In the process of possibly purchasing a 2009 TSX-tech. The dealer suggested I buy GAP insurance for the car. It would run me $699total and it would be financed into the loan. The car out the door tax, title, GAP etc. is $25000. What do you guys think, do I need this?

 

if you total the car/stolen/act of god happens, and you owe moar than what the car is worth, then gap insurance is a good idea.


Its very cheap insurance that will cover the gap that you owe incase anything happens.
whats it work out to? 10 bucks a month?
get it.

 

Ya, I see your point. It's just when I look at msn and kbb the car retails for $29k, so I really didn't see much of a point. I may still do it though, thanks for your input.

 

what is the value of the car????????
how many miles are on the car?

how much do you plan to put down?

if you're only going to finance 15k, and the car is worth 20k....then there would be no gap to cover.

 

KBB suggested retail value is right at $28k. There are 30,000 miles on the car. I am not putting anything down. I am financing the entire thing, $25k out the door.

 

yeah definitely worth getting.

 

if the car happened to be totaled today, you're going to have to come up with that 3k.
lol paying for a note, with nothing to show.

get the gap.

after reading Mcdavis' post, he's right you'll be out MOAR than 3k. at trade in value.

 

Gap is wise, especially if you're financing the whole bit.

Remember that in the event of a total loss of your vehicle (crash, flood, etc) the insurance company is likely NOT to give you market value (retail) but trade in value. So there is a considerable amount of difference there.
It's good peace of mind, and like justnspace said, it's less than 3 coffee's a month.

 

Just put that clause in your insurance... you'll be covered at a better price.

 

Thanks for the input guys!!

 

Definitely purchase GAP if your down payment (if applicable) and the loan is more than the car value. However be careful about rolling it into the loan as it may work out to be more than $600 if over a few years. Some things it is best to put the money down, but thats personal preference.

Matt

 

What do you think about no purchasing the GAP for $699. Then putting down $2k, then im only financing $22700.

 

^how long is the loan?
you need to spell out all the details in order for some help.


Ideally, you want a bigger dp.

 

A larger Down Payment will help with payments, HOWEVER, be sure to verify the cars trade-in value and DP otherwise in the event the car is totaled you'll be without a vehicle and still be responsible for the difference.

Also, some loans require GAP, so verify its not required.

So yes, a larger DP is a good direction, but think about all the factors. Oh and the APR you get on the loan is also a factor. If you secure a 0.9 or 0% (highly unlikely) then you'd be better off keeping the money in the bank or savings, get the interest and pay the loan. Though be sure there aren't any final fees or early payment fees.

Basically, look out for everything and move slowly, a car is a 5+ year decision, take your time and don't be afraid to contact other dealers, no matter how far away just to ask questions, then cross-check your answers, add in your research and you'll be rolling off the lot in your new car having got the best deal AND protected your ASSets

Matt

 

not too many savings accounts offer more than 1% interest these days... just another thing to think about.

 

Very true, though you could also look at a ROTH IRA or any other financial direction, however and I can't stress this enough.. IANAL*!!!

* I am not a lawyer OR financial planner.. just a car/web dude.

Matt

 

i heard that GAP insurance automatically comes with all Acuras

also its required for leased cars.

im lucky i had it because my car got totaled and insurance cut me a check for 5k for another 11' TSX.

 

I used to think GAP insurance was a scam but it isnt. Insurance companies over the years have changed they way they pay out on a totalled car. Like others have posted if you owe more than its worth then it is a good idea.

 

Here are my options, im at 3.9%

$393.86 for 72 months 0 down.
or put 2k down waive the $699 gap then $351 a month for 72 months.
or put 2k down waive the $699 gap, then $415 a month for 60 months.


im still comntemplating which one I want to do.

 

i dont think a 2k down will change your need for gap insurance.

 

seems like you're buying an expensive car that you cannot afford.
keep the loan for 5 years or less.
put down some money.
and get gap insurance.

 

lease it

 

I can afford it im just very tight with my money. See if I do the 0 down 72 months than I don't even notice a change in payment and $0 out of pocket.

 

I think that leasing will run me about $500 a month and I will have to put like $2500 down.

 

that makes no sense. leasing is usually cheaper

 

Go check Acura.com they will show you.

 

dont need to.

2 months ago i got a 11' TSX lease for 3 years. im paying $398 with gap insurance @ $4k down

if i financed it, id be paying close to $500-550.

thats why it doesnt make sense.

 

Tech? You also, put down 5k. I am not going to put down anything.

 

im just saying leasing is usually cheaper over financing a car regardless of down payment.

 

you are also talking about lease vs buy. they're not paying for the same thing, so you can't compare the 2 payments.

 

Right now its either $329 with $2500 down or $380 with 0 down for base model. If you want tech you can add $100 to each.

 

ask your sales guy what are the numbers if you cant finance it but rather lease it. your monthly payments will be less than $329 with $2500 down and $380 with 0 down.

 

For a tech, doubtful but you never know. I will check it out, thanks.

 

you say you're tight with your money, but usually cheap asses or smart people put down money up front. this will lessen the monthly payments...

be smart.
the way you're doing it, is not smart and will cost you in the long run in interest for 72 months.
if you cant put down money, look for a cheaper car.

 

I financed 72 months with my TL and I ended up just fine. Lets say I do put down $2000, I have calculated what I would be saving and it would take me roughly 46 payments to see that money come back. I could take that money and invest it elsewhere and see a profit in a much shorter time. I am also refinancing my car as soon as I receive it for 2.49%. I would say that is a pretty solid rate for a pre-owned vehicle.

 

That's an amazing rate for a preowned vehicle.
GAP saved me once...
Got Nissan Frontier used, hated it. Traded in for brand new EP Si. Was upside down 6000 on it after 2 years...totaled the Si and paid 100 deductible...insurance paid the rest and the GAP covered the difference. Got an RSX-S for $20 more a month.

 

Wow, crazy story. that is one of the reasons why I am going to get the GAP. You just never know what may happen.

 

I like how all the info is presented at the end of the thread....GJ.

but really, if you can get that 2.49% then thats awesome!
next time present all the details up front, so there wont be any questioning..

 

Guess I will put that next time, here is the final verdict.

2009 TSX-tech, 30,000 miles, lifetime powertrain warranty from the dealer, gap insurance, getting it delivered to Orlando from dealership tomorrow, full tank of gas upon arrival, 2.49% apr, 0 down, $25k otd.

Thanks for everyone's input, I appreciate it. I will post pics once I get it.

 

^72 months, 60 months, or 84?????

leaving out details!!! tisk tisk tisk