loan/gap insurance

I refinanced my truck yesterday. It was originally done through TFS, but I wanted it to be local at a bank here so I can just drive there and pay whenever I want. I used my tax money and paid down the principal some. I now owe $19,900 on the truck. its a 2010 access cab 4x4 auto trd or. 42,800 miles. Am I upside down on the truck at this point, or in good shape? Also, I got gap insurance. Do you need this if your not upside down on the loan? My loan guy said get it, because the only time gap screws you is when you dont have it.

 

Check out this link, should take you to KBB

it is a 2wd value, no 4wd available to pick. Looks like you are in good shape.

http://www.kbb.com/toyota/tacoma-ac...46|false&path=&vehicleid=261971&mileage=42800

 

Never need Gap insurance

 

Your loan guy screwed YOU.

 

Here's what KBB said for my area on a AC 4x4 TRD-OR. It looks like your close to the break-even point. If you don't mind me asking, how much was the GAP insurance?

 

I never financied a vehilce but isn't gap insurance only for lease vehicles? To cover the "gap" between the calculated value and actual value (in case of an accident) when you return the vehicel

 

Gap is negotiable. Basically like everything in a car deal. I've had finance assholes try to sell it for $1000. Basically he saw that you could borrow a certain % of the car's value and there was still money left, so he sold you stuff and made more commission. Same thing they do with extended warranty insurance policies.

Gap can be useful. Especially if you buy a brand new rig (or one that depreciates quickly), with a long term loan, and/or had negative equity on a trade. If you see yourself being upside down in a couple years it's not a bad idea IF the price is reasonable.

When I've bought gap I've never paid more than 300. Usually they are refundable, at least pro-rated.

 

It's for both.

http://en.wikipedia.org/wiki/GAP_Insurance

 

Same deal on a financed vehicle. Price difference between the actual value and what is left on the loan.

 

I got GAP on my latest, added $5 / month. It covers the gap between value and loan amount if you total it. I rolled in some neg equity, so it was worth it to me. I will re-fi the loan when I am back above water on it.

 

So basically if I owe what the truck is worth, there is no need for gap??? If so I will go back and talk to them and ask for it to be removed.

 

You may also want to check with your auto insurance to see if they offer gap coverage. When I financed my truck, they offered me gap coverage for like $600, I checked with my auto insurance about it and it was like $30 a year with them. That's pretty cheap for knowing that if you total your truck, you won't be stuck paying a loan for a wrecked vehicle.

 

I will ask about this, thanks. The gap is something that can be cancelled/refunded right?

 

Gap insurance is mainly for a new vehicle. I'm the poster child for gap, got rear ended in a 10 day old truck. Totaled, injuries and gap saved my ass to buy another new truck. Picks up the depreciation as truck leaves lot.

 

Don't buy gap with your loan. You are adding interest to an overpriced product. Call your Insurance agent, add gap to your auto policy. When your truck is worth more than you owe, cancel coverage. Simple.

Get on the phone with your loan guy and cancel that policy stat.

 

yep, they get paid commissions on all the extra stuff they sell. Finance guys are worse than the sales guys.

 

You don't need gap. I don't know the terms of your loan so I'm going to pick the worst case. Even if you have a six year loan, your truck isn't ever going to deprecate fast enough for you to need gap. Conservative book on your truck is $23k. Brand new, it was about $27k - $28k with the TRD package included. You've got a truck that depreciates about $1k to $1.5k a year and you'd be paying over $3k a year in principal on a six year loan. (A year from now, you'll owe $16,700 on a $21,500 truck. In two years, you'll owe $13,400 on a $20k truck...) Gap insurance is just easy money for your loan guy and the insurance company.

Unless Osama bin Laden comes back from the dead and Toyota pays him to make the Tacoma the official pickup of ISIS and al Queda, I don't see Tacomas depreciating fast enough for you to need gap insurance.

 

I have a 6 year loan, but just to keep the minimum payments down for peace of mind. I pay way extra on my loans to get rid of them asap.

 

I just got off the phone with them. The gap is 595.00 for 6 years, or about 8.00 a month. The lady said even if what you owe is close or less than what the trucks worth, she has seen insurance payouts not completely cover totals before. she said she would recommend keeping it For the safety Since the price isnt too much. she was a different person than who I did my loan with, so there is nothing in it for her.

 

This.
If I total my truck, I want the full value of what it is worth.

I bet your insurance company can do it for cheaper.