Awesome video and very informative, thanks! I (being a dumb first time buyer) paid a ridiculous 850 for gap and another ridiculous amount for extended warranty. Thanks to people like you with these types of videos, I'm now seeing this. 👍

@commoncentsmike7733

4 жыл бұрын

Hey, we learn from out mistakes right? I bet its not something you have to deal with again!

You explain that perfectly thank you for also dumbing it down a little 😂😂🙏🏻

Nicely done brother! 👍🏼

Great video! Thank you for sharing your knowledge. I appreciate it.

@commoncentsmike7733

6 жыл бұрын

Happy it helped!

Thank you very much, I learnt something just in time .

All products sold in a dealer F&I office, like an extended service contract or GAP, is a bet by the consumer. The consumer is betting he or she will recover more from the product than they paid for the product. As with all bets, the rules are stacked in favor of the house, the dealer. The key is in the details, how the dealer and the provider of the product price the product. For example, an extended service contract. First, the provider of the service contract will determine the expected payout. This might be $800. On average, the provider will pay $800 for each contract. Second, the provider will sell the contract to the dealer at a profit. For example, the contract expected to pay out $800 will be sold to the dealer for $1,200. Third, the dealer will sell to the buyer at a profit. Actually two profits one for the dealer and one for the F&I manager. For example, the dealer will sell the contract to the buyer for $2,400.. So, in the end the buyer will pay $2,400 for a product the experts know will likely payout only $800. A bad bet.

I’m a military and I’m glad that the federal government put a stop to GAP insurance from dealership. They’re not allow to sell GAP insurance to us and they can get in a big trouble if they do. I bought mine through my insurance company which is like $275.

@commoncentsmike7733

5 жыл бұрын

Wait really? I've not heard this before. I'll check this out

2019 dodge charger scatpack they gave me gap and 7 year 100000 mile bumper to bumper warranty is that a good deal?

I have a quick question.. I had my loaned car I was paying full coverage insurance.. I got involved of wet reckless (DuI) accident my insurance paid $4000 from $8000 and gap insurance will not pay it off because it was for criminal accident.. My question 1) Why the insurance will not pay the whole car if I was in a full coverage 2) Is there any way around to make the Gap insurance pay for it? Any help I will really appreciated it Thank you so much

Great video!

What happens when value of car is more than balance owed to bank, and I have gap coverage? My insurance company already paid bank off, so how and by whom do I get paid, for my loss?

I just found out the total cost for my gap insurance through the dealership was 1000. He really didn’t explain this other than tell me what my monthly payment was but they added it to my loan so now I have an extra grand racked up on my loan. I’m going to try to cancel it.

Thank you for useful info!!!

Is the initial GAP Insurance refundable when you trade in your car and buy a new car from the same dealership?

Will GAP insurance kick in if I do the buy back and pay off my loan so I have a car with no loan on it?

Question: when you refinance, is there a period of time you should wait to refinance? The dealership told us 12 months.... thank you!

Thank you. Is there a way to find out if the finance company is offering you what the true value is?

On a brand new vehicle, gap is good. But you need it less as the vehicle depreciates. Find out the tipping point of when your vehicle is worth less than your remaining balance. At this point, gap is useless. Just like insurance, why pay more in insurance than what your vehicle is worth. ( Liability vs Full Coverage )

You can get the gap insurance through your car insurance. I am with progressive it it only costs me eight dollars per month.

@arlinethomas3074

5 жыл бұрын

Bought a Mirage in the middle of November... And not even three weeks later was hit. Just found out today that it was totalled. So I called my dealership to Inquire about this Gap insurance and what it consists of. Found out that my insurance company was only paying out $14k on a 20k loan and Gap would cover the rest. So I'm glad I had the wherewithal to purchase it when offered by the dealership. But as I read the comments, I realize that I may have gotten a better deal through my Insurance company. Car note was $400... With Gap insurance it came out to $463/mo. So yeah.. new at all of this...

@NpaujYaaj

5 жыл бұрын

My gap insurance at Honda dealership is $990.

@polomclauren6838

5 жыл бұрын

They only pay 25% progressive

@NewarkBrickCity1970

4 жыл бұрын

I learned Progressive only offers gap for cars 5 years old or less, and Geico will only offer it for brand new purchases.

