You just found the perfect set of wheels. You stayed within your budget. The sales agent helped you get the price you wanted – Now that’s makes for a good day!
Then you realize, there’s more than just the base price of the car you hadn’t thought about.
As you prepare to buy a car, there are a number of other things you need to consider to ensure you are getting the best deal today, and that you’re protected tomorrow.
GAP Insurance – What is it, and why do you need it?
GAP Insurance, short for Guaranteed Asset Protection, is insurance to ensure that if your car is totaled and you owe more than the current market value of the car, you are covered for the difference between what your auto insurance covers (which only pays out at the current market value) and what you still owe on the car loan. This is a great added investment whether you are buying a brand new car or even a used one and only utilizing a small down payment.
Are extended warranties worth it?
While you never want your car to break down it’s better to be prepared because, at some point, it will. Like anything else with moving parts, eventually, it will have some kind of an issue that needs repaired. Extended warranties come in all shapes and sizes, but they are designed to cover the larger-priced repairs that can sometimes pop-up with cars, especially when buying a used vehicle. Extended warranties are certainly worth considering, because you need reliability and peace of mind.
Keep in mind, that extended warranties vary in length of time, amount of coverage, and price. Do your homework and if you can fit it into your budget, this add-on is definitely something to consider.
Credit Life Insurance – What’s That?
Credit Life Insurance is all about you, and protecting your family from a financial hardship. In the terrible situation that you should pass away while there is still a loan balance on the car, this insurance will kick in and pay the remaining balance in full. It works just like life insurance, only for your car.
This policy is especially needed if you are buying a brand new car and putting down a limited amount – if you’re financing a larger sum, this additional protection is a good idea for your family.
What About Credit Disability?
A sudden and unexpected injury can quickly change the financial future for you and your family. Because there is no way to predict major life events, adding credit disability insurance is another way to protect your family from the unexpected. If you were to become disabled while you have your auto loan and can’t work – and therefore unable to pay for the car loan – credit disability insurance kicks in and pays off the balance.
When these four options are put together, it ensures you and your asset are protected and your savings, salary, and other life insurance claims go to where they are needed the most.