GAP Insurance
JK Super Freak
Joined: Mar 2007
Posts: 1,769
Likes: 0
From: Coastal Bend
Well, it should only run you an extra $5 a month or so, but it is definitely worth it if you have a loan over 5 years. All it does is protect you for when you are upside down on the loan.
Of course, with the depreciation on these units an unknown (but generally low for Jeeps), you might not need it.
I have it, but it came with the lease.
Of course, with the depreciation on these units an unknown (but generally low for Jeeps), you might not need it.
I have it, but it came with the lease.
JK Freak
Joined: Mar 2007
Posts: 580
Likes: 0
From: ABQ, NM
I wouldn't say it has much to do with the length of your loan. Just do a little research and you can tell yourself if you'll need it or not. For instance:
2 years from now, a 2 door Rubicon will fetch about 22-23 thousand or so. If your loan shows you owing 25K still, you will most likely be paying that 3K difference out of your own pocket, unless you have the GAP coverage. It's well worth it if you finance close to 100 percent of the vehicle with little or no money down (like I have done a lot of times).
Don't quote my numbers that I used, it is there for an example, that is all.
That being said, I did opt for the GAP coverage and it only comes out to 4 or 5 bucks a month.
2 years from now, a 2 door Rubicon will fetch about 22-23 thousand or so. If your loan shows you owing 25K still, you will most likely be paying that 3K difference out of your own pocket, unless you have the GAP coverage. It's well worth it if you finance close to 100 percent of the vehicle with little or no money down (like I have done a lot of times).
Don't quote my numbers that I used, it is there for an example, that is all.
That being said, I did opt for the GAP coverage and it only comes out to 4 or 5 bucks a month.
JK Enthusiast
Joined: Jan 2007
Posts: 281
Likes: 0
From: Colorado (about 7800 Ft)
It depends..
If you got shafted on the interest rate, then you may need it. BUT if you put a small down, the demand is great. I showed a friend that a Jeep Wrangler retains better that a typical rip off Toyota. Jeeps keep good on their value. The only cars that really appreciate besides collectors are Harley's and the Landrover Defender that was sold 15 years ago. Not another Japanese car that's over rated by playing the supply and demand sceam. If you plan to add things to your Jeep, it won't be included the Gap. Good Luck....
JK Jedi
Joined: Jan 2007
Posts: 5,350
Likes: 2
From: Lacey, WA
It definitely depends on how much you plan on financing and your downpayment. The Wranglers have about a 30% depreciation in 24 months. Unless you put a big chunk of money down or have a large amount of positive equity in your trade-in, I would go for it. It saved me once when my car was totalled in an accident and I drove off in a new car for the $500 deductible instead of the $6,000 hit without the gap insurance. (Ford product, enough said)
Last edited by armycop; Apr 24, 2007 at 06:49 PM.
JK Jedi
Joined: Feb 2007
Posts: 7,568
Likes: 3
From: Denver, CO
For sure...I just signed the papers a few hours ago and I declined GAP but with my 5000 down, it was only 22,5 financed...it would take a drastic drop in value for me to get upside down. Though still possible, its highly unlikely. I did a 60 mo.
Trending Topics
JK Jedi
Joined: Jan 2007
Posts: 5,350
Likes: 2
From: Lacey, WA
Interesting...Wrangler vs Hummer H3
Fun fact:
WRANGLER 24 months: Holds around 70% of it's value
WRANGLER 36 months: Holds at around 60+% (best in "small SUV" class)
HUMMER H3 24 months: Only holds 55% of it's value!
HUMMER H3 36 months: LOSES a whopping 52% of it's value to a horrible 48%
WRANGLER 24 months: Holds around 70% of it's value
WRANGLER 36 months: Holds at around 60+% (best in "small SUV" class)
HUMMER H3 24 months: Only holds 55% of it's value!
HUMMER H3 36 months: LOSES a whopping 52% of it's value to a horrible 48%