@rogersmith2036

4 жыл бұрын

@@NewarkBrickCity1970 I bought a new car geico told me to get it from the dealership. Shake my head🤭

I'm leasing a Honda and it comes with free GAP coverage. Awesome video! I have a friend who got raped on his car loan. I'll definitely let him know he needs to get GAP, in case he gets into an accident and would still owe $10k.

Perfectly explain thank you

Also get GAP if you buy a car that is known to be depreciated quickly, bmw, Mercedes, Kia, Hyundai,Ford just to mention a few.

Awesome video. But don’t understand did u say $275 a month for gap coverage? So if my car payment is $800 a month, I’ll be paying $275 on top each month?

MY CAR WAS PARK 2018 and hit my backlite amd they backbody part of my honda accord it was a hitrun situation and my insurance progressive trash didn’t cover me after three years of loyalty with them and i also i have GAP WITH DEALERSHIP DOES IT COVER MY CAR ?

Hey, I have one question. I have gap insurance but still I’m lossing 7000$. So, where I have to go now to talk about gap insurance like form my dealer or insurance company?

Hey there I'm planning to buy a car from the dealership & taking the finance from them. But buying the GAP insurance price is quite expensive buying from dealership. So is it possible to buy the GAP insurance from somewhere else or I can only take the GAP insurance from the dealership?

I just got a car yesterday and I got home I realized I paid for gap insurance and paid for vsc that I didn’t want, they said I have 5 days to return car and trade for another of the same price or more? Can one cancel gap and VSC our ones you sign you are are done? I had a Brian fart with my meds man it sucks get old.. anyway to cancel this services with in 5 days of signing?

Hey, Anyone... I Have A 2011 Chevy Malibu With 190,000 Miles On It. So, I Have Like $5,000 Worth If Negative Equity On My Car. I Have Gap Insurance, But i Dont Have Car Insurance And I Am Wanting To Trade The Car In. My Bank Says I Can’t Until I Pay Off Tge Negative Equity & Get Insurance & Keep It For A a Few Months. Is There A Way Around This ?? I Need A More Reliable Car.

Thank you 👏👏👏

I have it one one car but my the other. I bought my beater when I had bad credit and had an expensive loan. The car is only worth $700 now (217,000 miles later), but I still owe $6,000 on it. The gap coverage will save my ass if I get hit. My other car I bought new with good credit. It holds value well and doesn’t get driven much. I’m not underwater on it. So no gap.

I recently bought a 2020 Nissan kicks with 6350 miles on it, and the dealer financial guy really insisted I get it. I decide to get it once he said it would only be 6.00 monthly but when I sign the papers I notice the he increase my finance term for 6 more months to include the gap insurance in it which cost 900.00 that's when I said ok canceled it i don't want it, I not going to pay interest on this BS. after that things got really tense but I didn't let him screwed me over.

Well I was happy that I had bought gap insurance,cause it helped me out when I got into my accident.so it's good to have it cause never know.

The whole system of insurance is convoluted against you. You get insurance and then have to get more insurance. If I had banked all the money I've paid into insurance companies for car health and life insurance over the course of my life I could easily retire and cover any eventualities life brings. Glad I took out the gap on my recent purchase for my overpriced used vehicle. Thanks for the information.

I purchase gap insurance last year when I made a new vehicle purchase it was not a brand new vehicle it was a used 2011 Kia Sorento I thought that was the best way to go when she gets a gas insurance for months later my car is totaled the gap insurance is not cover the whole Gap they're wanting me to pay an additional $2,000 good luck because bought the gap insurance with me understanding from the bank that it would cover the Gap and they did give me $1,000 down towards another car but I'm pretty livid have you heard of any such thing happening before and if so how should I handle this your help is so much appreciated

I didn't took gap wen I got my new car from the dealer was that a bad idea? I have it 2 years nw should I get i get it now ?

Dude, thank you. The world is a confusing place.

@amandajane8203

5 жыл бұрын

William Brockmeyer thank god... I thought I was the only one. 😂

Does gap insurance only apply if your involved in an accident?

This is why insurance companies rather write a car off as a total loss. They make money buy selling the wrecked car and never pay the full cars worth amount

Well my dealership asked me to get the gap insurance and I'm doing my payments put of pocket... and the dealership wants to charge us $300+

So if i pay 7 down with a 2500 trade on a 32k car i should get gap?

