That buffer is typically in place to cover your sales tax, doc fees, etc. that result from your vehicle replacement.One of the pics above shows 110% of MSRP.
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That buffer is typically in place to cover your sales tax, doc fees, etc. that result from your vehicle replacement.One of the pics above shows 110% of MSRP.
^ ThisLook up GAP insurance.
Sure they will. Buying a $50k vehicle with $10k trade in which still owes $30 you can easily get a loan for $70. Happens all day every day. You can even roll unpaid purchase balance into a lease. Ask me how I know........For the people that donāt know, a bank will not lend over what the Broncos MSRP is. Typically if a dealer can prove āmodificationsā increased value they might. Think the Tuscany/rocky ridge trucks dealers have. So the people paying ADM are either paying cash or putting a large deposit down to finance the bronco at MSRP. Now they could put agreed value on their policy, if something were to happen but you pay extra for it and the insurance has to agree itās worth X. Iām pretty sure GAP or regular insurance will not cover anything over MSRP.
No way GAP insurance is going to cover a $25k dealer markup over MSRP. People who are willing to pay that to be the first Bronco owner on the block clearly have cash to burn and will have to accept the fact that their cash was actually burned if they happen to total their vehicle.^ This
Take out a loan/lease for the entire purchase price and buy gap insurance. In theory, if the vehicle is worth less than your loan the gap insurance covers the difference. It'll cost a few grand in interest & fees to go the loan/lease route but if you're putting $20K at risk it could be worth it.
We already had to do this with my wifeās infinity q50s. They did an entire refresh between her totaled 2015 and the new 2016. To get the features she had on her 15, we had to go way up in price for the 2016. They didnāt care at all. Said just send them the contract and they paid it. They spent 30k over the value of her totaled car. I would have no doubt they would pay $5k over MSRP. Over that may be an issue.I'd bet they wouldn't pay over MSRP for it though, in which case you're getting your replacement Bronco in 2 - 4 years.
Question is where do you get a loan for an amount over MSRP? Not any banks that I know of would do that.^ This
Take out a loan/lease for the entire purchase price and buy gap insurance. In theory, if the vehicle is worth less than your loan the gap insurance covers the difference. It'll cost a few grand in interest & fees to go the loan/lease route but if you're putting $20K at risk it could be worth it.
Dang, I wouldn't want to go down that road. I was recently watching a video from an x-sales guy about stuff he saw. Touched on car buying perils, and about how some people do that a few times and end up severely underwater in debt. Danger Will Robinson!Sure they will. Buying a $50k vehicle with $10k trade in which still owes $30 you can easily get a loan for $70. Happens all day every day. You can even roll unpaid purchase balance into a lease. Ask me how I know........
For the people that donāt know, a bank will not lend over what the Broncos MSRP is. Typically if a dealer can prove āmodificationsā increased value they might. Think the Tuscany/rocky ridge trucks dealers have. So the people paying ADM are either paying cash or putting a large deposit down to finance the bronco at MSRP. Now they could put agreed value on their policy, if something were to happen but you pay extra for it and the insurance has to agree itās worth X. Iām pretty sure GAP or regular insurance will not cover anything over MSRP.
Agreed Johnny, typically a loan (depending on credit rating) will allow for 120/130 even 150% of the MSRP of the vehicle. Not to say that is always a great idea, but depending on your financing you may qualify for, and the current market/bank conditions, your bank might allow for a large amount over the costs of the vehicle... You can watch videos like the one linked below that explain how that can work in some detail. That just isnt the case Monster1926 and hasnt been for some time now. Most banks will lend over the MSRP of the vehicle.Sure they will. Buying a $50k vehicle with $10k trade in which still owes $30 you can easily get a loan for $70. Happens all day every day. You can even roll unpaid purchase balance into a lease. Ask me how I know........
It's not totally foreign. Dealers somehow cut loans for people with negative equity on their trade-in. For example, a loan that covers the cost of the new car and the $3000 difference between what you owe on your trade-in and what the dealer is giving for it.Question is where do you get a loan for an amount over MSRP? Not any banks that I know of would do that.
Yep this is the only thing that is going to cover you in the event of an accident after paying over bluebook market value or carrying a loan greater than the value of the vehicle.Look up GAP insurance.