Phantom Menace

Hey guys, I'm curious to know if and how many of you guys got either Gap Insurance and/or Extended Warranties? We got the extended warranty for my 8 and are being offered an Extended Warranty and/or Gap Insurance for the 350Z.

For those who may be unfamiliar with Gap Insurance, it is a policy that in the case the car gets damaged beyond reasonable economic repair (damage is more extensive than the worth of the car) or is "totaled" by the insurance company then Gap Insurance will cover the difference between the current value of the car minus what you owe on your loan. That is, if you total your $30k car and it is only worth $25k then, without Gap Insurance, you would still owe a balance of $5k to the bank. This sucks as if you (knocks on wood) get in an accident bad enough to "total" your car, you would usually have medical bills on top of trying to get another car.

As for the Extended Warranty, Nissan and Mazda's Extended Warranties are pretty expensive compared to other makes. Honda, for example, charges a mere $1k for an extended warranty covering the car for the entire loan term. Mazda charged me $3k and Nissan wants around the same amount.

Should I go for the Gap Insurance, Extended Warranty, or both?

Thanks in advance.

newcastle

iTrader: (3)

I got GAP (never know when shyt will hit the fan) and I got the extended warranty primarily because it was my first rotary.

Jedi54

iTrader: (7)

I guess it depends on your situation; how much you're putting down on your car, how much your insurance company is charging you for gap, etc.

I financed less then 50% of my car's price so I didn't see the need for gap insurance. As for extended warranty....I honestly didn't even look into it. (you can always buy it later)

Phantom Menace

Well, I put nothing down on the Z. It was another one of my "impulse" purchases. I mean I was in the market for another car once my Commanding Officer (wife) gave me the green light to start looking but I had about 80 cents in my pocket when I walked into the dealerhsip. I remember because I wanted to buy something from the vending machines and everything cost $1.

EDIT: The Gap Insurance is about $300 and Extended Warranty is a bit over $2.5k...

You paid half-down? Wow. I wish I had your will power! Your monthlies must be real sweet!? My main quam with Gap Insurance and Extended Warranties are, for the total price--I could've gotten a much higher model Z or a "higher end" type of car, like an Infinity, Lexus, or BMW (used). I was attracted to the Base because I knew it'd be a pretty low monthly payment and good bang for my buck. With Gap Insurance and an Extended Warranty--that wouldn't be the case.

rglbegl

$3000 A PIECE???????????? Was that a misprint?

GAP insurance is $200 well spent!!!. ( IF you owe substantially more than 2/3 its LOW book value. ) If you pay more than $400 for GAP . . . you are getting KILLED!!!! Most banks do it cheap . . . call your current lender, buy it from them direct.

And a warranty can be bought at any time. Most times it can be rolled in to the remainder of your payments. ( Term extension or higher payment )

Stavesacre21

Make sure to check with your car insurance provider to see if you already have GAP coverage first. I initially had GAP and didn't realize that my auto insurance provider also carried it. Safe to say i sold that back and got the $500 for GAP back.

However, I also got an extended warranty as well for 7yr/100K miles. I have always been a fan of paying everything up front and enjoying the peace of mind thereafter. Some others don't care for them, and to everyone their own.

The one thing useful that I will say is if you get a warranty, make SURE that it is an OEM santioned warranty. I can't stress that enough. 3rd party warranties are what give extended warranties a bad name.

However, I do think on quickly depriciated cars (such as the 8), GAP coverage is a good call for anyone planning on making minimum payments and taking their time. You'd be surprised how long it can take to gain equity on fully loaded 8 when it's total TTL total is more than $30K.

and I may be really behind the times here, but when/why did you decide on a Z, phantom? Just curious.

Phantom Menace

LOL! Yeah, my bad. It is about $300 or so...

Long story brother! In a nutshell:
a) Wife needed another car
b) I taught her to drive my (her) 8
c) She fell in love with it
d) My fault she needed another car
e) I gave her my 8 and was looking for another 8--but seriously, that's absurd
f) Went to Nissan with my cousin, he wanted to buy an Altima but changed his mind
g) I test drove a Base Z on "sale"
h) I signed papers...

Stavesacre21

Can't say i really blame you for a different car...as long as you have an 8, you'd have to be a serious rotorhead to buy another. I love my 8 and all, but if I could have another car in addition, it probably wouldn't be a second one.

What an irony having 2 rivals in the same garage...I'm sure we'll get un unbiased opinion on the greater of 2 evils at last!

Phantom Menace

In all honesty, I don't think I can compare them equally. The 8, being a GT, and the Z, being a Base...The motor of the Z IS incredible and all, but not incredible enough to cover all the ground, in other aspects (i.e. creature comforts) of judging cars. In the Z I feel real bare-knuckled & stripped down. In the 8, sans the infamous lack of torque, I feel pampered. I miss alot about the 8 when I drive the Z. True, most of it is due to the stripped down base model Z. If I can get my hands on a 350Z GT...then, that would be a nice "show-down!" All-in-all both cars cost about the same, with Mazdas enormous factory rebates and the small bone Nissan threw me for their "100K Car Sales Event," so any kind of comparison I could do would be "bang-for-buck." The RX8 (GT) takes that hands down...

Hightshoe

I got the GAP coverage for two reasons. One, I had some negative trade-in so if I totaled it, i didn't want to still owe money on it. And two, it was only like $8 a month. I would only get the extended warranty if the car was approaching the end of its current warranty.

StewyRX8

I took both of them to be safe. Didnt want to end up negative if something happened and it is a rotary, even though I love it, stuff could happen...

Detrich

u probably don't need gap insurance unless (a) u didn't put much $ down- maybe less than 30% (b) u tend to be accident prone. the extended warranty depends on how long u plan to own the car and how likely u think it'll break down. i've been driving for over 17 years and have never had or needed either one. but, only u can decide how much insurance u'll need.

Stavesacre21

I bet you'd be surprised at how much money the greater population puts down on a new car. It probably won't be near as much as you'd imagine. With all the catchy incentives that manufactuers are offering now, i know of a handful of people that didn't put anything at all down.

and yes, i will agree that if you plan on only owning yoru 8 for a season, or a couple years, the extended warranty wouldn't be all that wise. However, on such a purchase as a new sports car, I'd hope that most people plan to keep a hold of it for a good while. I know i'll be riding mine into the ground someday...making it all worthwhile.

Feras

iTrader: (1)

i remember getting my extended warranty thrown in when i bought the car??? either way i have an extended warranty and dont think i paid a dime for it.

mysql101

I financed through a local credit union. GAP cost me $100.