[u35828]

For US owners, if you purchased gap insurance for your 124 Spider and paid off the note early, return to the dealer with a copy of the payoff letter and ask for cancelation and refund.

In a few weeks, you'll get a check in the mail. I got $250.

I honestly didn't know this was possible, but looked into it when after I joined a class action lawsuit with Wells Fargo, and how they handled gap insurance for loans they serviced.

Don't leave money on the table.

 

[depotdan]

USAA, my carrier, no longer offers gap insurance. The option was canceled from my policy and monies paid refunded. If I want to continue coverage, I need to contract with another carrier.

Dan

 

[Aldo]

Best gap insurance is to not buy more than you can afford.

124 Spider is perfect for that.

 

[madfiat]

I saw how much my lender was charging for Gap and said no thanks. Then I found out Geico no longer offers Gap coverage. So I switched to Progressive, halfed my monthly insurance rate on three Fiats, and got gap through my insurance. So once it's paid off I will just drop that part of coverage.

 

[u35828]

Best gap insurance is to not buy more than you can afford.

124 Spider is perfect for that.

Factor in your tolerance to risk, as well. What you might find acceptable might be unpalatable to others.

 

[madfiat]

Best gap insurance is to not buy more than you can afford.

124 Spider is perfect for that.

I can afford a $10 pizza. But if there was a 10% chance the tomatoes would be rotten with no refunds, and I could ensure fresh tomatoes by paying for the $12 pizza, I'd take the $12 pizza.

There's no reason to leave thousands of dollars in risk just "hanging out" if for a fraction of that you can insure against it. Remember even if an accident is the other guy's fault you're left holding the bag for any difference in value.

Right now in this inflated market, there's not much gap if you bought before the bubble. But for anyone buying at these inflated prices, there's going to be a huge gap liability in the future.

 

[Aldo]

Well, thing is, people making $100,000 a year shouldn’t be buying $50,000 vehicles to be paid over 84 months. Doesn’t matter if the bank approves you. But that’s what more and more households are doing.

The longer that loan hangs out there, the more slowly you build equity on the vehicle, and the greater the chances that something unforeseen will happen.

That’s living one inch away from financial disaster.

 

[madfiat]

Well, thing is, people making $100,000 a year shouldn’t be buying $50,000 vehicles to be paid over 84 months. Doesn’t matter if the bank approves you. But that’s what more and more households are doing.

The longer that loan hangs out there, the more slowly you build equity on the vehicle, and the greater the chances that something unforeseen will happen.

That’s living one inch away from financial disaster.

So I make $65000 a year (I work for a government employer; it's public info if anyone cares to look), and I bought a $20,000 vehicle. Would still rather not get stuck with the bill if some jack decides to rear end me and total it.

Sadly that puts me above over 50% of the US. Most people live an inch away from financial disaster. You can't buy a new or even nearly new car other than maybe a Nissan Versa or Mitsubishi Mirage for under $20,000. Even those new go for more. Even at those "low" prices, gap can make or break someone's finances if they get into an accident, whether it's their fault or not. You're essentially telling over half of the American public to shove off and take the bus.

 

[Aldo]

You're essentially telling over half of the American public to shove off and take the bus.

Or buy a more affordable vehicle, or a used car, or take the subway, or ride a bike, or walk...

Seriously, though, automakers are pricing themselves out of the market. One day, in a not too distant future, millions of households will default on their outstanding loans, and there will be much gnashing of teeth.

 

[madfiat]

Or buy a more affordable vehicle, or a used car, or take the subway, or ride a bike, or walk...

Seriously, though, automakers are pricing themselves out of the market. One day, in a not too distant future, millions of households will default on their outstanding loans, and there will be much gnashing of teeth.

I do agree that automakers are way too focused on the highest-profit margin vehicles possible, and cancelling lower priced vehicles is pricing everyone out of the market. The sad thing is the lower priced vehicles they're cancelling aren't unprofitable, and they weren't "losing money" in ANY sense other than an accountant pointing out they could make MORE money by selling to higher profit margin vehicles. People don't need a lot of what's crammed into newer vehicles, and engineers are not allowed to give a second thought to serviceability or maintainability. One reason "GAP" coverage is becoming such a big deal these days is even a minor accident will completely total a vehicle due to astronomical repair costs even for minor damage.

Friend of mine's Nissan Versa got hit with a tire tread from a vehicle in front of her recently. Being hit in the hood with a piece of tire tread (not even 18 wheeler, just a regular car tire), caused $6000 in damage. She was terrified that it would get totalled because it is her only transportation. She can easily afford the $250/month payments on her 2018 Nissan. But the prospect of getting totaled and owing the bank at the same time she would need to somehow finance another vehicle was terrifying.

Your "buy a more affordable vehicle" argument does not wash when there are no more affordable vehicles to be bought. Not everyone has bought $50,000 or $100,000 vehicles on a McDonalds salary as people imagine. My friend makes $45,000 and a Nissan Versa was the cheapest new car she could buy - barring the Mitsubishi Mirage. No other factor was considered. She had been taken to the cleaners on two previous used cars that wore out before she could finish paying for them, and so needed something that could last at least as long as it took to pay for. Reasonable purchase, all things considered.

Take the subway? Ride a bike? Walk? Try that in Houston, Texas and get back to me. Your "" attitude to this reeks of elitism, in my opinion.

 

[Aldo]

Whatever...

Have a good life.

 

[madfiat]

Whatever...

Have a good life.

I will, thanks.

 

[2018 Fiat 124]

You should not need gap insurance if you made a substantial downpayment. You should never be upside down on the financing, either. The last vehicles I financed were 25% down at 0%. My how things have changed in the auto finance world. When I bought my first new car in 1974 (and my next two new cars) you had to put 1/3 down and finance it a maximum of 36 months. That was financing the price of the car only. Tax and license and any extras were paid in cash up front, too, in addition to the down payment. Yes, you had to perhaps settle for a lesser car, or fewer options, or maybe you waited and saved more money, but the buyer was rarely upside down.

 

[depotdan]

My frozen tears are for my totaled Fabiana. I did not have gap insurance and it cost me $7500 out of pocket to settle with my lien holder. Not happy, but it was whet it was. Purchased gap insurance for Aurora and then USAA canceled it. I’m not going to contract another carrier. I just hope another total isn’t in my future.😕

Dan

 

[LawsonGibbles]

GAP insurance… Lol!