Gap insurance, service contract/ extended warranty
Is it wise to buy on a brand new coach ... 1. Extended warranty if so from who 2. Gap insurance if so why Thank you all
Forum Discussion
I never purchase extended warranties, glass etching, fabric protection, wax-no wax finish protection, or any of 20 other things that RV and Car dealers try to sell. These are just profit builders they try to sell that do nothing more than add to THEIR bottom line.
GAP insurance is the only item that I see as a value but purchase from your bank or Credit Union. DO NOT purchase from dealer. I have found that the bank providing the financing is usually a few hundred or more less than dealer. The purpose of GAP insurance is to protect you and the financial intuition as a win /win for both.
Say you purchased something for 50,000 and with taxes, plates, and what ever add on items ended up financing 54,000.
You drive or use for a month and then its totaled. Insurance considers item "used" with the deprecation that happens to anything the second it comes off the lot. After much negating, you settle for 48,000 leaving you 6,000 short of payoff. GAP comes in and pays off the difference. That is why I purchase GAP from the lender as paperwork flows smoothly. 1st they got the insurance check as lein holder and they help with the GAP claim.
End result is paid off note and your not paying on something you no longer own or can use.
One more thing to consider is 2 years down the road when the item purchased has deprecated faster than the balance owed has dropped.
This could leave you double or more in the hole than the example above.
Randu
GAP insurance is the only item that I see as a value but purchase from your bank or Credit Union. DO NOT purchase from dealer. I have found that the bank providing the financing is usually a few hundred or more less than dealer. The purpose of GAP insurance is to protect you and the financial intuition as a win /win for both.
Say you purchased something for 50,000 and with taxes, plates, and what ever add on items ended up financing 54,000.
You drive or use for a month and then its totaled. Insurance considers item "used" with the deprecation that happens to anything the second it comes off the lot. After much negating, you settle for 48,000 leaving you 6,000 short of payoff. GAP comes in and pays off the difference. That is why I purchase GAP from the lender as paperwork flows smoothly. 1st they got the insurance check as lein holder and they help with the GAP claim.
End result is paid off note and your not paying on something you no longer own or can use.
One more thing to consider is 2 years down the road when the item purchased has deprecated faster than the balance owed has dropped.
This could leave you double or more in the hole than the example above.
Randu
