Whether you’re interested in new or pre-owned Ford car, you have some important decisions to make when deciding what model you want to bring home. For example, you need to decide whether you should purchase gap insurance when you get a new or new-to-you Ford automobile.
What is Gap Insurance?
Gap insurance is a type of coverage that’s different from your standard car insurance. If your car is destroyed or stolen, your standard policy will reimburse you for your vehicle’s current book value. Your gap insurance policy will then kick in to pay the difference between your auto loan or lease balance.
As experienced Ford dealers serving Lowell, IN and surrounding areas, we can tell you that buying gap insurance is often a good idea if any of the following applies to you:
- Your down payment is less than 20 percent of the car’s purchase price.
- You’re going to finance your vehicle for 60 months or longer.
- You plan to lease an automobile.
- The vehicle you’re going to get will depreciate quickly.
- You intend to roll negative equity into your new car loan.
When you visit our Ford finance center near Merrillville, IN, you’ll learn that buying gap insurance isn’t a smart move for every motorist. If you’re going to pay for a Ford car upfront, there’s no need to purchase gap insurance. Similarly, if you can pay off your auto loan’s remaining balance comfortably, you don’t need this type of coverage either.
To find a new or new-to-you Ford vehicle and to get help deciding whether you should buy gap insurance when you complete your upcoming transaction, visit Fieldhouse Ford to talk to our automotive experts today.