When Gap Car Insurance Isn’t Necessary

Gap auto insurance, in case you didn’t know, picks up the tab if your car is totaled and you owe more than it’s worth. Although gap insurance coverage can be purchased for as little as $30 a year it isn’t always necessary.

One instance is if you pay cash for your new car; if you don’t have an unpaid loan balance, there is no financing gap to worry about.

However, paid for or not, a new car will still depreciate at the same rate. In this case you might want to look at New Car Replacement Insurance.

New car replacement insurance is offered by a number of carriers for different lengths of time. Some insurers offer replacement insurance for only a month while others, such as Allstate, offer a plan where “you may be able to get a totally new car” if totaled in the first three model years.

A second instance when you would not need gap insurance is if you put at least 20% down. In most cases if you put 20% down the rate at which the car loan is paid down should track pretty close to the depreciated value of your car.

Another situation where you might not need gap protection is if you lease a new or used car. In many states, such as New York, gap insurance is mandated by law to be included in the quoted lease payment amount.

Yet despite this there are unscrupulous sales people who will try to sell you gap insurance anyway – and it won’t come cheap. The gap insurance sold by car dealerships today is a high profit add on much like upholstery protection or under carriage coating was years ago.

The average one time payment for gap insurance purchased from a car dealer averages around $548. This is almost 5 times more than it would cost if purchased from a major insurance carrier for as long as you needed it.

The last example illustrates why you would need gap insurance, but for only a short period of time.

The recent loosening of bank purse strings has also meant lower car financing rates for both new and used cars. As a matter of fact the rates are very similar. At these new low rates the outstanding loan balance and depreciated car value quickly reach parity – usually within two years.

However, that first year of car ownership is still a killer for car values. For instance, if you borrowed $40,000 for 60 months at 6% with zero down, 20% of the loan would be paid in the first year but your car would have depreciated 25%. This would leave you owing roughly $2,500 more than the insurance company would pay out if your car was totaled during the first year of ownership.

But, as previously mentioned, during the second year of ownership the value or your car and the loan balance would even out. So although you won’t be able to eliminate the purchase of gap insurance entirely, you would only need it for the first year of ownership.

Guaranteed Auto Credit From Auto Net Credit Centers

Presently, there are many Auto Net Credit Centers that auto finance endorsements from instant Easy Credit Auto marts in the USA. Now you can even get an okay for Instant Car Loans from banks, credit unions and even from any local auto mart even if you have a poor credit balance. After completion of the auto loan endorsement, an agent from the department will immediately process your request. The representative will then contact you and discuss what you need to settle on which car loan option is suited best for your circumstances.

Easy Credit Auto sales are meant for people who face credit problems that do not meet the criteria for loans from banks and credit unions. This online car loan application is completely secure and if anyone is planning for a car loan, these auto credit centers are the right place as they have made it easy for anyone in the United States with credit problems to buy a car. There are many reasonable auto credit loan choices for consumers with fair, poor, no, slow and low credit scores.

An instant credit approval depends on what information the applicant submits online. All information, for example where employed and salary has to be verified. The applicant should be as precise as possible while completing the online easy credit application form. If any part of the information submitted in the application does not match with what is verified, the instant car loan authorization will be annulled.

So if the salary, employment and all other information submitted is correct after verification, the guarantee of the car loan will be approved. All approvals are based on what is affordable on a monthly basis. Money down will be required if the car that is bought is more than the approval amount.

While applying for a Guaranteed Car Finance agreement, the applicant should set realistic expectations like selecting the right car, as this is the most vital part in getting a Guaranteed Car Finance loan approved. As soon as the auto mart sets a financial plan for the applicant, they usually give the nominee a choice of three or more cars. Once the selected applicant picks a particular car, he/she should have it thoroughly checked by an ASE Certified Master Mechanic.

The next immediate thing to reflect on is the Guaranteed Auto Credit as the loan term should preferably be kept as short as possible. If there is enough space in your budget once you’ve cut down on the term, consider the purchase of GAP insurance and/or an extended warranty to cover the length of the financing contract. In particular, the first auto loan with poor credit will have the interest rate quite high, so the shorter the term is kept, the less the interest paid.

So now with so many Auto Net Credit Centers an easy auto loan approval online is easily available. This premier EZ application will take just a minute to complete. All information submitted by the consumer is kept completely private and guaranteed secure.

Second Hand Cars Market In India

A used car can be much cheaper than its new counterpart. The depreciation is lesser and car financing too can be obtained easily. A survey was conducted and it was revealed that the demand for the used car market in India per year is 1.4 million cars. Isn’t that surprising?

Unfortunately, only 10 per cent of the Indian used car market is organized. The remaining 90 per cent remains unorganized. Out of this unorganized segment, 30 per cent belongs to the automobile vendors and the remaining 60 per cent transactions are usually carried out directly by the used car buyer and customer. Most of the time, the two parties know each other. Such transactions happen in large numbers but within the law limits of India.

Car buyers, however, need to be aware that such transactions can be risky. In a country like India used automobile buyers get cheated very often. The pricing, maintenance claims and clear ownership records can all be made up. Mechanics who test the used car and middlemen who carry out the deal can manipulate a decision. First timers who have no clear idea of the condition of used cars usually available in the used car market are fooled very easily. The good-for-nothing old automobile fetches a good price.

Second hand car dealers, very often, use fake parts to offer an attractive price. The used car dealers get 5-10 per cent commission by settling the deal through low-quality parts. The new old automobile is therefore prone to repairs every now and then. However, this is not always true. The second-hand Indian market also consists of sellers who sell off their well-maintained cars in order to upgrade to bigger cars.

A pre-owned automobile may not come with warranties, OEM parts, insurance and taxes and this is exactly where auto makers have endeavored to bring in a system of checks and balances. The second hand market in India today has certified used car outlets screened by car makers. For the automobile seller, the certified used car outlet gives the best market price, thorough evaluation by experts, and an option to choose any other automobile from the manufacturer range. For buyers, such outlets offer a lot more. They get a warranty on the used automobile, insurance, repairs that use OEM parts and thorough checkups by trained technicians.

Some of the well known certified used car dealers in the Indian market are Maruti TrueValue, Honda Auto Terrace, Ford Assured, Toyota U Trust, Hyundai Advantage, Mahindra and Mahindra’s First Choice. Many more are yet to come to India. The branded used car chains are slowly realizing the potential of the used car market.

Industry experts expect 50 per cent of the used cars sales to be brought under organized car market over a period of 3 years. Used car outlets will probably spread into II tier cities by 2012. Car makers have realized that the used car market can generate very high revenues. Top car players say that their used car ventures are paying handsome dividends. Hence the companies are now making it mandatory for their dealers to run used car outlets too.

The branded used car outlets have now started buying and selling off second hand cars from multiple brands. By offering a one-stop shop for all customer queries, the outlets can win over customer loyalty. They provide assistance in not just buying and selling, but in financing, insurance and many other services too.