Women Car Buyers USED CAR ADVICE saves you money

I recently received this email from Allison, and she gave me permission to share it with you concerning Women Car Buyers and this USED CAR ADVICE found on the MyCarlady website and how it saved her (you) money…

Allison writes: “Thanks for your Used Car advice. Because of the information I found on your website I was able to make a great deal on a Used Car. The dealer tried to add some other tire package and exterior protection to the price of GAP, which I had read I should have, but I got them to take that other stuff off. Because I put money down and my loan is for 60 mos. how do you feel about GAP?”

Allison, I think GAP is a MUST HAVE, and you can purchase it from the dealership or your auto insurance company, either way you need to have it and here is why…

1. Cars depreciate faster than auto finance loans. If the car is stolen or totalled before you reach the break-even with loan to value, you would owe the bank for the difference between the insurance check-payoff and the remaining loan balance. That is called “UPSIDE DOWN”. GAP is an additional policy that covers this GAP in payoff.

2. If you purchase GAP from the dealership, in some states the cost is controlled by the state and can not excede certain amounts based on the length of the loan. You have to ask if your state is a GAP -regulated state, so you know if you can negotiate the price.

3. GAP is generally non-cancellable unless the car is stolen or totalled.

4. Buying GAP at the dealership and rolling it into your auto finance contract increases the cost because of the interest on the additional borrowed amount.

5. Buying GAP through your AUTOMOBILE INSURANCE company may be cheaper because you pay for it as a “rider” or “Additional Coverage” and you pay as you go, therefore there is no cancellation issue and the cost is without interest.

6. HOWEVER, you must ask the various providers if they base the GAP payoff on the market-value at the time of loss, or the Kelly Blue Book MSRP /RETAIL value or some % thereof. The key is to be sure your GAP policy covers the ENTIRE GAP.

Some policies only pay up to 100% of the market value, so if you had a negative balance from another car loaded into the loan on the new car, the GAP policy may not pay it all off and you would have to come out of pocket to retire the old loan BEFORE you can go get another car. This can be extremely ugly if you are involved in any type of financial challenge or bankruptcy.

7. GAP is typically $400-600.00 total, for up to 6 years/72 month auto loans and is payable in different options. Purchased as part of your AUTO INSURACE COVERAGE it can add $5, $10 up to $20.00 per month to your monthly bill, depending on the car and the number of remaining payments.

SO check out the GAP costs and coverage at the dealer and through your Auto Insurance coverage and if you don’t have GAP and think you need it, (only if you have an OPEN auto loan) let me know and I can direct you to some GAP OPTIONS.

Thanks for your email Allison.