Can you explain it better for me please,I'm visual.I can't picture what you're saying about GAP Insurance?

I decided against gap coverage because I couldn't afford to pay up front but I didn't want to finance, or pay interest, on an aspect of a warranty. Plus, I paid about $3000 under msrp. Did I make a good decision?

@AMIX89

2 жыл бұрын

If this is a car for yourself. Yes . It’s for company of work long distance. Not . Regards!!

Do you pay it monthly or just once?

Do u still get a paycheck if your car a loss & you have gap

I was in a accident two months ago. I did have gap from credit union,and Geico insurance. Geico paid 70% and gap paid 30%. The car was finance through the credit,which sold me the gap.

@commoncentsmike7733

4 жыл бұрын

So sorry to hear about your accident and I hope you're OK! Glad that the GAP was able to take care of things.

@keiichimaebara3754

4 жыл бұрын

Really they say they're supposed to pay all of it so that's why don't have it actually they paid only half of mine if it said 70% I would probably would have still never got them again because their promise to pay off everything and they did so I know for a fact I don't ever get it just because I fell lied to

@KEVIN-sx1ed

4 жыл бұрын

keiichi maebara It depends who sells it. I think it depends how much is left. I was already little over half,so it help pay off the loan. For me it was worth it. Even if it don't pay off the whole loan,you will be left with less to finish the loan.

3:37 I don't think you should walk away from the deal bc of their gap insurance, just get it through your insurance? Why cancel the whole transaction?

I but a new car 15 months now n I want to refinance my car this month n the costumer service from Toyota credit told me not to cancel my gap . What should I do?

@commoncentsmike7733

6 жыл бұрын

Truthfully, in my experience, I'm not sure that you can cancel GAP after a certain time period. Toyota may be different, but that has been my experience. Now if they do allow you to, then yeah, cancel it and get a refund because you can buy it through the place you're going to refi. Also, if you're looking for a place to refi, check these people out. They work with credit unions and give my subscribers $25. kzread.info/dash/bejne/gqaZx7Nymd2nerw.html

Mini charged me $850 for Gap!!! Awesome video.

@commoncentsmike7733

6 жыл бұрын

If you just purchased the car, you might be able to get it taken off.

@raymondadams6433

6 жыл бұрын

COMMON CENTS MIKE I wish I saw this video earlier, I only had 30 days and my time ran out. Thanks for the informative video!

Thanks for the Great video man! I have been learning a lot from you. What if I purchased the gap insurance separately from the loan and plan on refinancing my loan. Would that effect me on having to pay for GAP insurance again?

@commoncentsmike7733

6 жыл бұрын

Like it's from an entirely separate company? If so, then maybe that would work, but you would want to contact them to make sure.

What is you thought abt extended warranty (omega)

My dealer wanted to charge me 2,000 for GAP insurance lol I said no, don’t need that right now.

thank you

I financed (5 years) a car through Toyota in 2015, then 1.5 years later I had an accident, the car was fixed and runs well but the accident record stays. When I tried to trade in the car for another car, that new dealership said my car was worth $7000 less than what I paid for due to the accident on my record. Would my gap insurance cover the difference or do I have to suck up the difference?? Is the gap insurance only for cars that are completely totaled? I am completely confused!

@commoncentsmike7733

6 жыл бұрын

Unfortunately GAP doesn't cover dealer trade in gaps. It covers the vehicle in the event of total loss on the car.

@lunabb23

6 жыл бұрын

Contact the insurance company that paid for your vehicle damages and tell them that you need them to run a diminished value for your vehicle because you lost money, they will issue a check for you after they review your car's value and how much they paid for your property damages👍

Great info

@commoncentsmike7733

7 жыл бұрын

Thanks Ashley!

Yes, we paid 600$ for our gap insurance.

oh, my finance said they gonna give me back about 1W on the third year, and i pay 27$ a month! It means 1,296$ till 48 month leasing. Is it true?

