Advertisement
Last Articles
- A young blonde female stock broker
- I was in a car dealership a while
- A woman answered the knock
- What will they call
Last News
One Other Thing - GAP Protection
Most car leases have automatic built-in gap coverage, while car purchase loans almost always do not. Gap coverage, or gap insurance, pays the difference between what you owe on your loan or lease, and what your vehicle is actually worth if your vehicle is stolen or destroyed in an accident.
Why is gap insurance important? Because it's very common, in these days of long-term loans and leases, rolled-over and refinanced loans, and little or no down payment, to be "upside down" - to owe more on your loan or lease than your car is actually worth.
This can mean you'll still owe hundreds or thousands of dollars to the finance company even after your insurance has paid for your car that has been totaled or stolen. This turns out to be a huge shocking surprise for most people caught in this unfortunate situation.
So, nearly all leases have built-in gap protection, but loans do not. You're better protected with a lease, unless you purchase the gap insurance separately at extra cost for the loan - if you can find somewhere to buy it.