By purchasing gap insurance, the financial burden on the depreciating value of cars can be resolved. A new car’s value decreases by the time you drive it off of the dealer’s lot, and can actually be reduced by 30% during its first year of ownership. The decrease in the value of new cars can lead to a huge financial burden, as you can end up having a debt on your car loan that is larger than the actual worth of the car. Should you be involved in an accident or…
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Survey says that car dealerships profit big time from selling insurance products
Finaccord, a financial market research group, conducted a study across 26 countries regarding the financial impact of up-selling consumers on “extras” when they purchase a new car. The numbers are staggering on how it’s affecting car dealers and manufacturers profit margins. When dealerships partake in selling insurance products like gap insurance, extended warranties, auto insurance, roadside assistant programs and creditor insurance they benefit wildly. According to Finnacord, their study shows the importance of the said factors to the automotive industry in the whole of Europe. In the countries that were…
Read MoreAuto gap insurance shopping tips
Gap Insurance is beneficial if you owe more money on a vehicle than it is worth at the time it is stolen or totaled in a car crash. It is sometimes offered as an add-on to your current auto policy, but can also be offered by the car dealer at the time of purchase. This type of insurance can be very helpful, especially when you are purchasing a newer vehicle. If your current auto insurance company offers it as an add-on you might want to shop around to make sure…
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