phillies

I'm picking up the new 08 IS250 tomorrow morning and everything is all ready but the dealer wants me to get the GAP insurance. I think it costs about $700or so. Until the dealer mentioned it I never even heard of such a thing. I called my insurance company today and they said they don't do GAP insurance. Now my question is, did anyone else get the GAP insurance? Is it worth the cost? The dealer said most people get it but I don't know if that's true or the dealer is just trying to make a sale....

Thanks,

Kurtz

iTrader: (1)

If you're putting nothing down or something it's probably not a bad idea.

I'd have expected that most folks buying a Lexus are putting a decent (at least 20-25%) amount down though, in which case it's a waste of money.

In either case though I'd be shocked if the dealer wasn't marking his offering up a ton and you should shop around with other insurance companies if you do find you need the coverage.

I'd be surprised if "most" people are buying it from him though!

phillies

I'm putting 14,000 down on the IS and I'm going to take the 48 month financing but I was planning on making double payments for the forseeable future so they car will be paid off alot sooner than 48 months.

Kurtz

iTrader: (1)

Yeah, you don't need GAP insurance then.

All GAP does it pay off what you owe on the car if it's more than your insurance company pays for it if you wreck it.

With 14k down and only 48 mo finance it's pretty unlikely you'll ever owe more than it's worth during the length of the finance though, so it'd be a complete waste of money... especially as well as Lexus vehicles tend to retain value.

griswold

I turned it down. I put down quite a bit and owe significantly less than the car is worth

tex2670

They are trying to screw you for something you clearly don't need.

phillies

Thanks.... I never got a new car before so this is all new to me.

supaIS350

Ask for the Old Navy insurance. It's cheaper.

Kurtz

iTrader: (1)

hehehe...old navy...nice

Honestly I'm surprised to even see a Lexus dealer offering this... this kinda coverage is useful for folks who are likely to be way upside down on their cars right away.... which is usually folks buying with nothing down, or taking a huge hit on a trade in and rolling that loan into the new one...

isam250

iTrader: (7)

you dont need gap insurance if u dont owe alot of money. like people said if ur not gunna put any down or a lil down, the get gap. it will save you alot in the in.

tex2670

Just the finance person trying to earn a few bucks. I'd complain to the manager. I bought a car a few years ago w/$10,000 down and the finance guy said, straight up, "With your DP, you don't need gap insurance." That's what your person should have said. Make him/her go lower on your interest rate, or you'll rat out to the GM.

phillies

Thanks for the advice....

njmurvin

And . . . it's built into most leases these days. But, it doesn't hurt to ask to be sure.

elshagon

check with your bank, mine said they'd sell gap for $299. If you tell your dealer this they'll probably sell it to you for the same price. Even at that price they're making money. $700 is just extra money in their pocket.

chat0882

Wow, I got gap for $179