i think if you are upside down $2000-3000-4000-5000 you guys are right they will pay fair value for the car.
But $948, thats EASILY a difference between 2-3 months of an appraisal. No one is going to get gap insurance for that $948, and furthermore Gap doesnt actually protect you fully anyway.
What happens if you buy a NEW car for $30,000. The second you drive it off the lot, it drops 15% in value meaning car is WORTH $25,500. The GAP protects you for that $4500 right ?
Does gap take into effect interest? it has to. How do you protect a principal that has interest rates that can very from .9%-9%?
The higher the interest rate, the less principal gets paid off. The less principal gets paid, the more and more upside down you get as time goes on. Some cars drop in value much quicker than others.
Take a DOmestic car. There are Chevy cars dropping 40-50% in value in 2-3 YEARS! Conversly there is Honda Fits that are going for $1000 under MSRP that are 2 years old.
Are you telling me that an insurance company would cover someones $30000 car that was worth $15000 in 2 years just cause they carried GAP?
I doubt it.
Wait it out THEY WILL PAY
