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Old 09-16-2006, 02:33 PM   #1
electraglider_1997
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Default Re: Is Gap Insurance Right For You

Why buy a new japanesa bike that is worth thousands less the second it becomes yours instead of the dealers?? If your finances are such that you need to worry about GAP insurance then do yourself a favor and buy a used bike for thousands less. A used bike makes a lot more sense for folks that are up to their ears in debt than these same folks adding to that debt by having to buy that over priced new vehicle. Just ask yourself how can that 1 or 2 year old bike with under 6,000 miles be 3 to 5 grand less than that new one. It's because that sap selling it absorbed all that rapid depreciation, and better him than you.
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Old 09-16-2006, 02:35 PM   #2
electraglider_1997
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Default Re: Is Gap Insurance Right For You

Oh yeah. If you truly don't have to fret over that depreciation because you are flush with cash then, "Good for you".
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Old 09-16-2006, 09:09 PM   #3
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Default Re: Is Gap Insurance Right For You

Excellent Post..Good advice...My wife and I are pretty fiscally conservative. All of our cars are paid off including our daughters. We paid cash for my bike. My wife who is very intelligent and spent years working in the legal field came to same conclusion you did (I am trying to get to go to law school). If you are an older rider get a big liability policy.. Otherwise if you cause a wreck and don't have a liabliity you can have up to 10% of your salary attached or in some states 25% until the judgement is paid off..If you have any assets they could be used to pay off the judgement...We have neighbors and friends that are so in debt that the continually get home equity loans to paid off high interest rate credit card loan. Unfornuately, with Ws irresponsible fiscal policy interest rates are rising and many folks have adjustable rate mortgaages as well. Couple that with the same folks propensity to have the latest model gas guzzling SUV sitting in the driveway and you are seeing some folks getting into a bind.



Your advice to younger rides is excellent. A used bike and a small twins like the SV650 is the way to go.
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Old 09-16-2006, 09:10 PM   #4
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Default Re: Is Gap Insurance Right For You

Excellent Post...Good sound advice.
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Old 09-17-2006, 04:35 AM   #5
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Default Re: Is Gap Insurance Right For You

Why would an insurance company buy you a brand new bike to replace a 4-month old totalled/stolen bike? You should expect coverage sufficient to buy another 4-month old Gixxer or whatever, but not a new one. We all like new bikes but everything depreciates. If you want Gap coverage to deal with depreciation, that's your call. I agree with other posters that depending on the type of bike, great deals can be had on depreciated machines with modest mileage.
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Old 09-17-2006, 04:49 AM   #6
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Default Re: No Down Payment? Looking for Trouble

The first clue that you're courting disaster is when you borrow the full amount of money to buy the bike; that is, you can't afford to make a down payment.



That's a pretty good indicator that you're over-extended.
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Old 09-17-2006, 04:52 AM   #7
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Default Re: Is Gap Insurance Right For You

I don't want to spark a political flame war but I think you're a bit off base with the comment on interest rates. Even though they have risen in the past year they are still lower than in the Clinton years, which were good. I bought my home for 9% in 94 and currently the mortgage rates are still in the low 6's. They've been there for quite a while. 4.7% unemployment, over 3% growth per quarter for how long now and record low interest rates. I'll take those anytime. However, Bush does spend like a drunken sailor on his first shore leave and that has cost him a lot of support. The economy has taken some huge hits, 9/11, Afganastan, Iraq, and Katrina, but keeps on chugging along.



Lets not forget how bad it can really be. When peanut boy was the President it was double digit everything. I bought a bike with 18% interest. I wanted it real bad.
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Old 09-17-2006, 05:06 AM   #8
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Default Re: Is Gap Insurance Right For You

Meant Afghanistan. Late night, early morning.
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Old 09-17-2006, 06:07 AM   #9
electraglider_1997
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Default Gotta have it now

Bad philosophy. I'm sure most of us get that almost drug like urge that they have to have that something, whatever it is, and they got to have it NOW! I've found that if I can just regain my senses and wait, that the overwhelming urge will slowly dissipate to the level that I will see clearly once again. You all know what I mean. Count to 1000, the dealer will hate you for it but your finances will surely not suffer.
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Old 09-17-2006, 09:44 AM   #10
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Default Re: Is Gap Insurance Right For You

My personal acid test for the finance test:



Is this soley for entertainment?



if the answer is yes, than I pay cash. If I can't afford it I don't buy it.
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