When it comes to pre-owned cars in Indianapolis, IN, there’s no team better than Jaguar Indianapolis. We make it our mission to match drivers with the perfect pre-owned vehicle every time, and we’re sharing all you need to know about pre-owned vehicle ownership. Here’s a closer look at gap insurance and your pre-owned Jaguar.
What is Gap Insurance?
Gap (guaranteed asset protection) insurance is designed to have your back. Gap Insurance covers the gap between what the insurance will pay out and the cost of the vehicle and is most typically used in situations where the vehicle has been stolen or totaled.
Does My Pre-Owned Vehicle Need Gap Insurance?
Gap insurance is actually required for most leased vehicles, as the vehicle technically belongs to the dealership, and they’ll want it protected in the case of damage or theft. But is it useful for drivers who own their vehicles to have gap insurance as well?
To start, it’s smart to purchase gap insurance if you’ve financed your vehicle, especially if you owe more on your car than it’s currently valued at. This will help to protect you from covering the difference. If you have a long term, your vehicle is newer than three years old, or you put down less than 20% on the day of purchase, gap insurance may be a good option for you.
If you’re thinking about gap insurance for your pre-owned car, these are a few of the factors you’ll want to consider. You’ll want to account for vehicle age because of depreciation and term-length because the vehicle might be depreciating faster than you’re able to pay it off. Don’t forget to factor in the down payment as well, because there’s a higher chance that you’ll own more than the vehicle’s worth if you put down a low payment.
Learn More About Jaguar Financing
From taking out gap insurance to kicking off the Jaguar financing process, Jaguar Indianapolis is here for you. Meet with our expert team to find your next pre-owned Jaguar model today.