GAP INSURANCE DO AND DON'T

[LarryZiegler]

Great question and I do not know the answer to it. From what I recall GAP is not included and is an option.

It differs from mfg on leases. BMW, Acura, and I believe Honda include it in their leases.....likely some others do too. Some don’t offer it at all

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[BuckinT29]

@NayNay have any info on the FE interior?

 

[AzScorpion]

Car insurance is always based on ACV, not Replacement Cost, unless you buy that option with a new car purchase. It also has coverage limitations. New Car Replacement can’t be bought with used cars. The closest thing is Liberty Mutual, who offers a 1 year newer valuation on a total loss.

Yes I purchase that extra on my insurance. I always buy new vehicles every 3 years for my business so there's plenty of equity there when I trade one in.

 

[NayNay]

@NayNay have any info on the FE interior?

No. Do you have a specific question you want me to try and get an answer for? I'm off tomorrow so I've got zero to do. It would be a great day to harass my rep and others. ?

 

[atonge40]

My 2019 Ranger lease included GAP.

 

[j_marinelli]

@NayNay

Quick question. Can a dealer tell you GAP insurance is required for the transaction due to a negative equity trade in? My first auto purchasing experience I had this happen to me and always wondered if it was a sales ploy to pick up the gap insurance. LOL been dwelling on that one for 15 years too.

 

[martyb]

@NayNay

Quick question. Can a dealer tell you GAP insurance is required for the transaction due to a negative equity trade in? My first auto purchasing experience I had this happen to me and always wondered if it was a sales ploy to pick up the gap insurance. LOL been dwelling on that one for 15 years too.

Back in the day when I was in F&E, there we situations where the lender required GAP in order to approve a loan due to big negative equity. It is pretty rare though...

 

[AZHUND]

Being a sucker and paying for gap insurance on my first financed car out of college is one of my top car-buying regrets. The finance manager made it sound like I would surely go bankrupt if I ever had a car accident. But basic math if you pay a meaningful down payment and don't finance for some extreme period (looking at you 84 months loans), it will never be a factor in first place. Just handing them money you could spend on something with value - like some sweet pod lights.

 

[toughtoaster]

I know this might be slightly out of scope of the original thread, but what are the positives and negatives to financing at 60-84 months with a 20+% down payment to get the monthly payments lower but pay down the loan with extra cash on hand? Would GAP be needed then?

Example:

$50k purchase with 20k down and 30k financed for 84 months. Let’s say 0% interest for ease of math. That’s 30k/84 = $357/mo and I intend to make payments of $500+/mo as my finances allow.

Would I need GAP? Does it even make sense to do that?

 

[BuckinT29]

No. Do you have a specific question you want me to try and get an answer for? I'm off tomorrow so I've got zero to do. It would be a great day to harass my rep and others. ?

No. Do you have a specific question you want me to try and get an answer for? I'm off tomorrow so I've got zero to do. It would be a great day to harass my rep and others. ?

Are they going to reveal a pre-production model? Every trim has been teased expect for the FE- would like a better view of the navy pier interior. The CGi online is pretty bad.

 

[NayNay]

@NayNay

Quick question. Can a dealer tell you GAP insurance is required for the transaction due to a negative equity trade in? My first auto purchasing experience I had this happen to me and always wondered if it was a sales ploy to pick up the gap insurance. LOL been dwelling on that one for 15 years too.

It is illegal to do that. You may have needed it but it is not required.

 

[NayNay]

Are they going to reveal a pre-production model? Every trim has been teased expect for the FE- would like a better view of the navy pier interior. The CGi online is pretty bad.

Here is my reps reply "I think you are asking if there will be a public display model for the first edition prior to release of the reserved units? There has been no communication from Ford about anything like this"

 

[LandCruiser]

Some unscrupulous dealers will try to sell your gap insurance or other forms of non-payment insurance even if you practically already own the car based on the trade value and the down payment.

Furthermore, constantly being in a situation where a depreciating asset is worth less than what you owe is not a good position to be in… Ever.

 

[BuckinT29]

Here is my reps reply "I think you are asking if there will be a public display model for the first edition prior to release of the reserved units? There has been no communication from Ford about anything like this"

bunmer, we all want to see what the navy pier looks like. It’s the only color that’s not shown outside of the site

 

[BillyGoat]

Is gap insurance worth it if you’re putting down more than 20%?

Good question. I hear this a lot...actually in the vehicle industry (work for a mfg.) as a sales/F&I trainer. To be safe, I’d tell you to also pay for your added accessories, taxes and any associated fees too. If you paid for all of this and your loan amount you may be in a safe position. The only unknown variable is the rate of depreciation.

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