@keiichimaebara3754

4 жыл бұрын

Gap insurance lies that's all I'm gonna say

You are incorrect when you say you'll never be asked about GAP on a cash purchase. Depending on the GAP policy, some of them are Return to invoice cover. So if you buy a car for 30k and in 2 years it's involved in an accident, and insurance give you 10k, GAP will pay out another 20k, so you can go out and buy another car with 30k

Hello there. Quick question I hope you can answer before I buy GAP coverage. I put down about 44% on my car which would be a good reason NOT to get the coverage however I got a loan for 72 months which is a good reason to get the insurance. Considering I put down double the 20% would that cancel out the 72 month issue?? Please help

@commoncentsmike7733

6 жыл бұрын

Gina hey Gina, I can’t imagine you need GAP if you put down almost half. The only way you would need it is if you got a really bad deal on the car AND purchased extended warranty or something. Also, use this to figure out your car value. If your loan is way more than the “average trade in value” then maybe keep the gap. www.nadaguideswindowlink.com/8396

@MixieTrix

6 жыл бұрын

COMMON CENTS MIKE Thank you so much for your response. I don't think I got a bad deal because when I look around for my same vehicle they are all at least 2k more than what I paid. I did however get extended warranties. I didn't want to but so son's aunt works at the dealership and said I'll want to blow my car up if something happens and I need to pay out if pocket. I got a car that everyone says is so high to maintain so she worried me into 2 extended warranties. The rough trade in and average trade it as it stands now are just barely over what my loan amount is for minus the finance charges. Inn a couple years will I be upset down in my loan do you think?

@commoncentsmike7733

6 жыл бұрын

Personally I've never heard of getting 2 extended warranties and it seems a little overkill to me. Consider getting rid of one or both. Remember that if you don't pay cash for the coverage, then it's being built into the loan which affects the monthly payment and total interest you pay. The good news is that even with TWO warranty packages you still have equity in the vehicle. Also, what rate are you paying? Feel free to email me at commoncentsmike@gmail.com BTW

Great video. What about extended warranties?

@commoncentsmike7733

7 жыл бұрын

I'm going to make that one as well!

I just bought a car (Ford Bronco Sports 2021) and I got GAP insurance. Car is for 41K. Put 7K downpayment. Total came to 37K 🤔🤔🤔

Can i cancel extended warranty. I just got a car a month ago.

@commoncentsmike7733

5 жыл бұрын

Natural Sweet Tooth depends on their cancellation period. I would reach out and ask how long you have to back out.

Can anyone comment on if your buying a used car for $12,000-$14000 from a private seller and they have GAP insurance they can transfer? Is it worth it? How does it work with private sellers who have GAP? Help!

@commoncentsmike7733

5 жыл бұрын

Hey Amanda, every lender will have different rules, but I'm 99.99% sure that it will NOT transfer to you unfortunately.

What if my car gets totalled and I have $30,000 left on the loan but the car is worth $15,000 only, would GAP cover the other $15,000?

@hiphop2kful

6 жыл бұрын

Jeanx Play no, i doubt it

@j.g.bloodworth9837

6 жыл бұрын

Yes! If your vechicle reported as a total loss they would pay the difference. That's what's your paying for when you purchase gap insurance with your loan.

What I want to know is how to deal with gap insurance lowballing you?

@keiichimaebara3754

4 жыл бұрын

That's why don't use them anymore that's why this guy's misinformed because or at least hes trying to sell it because they basically did not pale all of it like they claim They probably paid about half of mine OK but what about the other half that they should have paid then I saw someone on here saying 70% I said that's fine and dandy you're happy but 70% is $30 that they should have paid that they didn't No listen to the news whenever they tried to say that it was great because I did once at least where I live after I already have it knew better was like yeah right There's literally no disclaimers and no indication that They may Be only able to pay a certain portion know they're just them promising that they're gonna pay all of it and don't so I don't trust them because it's what legit illegal false advertisement It is a complete lie and a scam and it's complete garbage so I actually recommend people don't get it

Credit union is the best place to buy the gap insurance.

@commoncentsmike7733

5 жыл бұрын

I'd agree

@keiichimaebara3754

4 жыл бұрын

@@commoncentsmike7733 I will never get gap insurance again I don't care how people spin they don't pay it like they say they do My car got totaled and I wasn't even in the car was totally not my fault it was a drunk driver I was parked on the curb of my house And I was in my Room minding my business until I heard a Bang His slam so hard into my car that it went into the back my nieces car he T boned Both cars by spinning out Because he lost control of his car after hitting my car from behind he was going 70 down a residential neighborhood my car was completely totaled I had to get a new car do you know one gap insurance did they paid only a small portion of what I need it saw is still stuck So you're not convincing me to let the con artists take advantage of me again I go to the dealership now every time and I say nope I will not get gap insurance they scam you have a lie and everything they say on the news about it because they had news reports that is so great is a lie and they look happy surprised they say I never had that well that's because you're trying to sell it to me that's from think in my head

Would it work if I sell my car to car max and they give me 10k for it but I owe 20k??

