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Tacoma depreciation and GAP insurance

Discussion in '2nd Gen. Tacomas (2005-2015)' started by RhodeIsland4x4, Jun 28, 2012.

  1. Jun 28, 2012 at 7:08 AM
    #1
    RhodeIsland4x4

    RhodeIsland4x4 [OP] Well-Known Member

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    Tacomas seems to hold their value really well. So what about GAP insurance? Do you think its necessary on a used Tacoma? My 09 TRD OR AC has a book value of 28k I paid 26K and say I total it next week. GAP insurance would cover what I still owe on my loan if the insurance company only pays me X amount of dollars claiming its depreciated in value.


    Anyone have experience with this? I'm financing through AAA and the loan agent suggested I purchase it b/c I'm financing the whole loan amount. It would only be an additional $5 a month payment on top of my reg payment.


    Enlighten me :)
     
  2. Jun 28, 2012 at 7:14 AM
    #2
    jsmarine

    jsmarine Well-Known Member

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    I would agree with your loan officer, since you are financing the whole amount, go ahead and get the Gap Insurance. In a year or so, after you pay down the loan a little you can re-evaluate whether or not to keep the gap insurance in your policy.

    Just my $.02
     
  3. Jun 28, 2012 at 7:18 AM
    #3
    mrw3685

    mrw3685 Well-Known Member

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    Gap insurance is a waste of money, there's a reason they try and negotiate it in at the VERY END of your car buying experience, along with extended warrantys and other useless stuff. Don't wreck your car, simple.
     
  4. Jun 28, 2012 at 7:19 AM
    #4
    hogeyphenogey

    hogeyphenogey Rotted frame = New Truck!

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    At a typical cost of $300-600 for the entire loan, GAP insurance is the #1 sold finance product in America and with good reason. It works. And it adds so little to your loan amount for what it potentially covers. Get it and keep it. Especially financing the entire amount. You never know how depreciation will change over time and this can stop you from worrying about haggling with your insurance company over valuation if your car is totaled. When I was a salesperson, there were many people that had to wait long periods of time to replace their car after it was totaled while they went back and forth with the insurance company over payout on their car, and then some of them would take the manufacturer rebates to help pay off the amount that wasn't covered on their old car.
     
  5. Jun 28, 2012 at 7:23 AM
    #5
    TJGARZA84

    TJGARZA84 Well-Known Member

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    As a loan officer - heres my 2 cents. If you buy the vehicle at cost or dont have that much equity position meaning down payment. Then yes get it. If you are in a godd equity position meaning putting a good chunk of money down then you wont need it.Insurance companies will only pay what the feel the vehicle is worth and gap with cover the difference up to a certain percentage. All companies are different some go 110% some go 130% - it varies. Find this out and since you dont have that much equity in your vehicle i would suggest buying it.
     
  6. Jun 28, 2012 at 7:31 AM
    #6
    RhodeIsland4x4

    RhodeIsland4x4 [OP] Well-Known Member

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    Good point TJG, I will ask them if it's 110% or what not. Seems like its only going o cost me a dollar a day for a year. Might be worth it.
     
  7. Jun 28, 2012 at 7:38 AM
    #7
    Brunes

    Brunes abides.

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    Because it's as easy as "don't wreck"...LMAO. One bad rear ender can total your car with no fault of your own.
    GAP is worth it of you can come up with 5 bucks a month but you can't take a couple grand hit if the truck is totalled out. I'd get it in your spot and re-eval in a year or so.
     
  8. Jun 28, 2012 at 7:53 AM
    #8
    floridaoccifer

    floridaoccifer Civil Servant

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    LOL -

    Epic Statement of the Year :smack:

    If you are financing the entire price of your truck then it is a good idea. DO NOT GET IT THROUGH THE DEALERSHIP THOUGH.

    Comparison from Dealer to Bank is amazing, my GAP was $175 total through my credit union.
     
  9. Jun 28, 2012 at 7:56 AM
    #9
    blackiebuck

    blackiebuck Member

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    As a carsalesperson, I say buy it. Give me your money. I make money from your money. Pure and simple. Thank you.
     
