Do — You Need Gap Insurance When Buying A New Car

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Do — You Need Gap Insurance When Buying A New Car

If you put down less than 20% , you will likely have "negative equity" (owing more than the car's value) for the first few years.

While not required by law, gap insurance is a near-necessity in several common situations: do you need gap insurance when buying a new car

Your loan term is (36 to 48 months), allowing you to build equity faster than the car depreciates. If you put down less than 20% ,

Luxury sedans, some electric vehicles, and SUVs often lose value faster than average. some electric vehicles

Loans stretching 60 to 84 months mean you build equity slowly, often falling behind the car's rapid early depreciation.

You have three main options, but they vary significantly in cost: What Is Gap Insurance and How Does It Work? - Progressive