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Gap insurace

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Anonymous
Not applicable

Re: Gap insurace


@StartingOver10 wrote:

@Anonymous wrote:

@joedtx wrote:

Highly recommend GAP i'm amazed at what some dealers charge for it $1,200  but for you today only $900,  NFCU still offers it for $199

 


I have been following the industry by subscribing to some of the trade journals, dealers make an average of $1900 on each car in that finance office and their markup on GAP is a big reason. Of course they also mark up interest, sell crap you don't need and sell folks a warranty on cars with warranties so at least GAP has some real value but not for what they charge.


$900 to $1200 for GAP, that is insane.

 

Agree 100% with workingfor850, the finance person is not your friend. S/he is there to boost profits for the dealership as well as get you financing at a premium par rate (not a good thing). I understand that dealers need to make a profit, but it is the job of the consumer to reduce the expense as much as realistically possible in a purchase so the consumer and the finance person have opposite goals in that respect.

 

There is nothing wrong with getting a GAP policy - just get it from a different source as others above pointed out. GAP is insurance. I can tell you if the finance guy quoted $900 to $1200 gap to me, he would lose the whole deal as I would (and have) get up and walk out. To me, quoting a ridiculously high price implies he thinks I'm stupid enough to buy his BS. The F&I guy has complete authority over what he will quote for any of the given add-on items. So the higher the price, the less respect s/he has for you IMO. 


Last Saturday when we left the Chevy dealer we had been offered the best rate at 2.99, GAP at $995, Ext Warranty (I know feelings run hot, but we may want one as it's a new model year/platform) $3800 and other crap potentially thrown into the "payment" they try to sell you by extending your term. When we returned Monday with our own financing lined up at 1.74%, gap via insurance but could have cut $700 off by using DCU's, and Ext Warranty (similar, both via GM sort of) for $1700 via a dealer in PA found online...she knew to just power through the paperwork and not try to get anything else by us. 

Message 11 of 15
Anonymous
Not applicable

Re: Gap insurace

.


@Anonymous wrote:

@StartingOver10 wrote:

@Anonymous wrote:

@joedtx wrote:

Highly recommend GAP i'm amazed at what some dealers charge for it $1,200  but for you today only $900,  NFCU still offers it for $199

 


I have been following the industry by subscribing to some of the trade journals, dealers make an average of $1900 on each car in that finance office and their markup on GAP is a big reason. Of course they also mark up interest, sell crap you don't need and sell folks a warranty on cars with warranties so at least GAP has some real value but not for what they charge.


$900 to $1200 for GAP, that is insane.

 

Agree 100% with workingfor850, the finance person is not your friend. S/he is there to boost profits for the dealership as well as get you financing at a premium par rate (not a good thing). I understand that dealers need to make a profit, but it is the job of the consumer to reduce the expense as much as realistically possible in a purchase so the consumer and the finance person have opposite goals in that respect.

 

There is nothing wrong with getting a GAP policy - just get it from a different source as others above pointed out. GAP is insurance. I can tell you if the finance guy quoted $900 to $1200 gap to me, he would lose the whole deal as I would (and have) get up and walk out. To me, quoting a ridiculously high price implies he thinks I'm stupid enough to buy his BS. The F&I guy has complete authority over what he will quote for any of the given add-on items. So the higher the price, the less respect s/he has for you IMO. 


Last Saturday when we left the Chevy dealer we had been offered the best rate at 2.99, GAP at $995, Ext Warranty (I know feelings run hot, but we may want one as it's a new model year/platform) $3800 and other crap potentially thrown into the "payment" they try to sell you by extending your term. When we returned Monday with our own financing lined up at 1.74%, gap via insurance but could have cut $700 off by using DCU's, and Ext Warranty (similar, both via GM sort of) for $1700 via a dealer in PA found online...she knew to just power through the paperwork and not try to get anything else by us. 


I certainly understand why people want to protect themselves by buying an extended warranty but the odds of them paying off are terrible which is why dealers sell them and the companies make money. We bought a Honda Accord with the CVT transmission that makes me a tad bit nervous, I never buy a warranty but shopped around to Honda dealers to see what they would charge. Since I am with GEICO I decided to opt in to mechanical breakdown insurance which costs me $8.49 per month, covers everything other than wear items but has a $250 deductible. The benefit is I can stop paying this anytime I want and I am not putting myself into more debt to cover myself. I mentioned that I have been subscribing to industry journals and websites because I find the industry very interesting and may get into it when I retire. I went to a Finance and Insurance guy website and they had a long thread about how Geico MBP is costing them a ton of money because customers are declining their warranties in favor of this coverage. Anything the F&I guys hate I like. Something to consider.

Message 12 of 15
Anonymous
Not applicable

Re: Gap insurace

My car is worth 4grand less than what I owe. And did you just get the gap insurance from Allstate or from DCU? can you get just gap insurance? Cause I love my auto insurance carrier but they do not offer GAP.

 

Message 13 of 15
Anonymous
Not applicable

Re: Gap insurace

My car ins company does not offer GAP ins either, can anyone recommend someone that does? Thanks

Message 14 of 15
Anonymous
Not applicable

Re: Gap insurace


@Anonymous wrote:

I highly recommend Gap insurance. As soon as a car is purchased and leaves the lot there is a depreciation as well as fees that you paid that you will never see again such as registration, tax, dealer fees


 

Message 15 of 15
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