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.
Is Gap Insurance Right For You
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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.
Your advice to younger rides is excellent. A used bike and a small twins like the SV650 is the way to go.
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.
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.
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.
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.
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.
Hey dude have you checked out the website
You are just flat wrong about interest rates. Clinton and the Republican Congress by balancing the budgets created the lowest interest rates in decades. W and this "Republican" have been fiscally irresponsible. Right now the economy is good cause like my neighbors who feel fantastic when the buy stuff on their credit card only to have to pay it back with interest the U.S is doing the same thing.
I would suggest you probably live in a Red State and are a Fox News Fan. I am a fiscally conservative Republican that thinks Bush has been a disaster. Cheney says deficits don't matter but Alan Greenspan and 99% of the world's economist disagree. Remember Cheney also said that there was a strong conection between Sadam and Bin Laden.
Links that prove my points
Greenspan and deficits
Clinton -Gore Economic record
The Federal Reserve has has only raised interest rates since Bush has been in office. During Clinton they only lowered it.. So your are just flat wrong..
This guy has it right i.e. I agree with this Republican
You are just flat wrong about interest rates. Clinton and the Republican Congress by balancing the budgets created the lowest interest rates in decades. W and this "Republican" have been fiscally irresponsible. Right now the economy is good cause like my neighbors who feel fantastic when the buy stuff on their credit card only to have to pay it back with interest the U.S is doing the same thing.
I would suggest you probably live in a Red State and are a Fox News Fan. I am a fiscally conservative Republican that thinks Bush has been a disaster. Cheney says deficits don't matter but Alan Greenspan and 99% of the world's economist disagree. Remember Cheney also said that there was a strong conection between Sadam and Bin Laden.
Links that prove my points
Greenspan and deficits
Clinton -Gore Economic record
The Federal Reserve has has only raised interest rates since Bush has been in office. During Clinton they only lowered it.. So your are just flat wrong..
This guy has it right i.e. I agree with this Republican
Hey dude have you checked out the website
You are just flat wrong about interest rates. Clinton and the Republican Congress by balancing the budgets created the lowest interest rates in decades. W and this "Republican" have been fiscally irresponsible. Right now the economy is good cause like my neighbors who feel fantastic when the buy stuff on their credit card only to have to pay it back with interest the U.S is doing the same thing.
I would suggest you probably live in a Red State and are a Fox News Fan. I am a fiscally conservative Republican that thinks Bush has been a disaster. Cheney says deficits don't matter but Alan Greenspan and 99% of the world's economist disagree. Remember Cheney also said that there was a strong conection between Sadam and Bin Laden.
Links that prove my points
Greenspan and deficits
Clinton -Gore Economic record
The Federal Reserve has has only raised interest rates since Bush has been in office. During Clinton they only lowered it.. So your are just flat wrong..
This guy has it right i.e. I agree with this Republican
You are just flat wrong about interest rates. Clinton and the Republican Congress by balancing the budgets created the lowest interest rates in decades. W and this "Republican" have been fiscally irresponsible. Right now the economy is good cause like my neighbors who feel fantastic when the buy stuff on their credit card only to have to pay it back with interest the U.S is doing the same thing.
I would suggest you probably live in a Red State and are a Fox News Fan. I am a fiscally conservative Republican that thinks Bush has been a disaster. Cheney says deficits don't matter but Alan Greenspan and 99% of the world's economist disagree. Remember Cheney also said that there was a strong conection between Sadam and Bin Laden.
Links that prove my points
Greenspan and deficits
Clinton -Gore Economic record
The Federal Reserve has has only raised interest rates since Bush has been in office. During Clinton they only lowered it.. So your are just flat wrong..
