Canceling GAP insurance

[Hall]

Originally Posted by Wolf359
...and drive carefully so that it isn't totaled.

You realize that someone else can hit you no matter how carefully you drive, your car can be totalled, and the insurance doesn't give a rat's behind about how much you owe in comparison to what the car is worth. Even if they give you a 100% fair value, doesn't mean it's what is owed.

 

[HowAboutThis]

Originally Posted by hallstevenson
Originally Posted by Wolf359
...and drive carefully so that it isn't totaled.

You realize that someone else can hit you no matter how carefully you drive, your car can be totalled, and the insurance doesn't give a rat's behind about how much you owe in comparison to what the car is worth. Even if they give you a 100% fair value, doesn't mean it's what is owed.


I was thinking the same thing. Although, barring any strange circumstances, pay your car off, keep putting the loan payment on auto deduct into a special savings account, 5 years later you can save $20-400/mth on interest (depending on loan amount, interest rates, etc.) on your next car purchase. Then repeat the process with that car!

 

[buddylpal]

Originally Posted by Ben Boyle
I had gap insurance on my Verano that I totaled last year. It was a small additional monthly fee. When it got totaled I received a pro-rated check. This was all through GM Financial and it happened automatically, I didn't have to do anything to get it.


Yep this is how it works when a vehicle is totaled and you have it financed with a lender. They send a request to the gap administrator for a refund due to total loss and it will be applied to the loan. Usually the total loss check amount from the insurance company isn't enough to cover the remaining loan amount and you'll never see a refund for back end product refunds. You're situation is by no means the norm.

 

[buddylpal]

I feel bad for anyone who has to deal with this situation. You will quickly find out how most dealers simply do not care about their customers. They only pretend to care when you buying something.

 

[Wolf359]

Originally Posted by HowAboutThis
Originally Posted by hallstevenson
Originally Posted by Wolf359
...and drive carefully so that it isn't totaled.

You realize that someone else can hit you no matter how carefully you drive, your car can be totalled, and the insurance doesn't give a rat's behind about how much you owe in comparison to what the car is worth. Even if they give you a 100% fair value, doesn't mean it's what is owed.


I was thinking the same thing. Although, barring any strange circumstances, pay your car off, keep putting the loan payment on auto deduct into a special savings account, 5 years later you can save $20-400/mth on interest (depending on loan amount, interest rates, etc.) on your next car purchase. Then repeat the process with that car!


While completely true, my previous comment was that the lease payment was just artificially low. You basically pay less at the beginning of the lease where the depreciation is the highest and end up paying more at the end of the lease when it slows down a bit. So if the car gets totaled near the beginning of the lease, you were basically getting more car than you were paying for, hence the gap.

Insurance never really makes you whole no matter how much they pay out because you end up spending time dealing with it and buying another car which you never get compensated for.

 

[ryster]

Originally Posted by buddylpal
I feel bad for anyone who has to deal with this situation. You will quickly find out how most dealers simply do not care about their customers. They only pretend to care when you buying something.


This is totally true, there is no disputing that. I have bought a lot of cars, and have never felt like any of the dealers ever gave a thought about me after I drove away. As soon as they fulfill their obligations they totally forget about you. For example, back in the late 90's I purchased the very first color of a brand new model that the dealer received. They made a big deal out of it. 3,000 miles later (about 3 months after purchase) I was in for my first oil change and the salesperson who sold me my car approached me and said "Hi! Welcome to our dealership. How can I help you?" I replied "Um, I am getting my first oil change on my car." The rep said "Oh! Who sold you your car, I am sure they would like to say hi!" I replied "Actually, you sold the car to me..." It just got really awkward from there.

I have personally never been a repeat customer at any dealerships with regards to purchasing vehicles. Service departments, yes, but sales never. As much as I love cars, I detest the actual purchase process. It is simply NOT a good experience.

 

[buddylpal]

Originally Posted by ryster
Originally Posted by buddylpal
I feel bad for anyone who has to deal with this situation. You will quickly find out how most dealers simply do not care about their customers. They only pretend to care when you buying something.


This is totally true, there is no disputing that. I have bought a lot of cars, and have never felt like any of the dealers ever gave a thought about me after I drove away. As soon as they fulfill their obligations they totally forget about you. For example, back in the late 90's I purchased the very first color of a brand new model that the dealer received. They made a big deal out of it. 3,000 miles later (about 3 months after purchase) I was in for my first oil change and the salesperson who sold me my car approached me and said "Hi! Welcome to our dealership. How can I help you?" I replied "Um, I am getting my first oil change on my car." The rep said "Oh! Who sold you your car, I am sure they would like to say hi!" I replied "Actually, you sold the car to me..." It just got really awkward from there.

I have personally never been a repeat customer at any dealerships with regards to purchasing vehicles. Service departments, yes, but sales never. As much as I love cars, I detest the actual purchase process. It is simply NOT a good experience.


Agreed.