got approved for loan, then told they don't offer GAP for teslas?

[xanatos]

I got approved for 100% financing for my M3, then when I asked about GAP, was told by my credit union they don't offer GAP for Teslas! I really want the GAP for peace of mind, so what are my options?

Can I buy GAP from a 3rd party that is different from my lender?
Or do I have to abandon this lender and find another one?

I really liked this credit union since the rate is pretty good at 3.2%, so it would be a shame if this GAP issue makes me walk away from them...

 

[V__2]

It appears possible to have GAP via your auto insurance company at a much lower price as part of your insurance policy?

 

[suwaneedad]

It appears possible to have GAP via your auto insurance company at a much lower price as part of your insurance policy?

This. If only had gap coverage on a car loan when financing came from my insurer. (USAA in my case.) I didn't even realize gap was offered by non-insurers!

 

[Kermee]

When I've leased vehicles, GAP was always covered by the leasing underwriter.
When I've financed vehicles, I had to add GAP coverage as an additional premium through my auto insurer.

 

[Ziggy2]

I've always added it through my CU when financing new vehicles. Ranges from $300-$425 and they will pro-rate a refund if you sell/trade the vehicle before the loan is finished.

 

[Ciditad]

I got gap insurance with my CU and loan. Cost was relatively minimal ($400) and I think well worth the peace of mind.

 

[ItsNotAboutTheMoney]

I got approved for 100% financing for my M3, then when I asked about GAP, was told by my credit union they don't offer GAP for Teslas! I really want the GAP for peace of mind, so what are my options?

Can I buy GAP from a 3rd party that is different from my lender?
Or do I have to abandon this lender and find another one?

I really liked this credit union since the rate is pretty good at 3.2%, so it would be a shame if this GAP issue makes me walk away from them...

Cancel the purchase. Start saving.

 

[V__2]

For me with Progressive insurance GAP like overage is $5.50 every 6 months. Hundreds of dollars seems expensive? Different coverage?

 

[Knightshade]

For me with Progressive insurance GAP like overage is $5.50 every 6 months. Hundreds of dollars seems expensive? Different coverage?

Are you sure you don't mean $5 every 1 month? Because that's what they say the average they charge for it is...

What Is Gap Insurance & How It Works

Which would be about $60/year- meaning for say a 5-7 year loan hundreds of dollars is exactly right.

 

[rraghu78]

If we do a 20% down payment, do we still need GAP insurance?

 

[jjrandorin]

If we do a 20% down payment, do we still need GAP insurance?

That would be your opinion, on whether you think if something happens there will be a gap between what you owe and what the car is worth. I have no idea what these will be worth, but I put down about 60% so didnt feel like I needed gap insurance in that case. If I was putting down 20%, I probably would have gotten it, especially for the cheap price my Credit union offers it (299).

 

[RayW]

Are you sure you don't mean $5 every 1 month? Because that's what they say the average they charge for it is...

What Is Gap Insurance & How It Works

Which would be about $60/year- meaning for say a 5-7 year loan hundreds of dollars is exactly right.

Mercury GAP insurance is about $12/6-months... you only need it while upside down on the loan, so maybe two years or ~$50 total

 

[xanatos]

Bummer, I have Geico and they don't offer GAP at all for some reason.
I thought about it and decided to move some money around and just pay cash. I figured that would be the easiest way to avoid any delays and have the transaction go smoothly, especially with the end of December rush coming up soon.

 

[V__2]

Are you sure you don't mean $5 every 1 month? Because that's what they say the average they charge for it is...

What Is Gap Insurance & How It Works

Which would be about $60/year- meaning for say a 5-7 year loan hundreds of dollars is exactly right.

The price is for 6 months period. Progressive only allows a "GAP" of 20% but this should suffice. Others are quite similarly priced with full GAP protection, afaik.

 

[M3BlueGeorgia]

Generally a LOT cheaper to get "gap" insurance from your insurance company rather than the loan company.
Also, will protect you rather than just protecting the loan company.
Basically, if you actually need it, its a win-win.

 

[philaKing]

Anyone know of third party GAP providers? Lender doesn’t offer and neither does my insurance (unless i finance through them which i am not)

 

[RayW]

Anyone know of third party GAP providers? Lender doesn’t offer and neither does my insurance (unless i finance through them which i am not)

From my mother-in-laws experience, I know dealerships offer 3rd part GAP, but it's in the range of $40/month for a $25K car w/10% down... you're paying $40/month for about $100 in coverage... I had to put an end to that.