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Weather Man

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You should NEVER get GAP. If you do then that means you're making a bad financial move because as others have stated, you should never be upside down on a $40k car....you should have bought a cheaper car.
And then there is the real world.
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Dominant1

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I got gap even though i put 11k down. The value of these cars goes down quicker then your loan balance will, especially when your at the ass end of your loan...thats where gap pays off. According to nada my car's value is about 32k which is about what my balance is and ive had the car for only 7 months! 4 years from now there will be a large gap between what i owe and what the car is worth, and if it gets totaled the gap will cover it ! For a total cost of $750 gap Makes sense to me!
 

magnetic16gt

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I got gap even though i put 11k down. The value of these cars goes down quicker then your loan balance will, especially when your at the ass end of your loan...thats where gap pays off. According to nada my car's value is about 32k which is about what my balance is and ive had the car for only 7 months! 4 years from now there will be a large gap between what i owe and what the car is worth, and if it gets totaled the gap will cover it ! For a total cost of $750 gap Makes sense to me!
I tried my hand at selling VW's before joining the military. I don't think I ever sold gap insurance. After the first year or two, the depreciation really slows down.

A quick search on NADA places a '13 GT Premium with 48k miles (assuming it's a daily driver) at about 22100-23500 for clean private sale. That car MSRP'ed for about 36k. Even at full sticker and 11k down, at 4 years, there should be plenty of equity in it.

Not knocking anyone for getting GAP insurance...you hope you never need it, but if you are upside down, it can really save you financially.
 

RocketGuy3

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I got gap even though i put 11k down. The value of these cars goes down quicker then your loan balance will, especially when your at the ass end of your loan...thats where gap pays off. According to nada my car's value is about 32k which is about what my balance is and ive had the car for only 7 months! 4 years from now there will be a large gap between what i owe and what the car is worth, and if it gets totaled the gap will cover it ! For a total cost of $750 gap Makes sense to me!
Four years from now the gap will be large? What is the length of your loan, if you don't mind me asking?

Also crazy that your car has depreciated over 11K in seven months...

Your example, though, makes it clear that there are obviously lots of variables: length of your loan, amount of downpayment, interest rate, rate of depreciation, and purchase price that you negotiate.

I got a 66-mo loan at 1.65% with $4K down on a $39.5K OTD purchase, and at least according to kbb, I've never been upside down, though I've been right on the edge most of the time. Recently decided to start paying down the loan a little faster, though.
 
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Litenin75

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I got gap even though i put 11k down. The value of these cars goes down quicker then your loan balance will, especially when your at the ass end of your loan...thats where gap pays off. According to nada my car's value is about 32k which is about what my balance is and ive had the car for only 7 months! 4 years from now there will be a large gap between what i owe and what the car is worth, and if it gets totaled the gap will cover it ! For a total cost of $750 gap Makes sense to me!
Seriously? What are you paying like $100/month. There is no way you will be upside down on your loan in 4 years and gap only benefits upside down loans.
 

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PatrickGT

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I got gap even though i put 11k down. The value of these cars goes down quicker then your loan balance will, especially when your at the ass end of your loan...thats where gap pays off. According to nada my car's value is about 32k which is about what my balance is and ive had the car for only 7 months! 4 years from now there will be a large gap between what i owe and what the car is worth, and if it gets totaled the gap will cover it ! For a total cost of $750 gap Makes sense to me!
So like 30% interest here, or...?
 

mustang51

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I wrecked one of these at 16 drag racing and regret it to this day !
1969 Ford Mustang Mach 1 390ci
Thanks for posting what a great pic. To the OP sorry to hear about your prang, but pretty bad decision to turn in front of a speeding woman driver on a phone or whatever.

Twice in 38 years of driving I have had incidents trying to get to work on time. Once I crashed into the back of a car. My stupid fault. the second time I tried to get to work with an overheated engine and cooked the head. Cost me $2000 to fix the engine. I never push it now just to get to work. If I am a few minutes late I apologise to my boss when I get there.
 

Old 5 Oh

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Can't imagine it will total. $10k to $15k in damage, all in front of the engine. If the air bags didn't blow, the chance of frame damage is slight. Find the best shop in town and let them work their magic. Probably won't be able to find the repair when they are done.
 