@commoncentsmike7733

5 жыл бұрын

No, the GAP is really only for when your vehicle is totaled

If you need GAP insurance you should be asking yourself if you are buying too much car.

When purchasing my brand new car couple days ago, the guy in the finance office spoke against gap insurance. He said it's a waste of time don't even mess with it, however my credit union rep said otherwise.

@commoncentsmike7733

4 жыл бұрын

It really depends on the deal you're getting. If you put a good amount down and you owe LESS than what the car is actually worth, then GAP may not be needed. If you owe a good amount MORE than what the car is worth, then it could help. Keep in mind a lot of reps get paid on GAP & Extended Warranties.

I just got a 2018 Toyota Corolla yesterday. They gave me GAP insurance in my paperwork. It was $900!!! Can I get a refund from this and get GAP insurance somewhere else for cheaper. I have a full warranty on the vehicle plus full insurance through Alfa insurance.

@commoncentsmike7733

6 жыл бұрын

There should be a grace period where you can get the GAP removed

@basicbrooklyn7565

6 жыл бұрын

I have 30 days to get a full refund just didn’t know if there was a place I could have it but for cheaper.

If you put alot of miles on and will keep the car for most of the loan its alway a good idea to get gap. Well if you get the car half price dont but as u use the car it goes down in value and every year it will to.. also if you get a new car you take it off the lot and lose value because now it not new..

My GAP was $2000 from Toyota dealership. I wished I watched this 3 years ago.

@hassaanawan9606

2 жыл бұрын

Same mine was 2300. I said cut that shit out. You almost added 30 bucks to my payments without telling me

@Krayzenify

Жыл бұрын

Oh God! Mine was $900+

Thank you

I have state farm and they never mentioned gap insurance to me.

@nobuhled

3 жыл бұрын

I called them today, and they don’t offer it

Do gap go to principal or interest?

@commoncentsmike7733

6 жыл бұрын

GAP is added to your principal amount when it's added to the loan. However because of that, you will pay interest on that increased loan amount.

How can i know whether my car has gap insurance or not

@commoncentsmike7733

5 жыл бұрын

It should be on your original loan paperwork. If you don't have that, you can probably contact your lender for a copy. Also, you can just ask them as well.

my car before taxes is $56,000 and I'm putting $28,000 down. Brand new LUXURY vehicle ( I believe its going to depreciate fast).. do I need it?

@travis1240

3 жыл бұрын

The GAP insurance? No. The car? Definitely no.

@k9feces

2 жыл бұрын

@@travis1240 😂

How do you find out what your vehicle is worth (after you drive it off the lot).....I'm looking at a 2016 civic ex-t with 15k miles

@commoncentsmike7733

5 жыл бұрын

I use this and go with the "average trade in value"www.nadaguideswindowlink.com/8396

👍👍👍

Wish I knew this before :/ What if I "refinance" but with the same bank, do I still have to pay for gap a second time? Or does it carry over ?

@commoncentsmike7733

7 жыл бұрын

Unfortunately a true "refinance" would require you to have to pay for GAP again. Two things though. First you may be able to just do a "rate drop" if your credit score has improved since you originally got the loan. Second, while it may suck to pay for GAP again (if you even wanted to) don't let that deter you from refinancing. Depending on how much you can drop your rate, you may save thousands of dollars in interest. Its worth paying another $400 to save $3000. Just on doing the "rate drop" option with your current lender first though.

@keyzsotelo5228

7 жыл бұрын

thanks always amazing info!

Whats the point of having insurance if they dont give us the full amount for car

@rogersmith2036

4 жыл бұрын

Insurance pays for both. Most people pay the bare minimum. So whenever they are in an accident they dont have enough in their budget

👍🏼

Dealerships often cover 150%, while credit unions are only at 125%. Do more research.

It's not a good video. What I make a down payment of 20%, should I purchase GAP insurance?

