Leasing a Tacoma.
Put down 4k, lease is 100 a month/24 months. I decided on $25 a month for Wear/Use.
Any thoughts on GAP coverage which is the difference between loan amount and insurance settlement.
They explained it:
Gap insurance pays for the difference between the value of a car at the time it's totaled or stolen and the balance of its loan or lease. Though it seems to refer to that difference, "gap" actually stands for "guaranteed asset protection."
A new vehicle loses some value the minute you drive it off the lot — and 20% to 30% total in the first year. After that, the car's value will continue to decline. As of 2017, the average rate of depreciation, or lost value, will be 17.8% a year during years two to six, according to Black Book, which tracks used-car pricing.
But standard auto insurance pays only what a car is worth at the time of a theft or accident. When you owe more on your car loan or lease than that, gap insurance comes to the rescue..
So I put down 4k. Car is valued at 28. Residual Value is 24398.
Do I take the Gap coverage or not?
Advice / Recommendations
Put down 4k, lease is 100 a month/24 months. I decided on $25 a month for Wear/Use.
Any thoughts on GAP coverage which is the difference between loan amount and insurance settlement.
They explained it:
Gap insurance pays for the difference between the value of a car at the time it's totaled or stolen and the balance of its loan or lease. Though it seems to refer to that difference, "gap" actually stands for "guaranteed asset protection."
A new vehicle loses some value the minute you drive it off the lot — and 20% to 30% total in the first year. After that, the car's value will continue to decline. As of 2017, the average rate of depreciation, or lost value, will be 17.8% a year during years two to six, according to Black Book, which tracks used-car pricing.
But standard auto insurance pays only what a car is worth at the time of a theft or accident. When you owe more on your car loan or lease than that, gap insurance comes to the rescue..
So I put down 4k. Car is valued at 28. Residual Value is 24398.
Do I take the Gap coverage or not?
Advice / Recommendations
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