alloy | Nav-JBL | Moonroof | Sonar | Cold Kit | Daytime Running Lights | BedRug | ConsoleVault | SoftTopper | TRD sway bar | Weatherguard Tool Box
NAV Mods: Speed Pulse Generator | AUX video input
Buy your truck outside of the Gulf States Toyota monopoly if you don't want to compromise.
I'd say that if you're the type that would save the $18 per month over 2 vehicles, it's not worth it because you could easily accumulate the amount needed to cover the average gap in several years. If you're the type that would just spend the extra $18 per month then you should get the insurance.
By the way, do you still pay the gap insurance even when you're NOT upside down? If so, then it's a total scam.
That does not make any sense to save the $18 per month. What if you get an accident on the way home from the dealership? You will be out at least $5k and you don't even have $18 bucks yet.
Cars/Trucks are the WORST investment and I NEVER put any money down especially when I can get zero to 2.9% interest. I take my $5k down and put it in a CD making 5.5%. Ok, now for GAP insurance. Since I own a Domestic truck it is imperative that I have GAP insurance. I purchased my 2005 Dodge Ram 2500 Laramie 4x4 with the Cummins with all the extras for $50k out the door including Washington State Liberal Tax and Licensing on a 6 year loan at 2.9% for $835 per month. 2 years later I owe $35k, but my pickup is worth $28k. So if my truck is totaled I’m out 7$k. It only makes sense to put GAP insurance which I have. I am thinking that another two years she should balance out and I can get rid of GAP.
Why do people put money in a vehicle that can make more money in a CD or Mutual fund. Does not make sense unless you have bad credit and you are looking at interest rates over 3.9%
Because my financial advisor, who is one of the best in the U.S., told me to just pay cash. The only thing I ever finance is a house because it goes up in value. That income from the bank goes right on top of your income so you don't really get what the bank pays you. Also, it may depend on your tax bracket. I lost money because of AMT last year. This year will be no different after buying the Tundra.
I guess you and Donald Trump must use the same financial advisor. Lucky for you.
You have to: 1) Start saving the $18 from month from day one of car ownership; 2) You have to have access to about $5K to $10K. It's like renting vs. owning your furniture. You can rent your GAP fund ($18 per month for two vehicles) or own it ($5K is probably enough). Just don't wreck your two upside-down vehicles into each other and total them both.
So, do you still pay the gap insurance even when you're NOT upside down on the loan?
__________________
2007 5.7 CrewMax Limited 2WD; Pyrite Mica/ Red Rock Leather
20" Alloy | Nav-JBL | Moonroof | Sonar | Cold Kit | Daytime Running Lights | BedRug | ConsoleVault | SoftTopper | TRD sway bar | Weatherguard Tool Box
NAV Mods: Speed Pulse Generator | AUX video input
Buy your truck outside of the Gulf States Toyota monopoly if you don't want to compromise.
gap is not insurance, it is a waiver of liability in the event the vehicle is totaled or stolen leaving a negative balance. Don't pay for gap through your insurance company. If the vehicle is finance, purchase your gap waiver through your bank, it will be much cheaper, and much more comrehensive (generaly a bank's gap addendum will pay upto $1000 worth of your insurance deductables, upto 150% of the nada value at the time of the loss (upto the reamaining balance of the loan) and give you a $1000 additional as an insentive to replace the previous vehical in the event of a loss (generally stipulating you purchase your new vehicle within 90 days and finance it at the same bank.)
We (here at Alaska USA FCU) charge a flat $255 fee, which is added to the end of the loan (to the principal balance) and your payment doesnt change, it is the last payment you would make on the vehical instead of the standard truck payment. It covers the loan for its entirety, not just as long as you pay for it (as with a monthley cost) $8 a month can add up fast, and they are going to be alot more likley to try and weasle their way out of paying you (thats what insurance companies are best at)
TundraSolutions.com is a registered trademark of Tundra Solutions, Inc.
Other trademarks and brands are the property of their respective owners. Use of this Web site constitutes acceptance of the TundraSolutions.com User Agreement and Privacy Policy.
GAP Insurance...Needed or a waste?
2007 Tundra SR5 Crewmax, 4X4, 5.7L, TRD, Moonroof, Slate Metallic, Revtek 2.5" Lift Kit, Daystar 3" Lift
Linear Mode
