Quote:
Originally Posted by CincyJohn
Nice selective quoting there by leaving out "in the current climate."
In any event, yes - if you had to scrape up every penny you had to put $1,000 down and get an 84 month loan at 5%, by all means, spend that extra on gap insurance.
Of course, you TOTALLY IGNORED the fact that if you bought this car today at MSRP and you total it a year from now (or tomorrow) gap insurance wouldn't pay you a FREAKIN DIME since there would be no "gap."
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I'm so sorry I left that part out and that seems to be all you can focus on.
Why would you put money down on a 5% loan when inflation is approaching 10%? And in a few years if rates come down back down, basically every decent credit union will refinance the car at the lower rate with no fees or additional costs.
There is no guarantee that the valuation will still be that high in 12-24 months from now, especially if we dip into a recession. GDP shrank last month and some big companies are already laying off workers. Then if it doesn't by the time you've paid the loan down to the point you have equity, you can cancel the GAP and get a pro-rated refund.
Of course, you TOTALLY IGNORED all the information I provided about self-insuring and how it's really not feasible for the vast majority of the population.