I purchased Gap coverage but then cancelled it , after finding out that it cost 754

Mines was an additional $30 a month for a 2019 Honda Accord Sport

@arkimwilliamson4429

Жыл бұрын

Was that good

@tylaw6173

Жыл бұрын

@@arkimwilliamson4429 Mine was about the same. I was recently in an accident it was my fault and the car is a total loss but from my understanding I will not have to be paying my finance company anymore of it unless a payment comes up before the case I'd settled. Praying it goes smoothly

Omg you have a dauschund! 🥰

What if your car is vandalized

@commoncentsmike7733

5 жыл бұрын

More of your basic car insurance situation, not GAP

@stashouse617

5 жыл бұрын

COMMON CENTS MIKE I mean if it’s vandalized and it’s a total loss

I just bought a car and gap was $ 895

@trelltheguy

5 жыл бұрын

Mines $899 with a dealership 03 Honda accord

@pantherz2010

4 жыл бұрын

Should i get it mine is only 500 and you can exceed only up to $50000 of damages.

So apparently showing compassion for the other party during an accident is ill-advised because it can be used against you in court. What a world we live in today.

@keiichimaebara3754

4 жыл бұрын

I'm pretty sure it cannot be used against you in court specially if the person cause the accident and everyone called the police You can show compassion but you just gotta be smart about it like checking to see if they're OK But never given when they say don't call the police

GAP insurance is stupid. They pay the difference from the lender not the actual cost you paid for the car. If they offered actual cash from day 1 it be a great deal because you could just total your car after a few years and get all your money back.

@MikeYFItalian

5 жыл бұрын

Alex Why would they pay out the total cost of the car? If you buy a 30k car, in 4 years you won’t get 30k for it.

@alexandercrush

5 жыл бұрын

@@MikeYFItalian And that's why it's a waste of time.

@rorierobinson4408

5 жыл бұрын

There is something called return to invoice Gap which give you back the original price you paid

@beautifulbutterfly7294

5 жыл бұрын

@@rorierobinson4408 thanks

Can I also cancel my Credit Death insurance? ($524) Also my New Warranty? ($2,499)

@commoncentsmike7733

6 жыл бұрын

Warranty for sure, and the accidental death insurance is more than likely removable as well, but you won't get any credit for what you've paid into it so far.

@Eric345

6 жыл бұрын

COMMON CENTS MIKE Can I still get it after I sell my car? Thinking of selling my car and buying one cash.

@commoncentsmike7733

6 жыл бұрын

No, you would need to get them credited back to you before you sell.

@Eric345

6 жыл бұрын

COMMON CENTS MIKE I was thinking of selling today. Also the car company is dodging my calls after I told their secretary I wanted to cancel my GAP. I’m going to have to go in person. This is going to be a tough one. 🥊

My car was estimated at $12,998 but with gap it costs19,998 w is it worth it or does it sounds bad deal

@JoseGarcia-kv6fw

6 жыл бұрын

Interest is 3.0

@JoseGarcia-kv6fw

6 жыл бұрын

Im financing

@commoncentsmike7733

6 жыл бұрын

Yeah, if you're upside down by that much then it may be a good idea to keep it. It's one of those things where even if you have it, you hope you never have to use it, you know?

Gap added to my note went from 405 to $434 monthly

@commoncentsmike7733

6 жыл бұрын

How long is the loan term? That could really add up...

@GotdayumMarie

6 жыл бұрын

COMMON CENTS MIKE for the rest of my damn life 💀😂😂😂😂😂😂

@commoncentsmike7733

6 жыл бұрын

>

website @t

Awful, how poor and slow sorry.

I have a quick question.. I had my loaned car I was paying full coverage insurance.. I got involved of wet reckless (DuI) accident my insurance paid $4000 from $8000 and gap insurance will not pay it off because it was for criminal accident.. My question 1) Why the insurance will not pay the whole car if I was in a full coverage 2) Is there any way around to make the Gap insurance pay for it? Any help I will really appreciated it Thank you so much

@chrisblevins755

4 жыл бұрын

If you were under the influence, the gap holder has void the gap insurance because they see you as breaching the agreement

@raonzzz

4 жыл бұрын

@@chrisblevins755 :( $4000 away from my pocket thanks for the reply:) you are awesomeeeee