Falcon01

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You should NEVER get GAP. If you do then that means you're making a bad financial move because as others have stated, you should never be upside down on a $40k car....you should have bought a cheaper car.
This is terrible advise. You think putting down more than 35% on a car loan should always be done? Why? Manufacturers offer such great low rates now as low as 0% or 1.9% if you want all the incentives. Why put down $12-15k of cash on a depreciating asset like a 35k car? At that point, just pay for it in cash at that point. You can easily make more than 5% in the market if you don't invest into stupid shit.

Hell, GAP only costs $300-$500 depending on coverage and car. It's a one time payment as well.

What I would do, if you your credit is good enough to get approved is negotiate for a good price for the car, ask for a $5k check back and raise the price of the car $5k. This way, you have slightly higher monthly payments, but $5k in cash. Make sure to get GAP. This way, if the car is totaled, you get to keep an extra $5k cash.
 

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kwpony

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Front end still looks better than a 2018.
No argument here. I saw an extensive video on tv yesterday and I just can't muster any significant affection for the MY 2018. Maybe when I see one in person I'll feel diferent. I also think the rear lights look better on the 2015- 17. That front end is terrible. :tsk:
 

lemers

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My condolences to the OS for his loss
 

TexArmageddon

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Can't imagine it will total. $10k to $15k in damage, all in front of the engine. If the air bags didn't blow, the chance of frame damage is slight. Find the best shop in town and let them work their magic. Probably won't be able to find the repair when they are done.
Airbags don't have to deploy for a car to be totaled. Back when my 03 Mustang was actually still fairly a new car.. I was T-boned bags never deployed.. Totaled.

Regardless, if you all read a few threads up he's stated even though he could see no apparent damage near the door... One of his doors would not open. So not all the damage is up front.
 

zombiekiller

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I got gap even though i put 11k down. The value of these cars goes down quicker then your loan balance will, especially when your at the ass end of your loan...thats where gap pays off. According to nada my car's value is about 32k which is about what my balance is and ive had the car for only 7 months! 4 years from now there will be a large gap between what i owe and what the car is worth, and if it gets totaled the gap will cover it ! For a total cost of $750 gap Makes sense to me!
wtf sort of term and interest rate are you into?

The only reason that I'd EVER have a loan on a vehicle go over 36 months would be if my investments will make more per year that inflation + the interest rate.

Otherwise that is a pretty poor financial decision.

For example...

0% for 36? yep. Minimal down (to cover TTLR, Etc,) (never finance non secured parts of the transaction) use the entire 36 months to pay it off.

1.9% for 48 - Yep. Blended return per dollar on my portfolio is 6.8% at a bare minimum.

5.9% for 72 months? Yep! still making at least 1%. if i paid cash, I'd lose 1% of whatever the cash outlay differential was. ( if it was 32K financed, i would have cheated myself out of a bare minimum of $320. that buys a lot of brunches at ihop when you retire and get the good discounts. ;))

if you have CC debt, you have no investments, etc. if you cant pay cash, you should only finance for the duration that you can secure 0%, otherwise you are cheating yourself, or buying a car that you can't afford.

Gap insurance is for people who make awful financial decisions and have no inclination as to managing money/wealth.
 

Coolmanfoo

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wtf sort of term and interest rate are you into?

The only reason that I'd EVER have a loan on a vehicle go over 36 months would be if my investments will make more per year that inflation + the interest rate.

Otherwise that is a pretty poor financial decision.

For example...

0% for 36? yep. Minimal down (to cover TTLR, Etc,) (never finance non secured parts of the transaction) use the entire 36 months to pay it off.

1.9% for 48 - Yep. Blended return per dollar on my portfolio is 6.8% at a bare minimum.

5.9% for 72 months? Yep! still making at least 1%. if i paid cash, I'd lose 1% of whatever the cash outlay differential was. ( if it was 32K financed, i would have cheated myself out of a bare minimum of $320. that buys a lot of brunches at ihop when you retire and get the good discounts. ;))

if you have CC debt, you have no investments, etc. if you cant pay cash, you should only finance for the duration that you can secure 0%, otherwise you are cheating yourself, or buying a car that you can't afford.

Gap insurance is for people who make awful financial decisions and have no inclination as to managing money/wealth.
Damn! I was hoping we had a few know it all's lurking on this forum, now we can bathe in their unending knowledge
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