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I went with the Lexus Financial for the financing of the new car instead of the credit union...figured it's just easier being that the car is being purchased out of state and less people involved makes it easier. I spoke to the finance man yesterday and I think he said GAP insurance is about $499 on a 60 month loan...I know the credit union charges only $399. Now, when I was asking the salesperson about something else today, he wasn't sure but I asked him not to forget to tell them I want the GAP insurance on the loan docs...he said he thought it was $799 for GAP insurance. So, I called the GAP dept at Lexus finance...the lady there would NOT give me a price on how much it is...I basically asked her if it is a negotiated thing and dealers can charge whatever they want...she said YES. Now, if they are going to charge me $799...I will tell them forget the loan w/ Lexus and go with the credit union (even though they already ran my credit at Lexus). Anyone else buy GAP and how much did you pay?
 

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Ouch, $799 on a 60 month loan is expensive given that the depreciation slows over time. My (Canadian) insurer will only sell this type of "top-up" for the first two years on new cars and I have a quote (CT not delivered yet) of $23 extra a year to be compensated the full purchase price.

Forum members have picked up some nice things for their cars for less than $799... even the $400 difference...
 

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Discussion Starter #3
Ouch, $799 on a 60 month loan is expensive given that the depreciation slows over time. My (Canadian) insurer will only sell this type of "top-up" for the first two years on new cars and I have a quote (CT not delivered yet) of $23 extra a year to be compensated the full purchase price.

Forum members have picked up some nice things for their cars for less than $799... even the $400 difference...
yes...since posting this thread, I spoke to someone who works at a different car dealership and he told me figure about $8/month...so, over a 60 month loan, about $480....now, you make an interesting point...it also matters how much you are financing vs cost of the new car. $8/month is something I can do.
 

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My GAP insurance was $875 for 66 months via Lexus Financial.
 

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My GAP insurance was $875 for 66 months via Lexus Financial.
Matt that sounds high to me but I don't know how much it should be and it seems like a good thing to have...what kind of rate on financing did you get from Lexus Financial and were you a previous Lexus owner to get any special rates?
 

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I was a previous Lexus owner, but did not finance via Lexus. I am fresh out of college, work history is 6 months at a hospital. 4.9% interest rate. I put 20% down. I did get $1000 off from the Lexus Loyalty Program.
 

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Discussion Starter #7
I was a previous Lexus owner, but did not finance via Lexus. I am fresh out of college, work history is 6 months at a hospital. 4.9% interest rate. I put 20% down. I did get $1000 off from the Lexus Loyalty Program.
I hear ya bro...
 

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Gap insurance is a fraud that dealers use to make more money on you. If you finance it into your monthly payment you're ALSO Paying interest on it. Do yourself a favor, call your car insurance company and get a quote. For me, from Allstate, it's only $30 every 6 months. Allstate only offers it for the first 3 years and you MUST add it on to your policy on vehicle purchase, they can not add it on after the car has been added to the policy. So for me, I'm paying $180 for gap insurance for 3 years.
 

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Have you checked with your own auto insurance company to see if they offer GAP insurance? They are usually much much cheaper than what the dealer would offer. And you don't need GAP for 60 months! At some point after 2 years or so, you would be over the break even point and even if you total your car, you won't need GAP to cover. Usually you only need GAP insurance for the full term of your payments if you are leasing.
 
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