  10. Jun 28, 2012 at 7:56 AM
    #10
    hookedontronics

    hookedontronics Well-Known Member

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    you don't need gap insurance on a tacoma, they hold their value like gold, nothing to worry about
     
  11. Jun 28, 2012 at 8:05 AM
    #11
    drubacca117

    drubacca117 Well-Known Member

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    Oh gee, it's so simple! Because there is zero chance of the guys vehicle getting wrecked because of someone else on the road! :rolleyes::D
     
  12. Jun 28, 2012 at 8:21 AM
    #12
    blitzburgh99

    blitzburgh99 Well-Known Member

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    Can a guy buy gap insurance on an older vehicle, say a 1999 Toyota Tacoma? I have some mods (Shrockworks, OME suspension, camper shell, etc) that I know wouldn't be valued by my insurance. Would gap insurance cover those items?
     
  13. Jun 28, 2012 at 8:35 AM
    #13
    macgyver

    macgyver Well-Known Member

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    It's a gamble with a Tacoma because they hold their value really well.

    When I bought mine 3 years ago, I got a killer deal on it because the guy was trying to dump the payment asap. I bought it for $4k less than market value so I already had equity in it so GAP insurance wasn't necessary.

    It amazing that I could sell my truck today for about $1k less than I paid for it 3 years ago.
     
  14. Jun 28, 2012 at 8:44 AM
    #14
    RhodeIsland4x4

    RhodeIsland4x4 [OP] Well-Known Member

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    This was my reasoning. But I checked with AAA they will pay 115% of the cash value of the car. Not nesseserly book value. So in case I do wreck it or it gets stolen I will be paid enough to cover the loan plus have some money left over to use as a down payment on my next truck.
     
  15. Jun 28, 2012 at 9:21 AM
    #15
    bash42

    bash42 Well-Known Member

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    if you already bought the truck, it is probably too late to add this coverage. If you didnt buy the truck yet, get a new for like $2k more. just my .02
     
  16. Jun 28, 2012 at 9:37 AM
    #16
    TJGARZA84

    TJGARZA84 Well-Known Member

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    ive already responded in this thread but lets clarify some things for people that may not know.

    there is no such thing as gap insurance .... its referred to as gap coverage......
    yes insurance is a peace of mind and so is gap so people will call it insurance and so will dealers - but technically its not an insurance....

    Gap will cost usually between $150.00 to $300.00 depending on which finance company you decide to go with ----- dont be picky its really just a few dollars difference and if vehicel gets totalled you will be glad you had it ----

    tacomas generaly hold there value - we all know this we are all smart people and bought one :) - but you never know what the insurance company will value your vehicle at and you deff do not want to be left owing anything after a total loss - wether its your fault or not ...........
     
  17. Jul 1, 2012 at 5:08 AM
    #17
    bash42

    bash42 Well-Known Member

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    yes, but your insurance company cannot just provide an arbitrary figure, they have guidelines they have to follow. When i was selling cars i dealt with this a few times and most companies used the KBB value plus comparable vehicles for sale in your area to determine an evaluation. Once they gave that figure, they would then give you the cash for tax, tags etc. They have to allow you to replace your vehicle with a similar vehicle.
     
  18. Jul 1, 2012 at 5:32 AM
    #18
    brutalguyracing

    brutalguyracing BIG DADDY

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    F.U> GUYZ
    broken mods
    GOT GAP WITH MINE A FEW WEEKS AGO IT WAS $162 WELL WORTH IT IN MY MIND
     
  19. Jul 1, 2012 at 5:34 AM
    #19
    bash42

    bash42 Well-Known Member

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    bought a new one since Rausch? or was that the new rig?
     
  20. Jul 1, 2012 at 5:37 AM
    #20
    brutalguyracing

    brutalguyracing BIG DADDY

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    F.U> GUYZ
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    NOPE JUST WENT FROM A LEASE TO BUY
     

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