This guy has it right i.e. I agree with this Republican
Although I do live in a very red state (Alabama-retired military) I come from the bluest of blue states, Rhode Island. As far as being a Fox news fan, I think they're all full of [email protected]#t. Every news show has a bias one way or the other. I read to get most of my news, from the LA Times to the NY Post. Check out the site below which shows the history of the Prime and you'll see it went up and down with Clinton as well as with Bush. Like I said earlier, I think Bush has been spending like a drunken sailor on his first shore leave.
http://mortgage-x.com/general/indexes/prime.asp
http://mortgage-x.com/general/indexes/prime.asp
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Oh, for *****'s sake Kpaul Cook! Give it a ***** 'n rest all ***** 'n-ready! I mean, FUUUUCK!!
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4,129 Posts
I sell motorcycle insurance as most of you know. 1- there are many companies that have provisions in policies that clearly state if you bike is a total loss and the bike is less than one year old from date of purchase they WILL replace it at full retail. So ask your agent or company if you don't know. 2- If you can: ask if there is replacement coverage offered> Dairyland and American Modern Insurance both offer this on all new bike purchases and it is effective for the first two or three years of ownership. 3- Because I also work as the Finance Mgr at a Ducati shop I would ALWAYS suggest purchasing GAP coverage if you put less than 20% down on a bike.
People fail to realize that GAP, Service contracts, and Tire and Wheel/Roadside asst. programs are cancellable. Just like an insurance policy, they can't keep what they don't earn. After about the third year on a typical loan your value will usually equalize and the actual cash value and the loan will flip so the value is higher than the loan. So cancel it. People forget about that all the time. The average GAP is sold for between $300-$500. If it's possible pay for it in cash or credit card. There is no reason to pay interest for 60 or more months or that GAP will cost you $150 or more dollars during the length of the loan over the true cost.
My suggestion is buy on all new purchases if you put little or no money down. Otherwise hash it out with your insurace company an see how much fun you have. This is coming from a guy that has to be stuck in the middle of claims all the time. Just remember this: We're just agents. Not the Insurance company, not the claims adjuster. We (the agents) catch sh*t all the time for stuff we have absolutely no control over. I will try my best to make sure my customers are happy but the companies make it pretty tough on us, too. We just sell and service.
People fail to realize that GAP, Service contracts, and Tire and Wheel/Roadside asst. programs are cancellable. Just like an insurance policy, they can't keep what they don't earn. After about the third year on a typical loan your value will usually equalize and the actual cash value and the loan will flip so the value is higher than the loan. So cancel it. People forget about that all the time. The average GAP is sold for between $300-$500. If it's possible pay for it in cash or credit card. There is no reason to pay interest for 60 or more months or that GAP will cost you $150 or more dollars during the length of the loan over the true cost.
My suggestion is buy on all new purchases if you put little or no money down. Otherwise hash it out with your insurace company an see how much fun you have. This is coming from a guy that has to be stuck in the middle of claims all the time. Just remember this: We're just agents. Not the Insurance company, not the claims adjuster. We (the agents) catch sh*t all the time for stuff we have absolutely no control over. I will try my best to make sure my customers are happy but the companies make it pretty tough on us, too. We just sell and service.
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10,900 Posts
You're a pathological liar KP. The Fed raised interest rates numerous times during the 90s.
Why don't you click on the Federal Reserve's website and see for yourself?
Of course I already provided a link for you many moons ago and you countered it with a link to a homemade website by a dorky real estate agent.
Your "facts and data'" are as accurate as a Michael Moore movie.
Oh, I just returned from a ski weekend in AZ. That $2.80 a gallon gas was below $2.50 there until I crossed the border into Blue State CA where it was over 3 bucks.
I think I'll start forwarding your lunatic rantings to Boeing just for fun.
Why don't you click on the Federal Reserve's website and see for yourself?
Of course I already provided a link for you many moons ago and you countered it with a link to a homemade website by a dorky real estate agent.
Your "facts and data'" are as accurate as a Michael Moore movie.
Oh, I just returned from a ski weekend in AZ. That $2.80 a gallon gas was below $2.50 there until I crossed the border into Blue State CA where it was over 3 bucks.
I think I'll start forwarding your lunatic rantings to Boeing just for fun.
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