GAP insurance on bronco worth it?

[gentlemanbronco]

Long story short, when I was younger and dumber I got taken to the cleaners on my 1st vehicle purchase. Having learned from my mistakes, I want to avoid any newb mistakes when purchasing my bronco and negotiating the final price and fees. I know I can probably negotiate the dealer prep fees, the doc fees, but I was curious about GAP insurance. I purchased it in the past but is it really worth it with the current car market and the bronco in high demand? I figure the resale value for the first few years will still be pretty decent as jeeps hold their value pretty well on resale. I think I read that the credit union I'm going to finance thru offers it as an add on to a loan, so just curious what everyones opinion is on GAP insurance for the bronco.

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[Gamecock]

It’s never worth it. Don’t ever consider it.

 

[Bronco4lyfe85]

YES. Gap is non negotiable, this shouldn’t even be a question if you’re financing the car and aren’t putting down significant amounts of money.

Buy it from your car insurance. It’s like $5-10 a month through them for 5-6 years instead of $1000 at the dealer.

 

[gentlemanbronco]

It’s never worth it. Don’t ever consider it.

That was fast! Could you possibly elaborate? I figure most things will be covered under warranty or even recall.

 

[martyb]

It’s never worth it. Don’t ever consider it.

It is for someone with neutral or negative equity going into a finance contract if they can’t afford to pay some cash for depreciation if they total their vehicle.

 

[Gamecock]

That was fast! Could you possibly elaborate? I figure most things will be covered under warranty or even recall.

It is the most profitable car insurance product, and the least often used. Self insure for that little piece throughout your life and you will come out far ahead. If you don’t have a cash reserve to fill that gap, I would focus on building it, not insuring to fill that gap.

 

[gentlemanbronco]

YES. Gap is non negotiable, this shouldn’t even be a question if you’re financing the car and aren’t putting down significant amounts of money.

Buy it from your car insurance. It’s like $5-10 a month through them for 5-6 years instead of $1000 at the dealer.

Could you elaborate as well? I know it depreciates as soon as you leave the lot but with it not being available on lots for at least another year the value of the vehicle should hold pretty strong for a while I assume

 

[Bronco4lyfe85]

It’s never worth it. Don’t ever consider it.

This is terrible advice. It could be $250-300 through your insurer. You’re going to risk totaling you car and having to cover that out of pocket over a couple hundred bucks? I know 4-5 people that gap has saved their ass because it covered 4-8K when their car got totaled.

 

[broadicustomworks]

Long story short, when I was younger and dumber I got taken to the cleaners on my 1st vehicle purchase. Having learned from my mistakes, I want to avoid any newb mistakes when purchasing my bronco and negotiating the final price and fees. I know I can probably negotiate the dealer prep fees, the doc fees, but I was curious about GAP insurance. I purchased it in the past but is it really worth it with the current car market and the bronco in high demand? I figure the resale value for the first few years will still be pretty decent as jeeps hold their value pretty well on resale. I think I read that the credit union I'm going to finance thru offers it as an add on to a loan, so just curious what everyones opinion is on GAP insurance for the bronco.

You are going to get all opinions on this, across both ends of the spectrum.
For me, yes.
I bought a new F150 4X4 Lariat in 03, no issues.
Lost my job 6 months later and struggled, ended up deferring a few payments to the end of the loan.
A teenager in a Cavalier T-boned me about 2 months later, totalled vehicle.
The difference between Payoff and value at that point was almost 3K. And the GAP insurance I had had a clause that it would only cover that IF payments were up to date during the life of the loan. Meaning ONE late/missed/deferred payment and it's a done deal.
I have seen some that have a "job loss" provision for up to 3-6 months that covers you.

Sometimes that is worth it alone if your coverage has that clause and you see no issues.
In this day and time nothing is certain.

 

[Bronco4lyfe85]

Could you elaborate as well? I know it depreciates as soon as you leave the lot but with it not being available on lots for at least another year the value of the vehicle should hold pretty strong for a while I assume

It costs peanuts through your car insurer, simple as that. Is the risk worth the $3-5 a month?

 

[guerro]

With the popularity and demand for the Bronco, I highly doubt you would have any gap in the first year should anything happen. For me, I wouldn't get it. But you have to decide what is best for you and your tolerance for risk.

 

[Judge Rufus]

when purchasing my bronco and negotiating the final price and fees.

You've been saving this for when you take delivery?

Just get the gap insurance.

 

[MUDLVR]

It's good if you are trading in a vehicle and owe more on the car loan than the car is worth. It helps pay off your auto loan if your car is totaled or stolen and you owe more than the car's depreciated value. If you still owe more on your loan or lease than the vehicle's depreciated value then that's where gap insurance may help.

Here's an example of how gap insurance may work: Say you bought a brand-new Bronco for $55,000. You still owe $40,000 on your loan when the truck gets totaled. Your collision coverage would pay your lender up to the totaled car's depreciated value — say it's worth $39,000. If you don't have gap insurance, you would have to pay $1,000 out of your own pocket to settle your auto loan on the totaled truck. If you have gap insurance, your insurer would help pay the $1,000.

Bottom line though in my opinion is that you do not need GAP with a new Bronco because the vehicle will not depreciate drastically anytime soon. But if you do want it, I would go through your insurance company as opposed to the dealership

 

[Gamecock]

This is terrible advice. It could be $250-300 through your insurer. You’re going to risk totaling you car and having to cover that out of pocket over a couple hundred bucks? I know 4-5 people that gap has saved their ass because it covered 4-8K when their car got totaled.

My advice is based on financial principles…yours is based on “I know 4-5 people”. That’s the difference. I guess you never wondered why gap insurance is pushed so hard….

 

[gentlemanbronco]

You've been saving this for when you take delivery?

Just get the gap insurance.

I haven't ordered yet smarty pants... Some of us are waiting for MY22

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