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Originally Posted by CincyJohn
Specifically, given that new cars are worth more than they cost most of the time and even cars that are 1 or 2 years old are worth close to what you bought them for, there simply is no need for gap insurance because it is very unlikely that a "gap" will ever exist.
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This is just patently not true. It's only been this way for approx the last 18 months because of supply chain issues.
Quote:
Originally Posted by CincyJohn
Furthermore, how many people here are financing almost the entirety of their cars??? Almost everybody has, at least, a trade-in worth at least 5 - 10k that they roll into their down payment. In other words, if you financed every dime of this car because you had to, you probably shouldn't be buying it in the first place.
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Again, not true. This is why you're seeing people use 84 month loans to purchase cars that carry higher rates.
"Currently, however, less than half of U.S. households — about 4 in 10 — are able to cover an unexpected $1,000 expense like a car repair or medical bill, a recent Bankrate survey found."
"Moreover, a significant number of auto loans nowadays come with negative equity from the outset. Almost half—46 percent—of the loans in the data we reviewed were underwater; that is, people owed more on the car—$3,700 on average—than what the vehicle was worth."
https://www.consumerreports.org/car-...s-a8076436935/
Quote:
Originally Posted by CincyJohn
BTW - I bet insurance companies are still selling it for about what they used to and stupid people that ROUTINELY over-insure for things they actually should be self-insuring for regularly pay it thinking they are being safe and SMART. Uh, no... Those insurance companies are laughing themselves all the way to the bank.
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Self-insuring? You realize most people don't have the money to do that, right? I carry 50/100/50 on our vehicle, and even though Oklahoma only requires a $75k bond.......I don't have that laying around to do so.
There also the part where some states require you to have as many 25 cars in your name to self-insure.
https://www.motor1.com/reviews/40696...elf-insurance/