New; Questions on Extended Warranty and GAP Insurance.

[jericher]

I purchased a 2014 Sport about 2 months ago and finally got around to uploading some pictures.

She is the base model with the Soul Red Paint and Touch Screen with some extra trim pieces from china.


Questions;

I added the Total Care Extended Warranty and GAP Insurance without thinking.

The Total Care is managed by Easy Care for 75k miles.

GAP Insurance is managed by GS Administrators out of Houston.

If I cancel both, do I get a check for the amount paid to others on my behalf from the dealership or do I see a reduction in my monthly payments?

I had a $8k trade-in and I am financing for 60 at 2.9% (First time car buyer).

I am now thinking the GAP insurance was not beneficial and the warranty not necessary.

Any thoughts?

 

[CXVille]

Welcome!!

How much you get back, if any, if you cancel will be in the paperwork or you will have to call them. Get it in writing before canceling it.

Anything sold at a new car dealership is done so because of profit. Anything. Everything. Gap insurance and warranties in particular. Which means that on average, they are not worth close to what you paid for them. Some folks have come out ahead, but that is rare. I take the standard warranties and politely decline everything else.

 

[Skorpio]

Welcome, and nice ride! What's her name?

 

[CX-SV]

Welcome!!

Anything sold at a new car dealership is done so because of profit. Anything. Everything. Gap insurance and warranties in particular. Which means that on average, they are not worth close to what you paid for them. Some folks have come out ahead, but that is rare. I take the standard warranties and politely decline everything else.

Welcome jerecher. Agreed w/CXVille, cancel.

 

[njcarguy]

I would NOT cancel GAP. You might be able to shop around but I just get mine through the dealership. The extended warranty is something they'll ask if you want once you factory warranty is up and they'll give you a better price for the warranty too.

 

[mazdadude]

Yes, you can cancel, and receive the PRO-RATED amount back.

Gap insurance is great to have, but make sure that your personal auto insurance does not already cover this. (Possible but unlikely.)

If you plan to keep the vehicle after the 36k warranty is up, paying for the extended warranty now can help fight inflation. (Will the warranty cost less in 3 years? Not likely.)

Now it is possible that the dealer grossly marked up these items to pad their profit.

 

[Rhizome]

I bought a '15 CX-5 GT AWD and were offered extended warranty and GAP insurance. It was a very interesting and comical experience. The finance person used fear tactic to sell me these items AFTER I have declined them when my salesman offered. Initial quote for extended warranty was ~$3200. I declined. Offered went down a bit. I declined (starting to get annoyed). Then he said, "how about $100 above cost? $1150?" I said "No. I'll take my chances. Thank you." He got all red in the face. He went through the rest of the paperwork in about 5 min!

A massive amt of markup!

 

[AZJoeD]

Everyone has opinions on warranties and GAP. I personally do not believe in them. I declined both from my dealership, much to their chagrin. If you are someone that will make use of the warranty then by all means keep it. As for GAP, you will get a much better price from your insurance company than from the dealer. My insurance company quoted me $16 per year for GAP. Way cheaper than the dealer.

 

[RG_Flyer]

I buy neither. Gap insurance is the difference between what is owed and the cash value of the vehicle. Everyone has a different risk level and tolerance for debt, but I never finance enough to be upside-down on the vehicle. As for extended warranties, I self-insure by keeping some savings put away for repairs and for my next vehicle. My current vehicle has 169,000 miles and knock-on-wood, has yet to see a mechanic except for tire changes and an alignment. I do not have a lot of money, I just try to discipline myself and not go overboard.

 

[Skorpio]

I buy neither. Gap insurance is the difference between what is owed and the cash value of the vehicle. Everyone has a different risk level and tolerance for debt, but I never finance enough to be upside-down on the vehicle. As for extended warranties, I self-insure by keeping some savings put away for repairs and for my next vehicle. I do not have a lot of money, I just try to discipline myself and not go overboard.

Sound like you got your head on straight. I basically follow the same philosophy

My current vehicle has 169,000 miles and knock-on-wood, has yet to see a mechanic except for tire changes and an alignment.

169,000 on brakes too, or you did them yourself?

 

[CX-SV]

I buy neither. Gap insurance is the difference between what is owed and the cash value of the vehicle. Everyone has a different risk level and tolerance for debt, but I never finance enough to be upside-down on the vehicle. As for extended warranties, I self-insure by keeping some savings put away for repairs and for my next vehicle. M.

Agreed, skip both. I always do.

 

[LarryFL]

Gap is sometimes a good choice if you put down $0 on a 5 year loan. With leases, it's required (but usually included in payment). As for loans, you will be upside down on the car for the first 3 or four years on 5 year loan. If the car is totaled in that 'upside down' time, your insurance will write you a check for the car's actual value, and you will need to come up with several thousands of dollars within a short period to cover the rest. The bank wants the loan closed fast because they have no collateral anymore. GAP will cover that difference an write the check for you.

Usually, most loanees skip the gap because they put down so much down payment that they will only be upside down for a short period if at all. Since we put down $10K on ours, we will probably never be upside down over the length of the loan, so we skipped it.

 

[RG_Flyer]

Sound like you got your head on straight. I basically follow the same philosophy



169,000 on brakes too, or you did them yourself?

Yes, I did them myself. I probably should have wrote, "I haven't required any warranty or sourced mechanic-work", but I have done general maintenance (brakes, fluids, filters) and repairs myself.
The only critical failure with the vehicle was the alternator, which I replaced at 150,000 miles. This would have likely been beyond the period of an extended warranty (the vehicle was 7 years old at the time).

 

[MazSter]

With extended warranty. ..bought one a few years back on a Ford. .they wanted 2100 for it..they settled for $1100
Sold the car 10 months later and found they prorate it...got a check for $450. Has to be done from purchased dealer as they all work there own deals.
Thinking I got ripped off..checked other dealers and found they all prorate based on time and mileage

Sent from my SPH-L720 using Tapatalk

 

[pooh6369]

Hello,

Got GAP thru Progressive cost me a extra .56 a month. Didn't want to give dealer any extra profit declined extended warranties.

 

[jericher]

Cancelled the GAP. Got back about $530 of the $600. It was credited to my chase account principal.

I have not decided to cancel the extended warranty or not..

She doesn't have a name yet.

Also, better photos;

 

[nguyendot]

Gap cost me next to nothing on my insurance. That's how I would do it