if the dealer is offering it optionally, they are making money on it.

 

Why so nasty? I would almost never buy GAP, but I did a little depreciation test today by looking up my 2015's value on kbb.com. My truck sticker end for almost 45k (after subtracting the 2k 302a package discount). I paid about 34.5k, so I'd say that was a pretty good negotiation given it was below A plan pricing. I decided to finance it (was just going to pay cash but couldn't turn down almost free financing) as my local CU had a .99% 2 year loan. I did finance all of it (so 0 percent down), including the sales tax. That truck with less than 4k mikes is worth about 30.5k according to kbb.com on a retail sale, and around 29k on a dealer trade.

My point. These things have quite a bit of depreciation in the first year, and 20% isn't too far fetched, even with negotiating a decent deal. (20% of 35k is 7000, so 20% off of my purchase would be right around 28k....which I'd guess my vehicles value will be south of by next January.)

However, you do make a good point about people buying things they can't afford. I've seen plenty of people like that here on the forums (and out in real life for that matter). There are tons of people living beyond their means, just a paycheck or two away frome being broke.

 

odd... KBB quotes $35k-$38k as trade in-value range for my 2015 F150 Lariat 2.7 EB Screw with 501a and close to 11,000 miles on it and 11 months later. I paid around $40k for that truck. That's (13%) depreciation in the first year for the truck. Unless you have ZERO down payment (like in your case) or don't negotiate... GAP insurance isn't needed.

 

After reading all your comments, I decided I'm going to keep the GAP insurance for the first two years. After that, l'll get a refund on the prorated amount that will be added to my loan as a credit. I appreciate all your comments, I didn't do so well on negotiating the price of the truck. Also, I didn't do so well in finance which caused me to purchase items I really didn't need or want. Thanks for the help!!!

 

Good choice for you probably... but beware of all the add-ons you decide you "need" after prowling through this forum for a while.... smile... typically they do not increase the value of your vehicle, except in your eyes, but hey..... we do love our trucks....LOL....AZPLAT

 

I'm really liking my new F150but in hindsight I would have done a few things differently. There's definitely some good advice on mods from this forum.