Should I Get Gap Insurance on a Pre-Owned Cadillac Car?

Are you ready to purchase a pre-owned Cadillac car but can’t decide if gap insurance is worth it? Allow the team at Zeigler Cadillac of Lincolnwood to go over how gap insurance works and what it covers so you can make an informed decision.

What is Gap Insurance and How it Works

Guaranteed Asset Protection, or gap insurance, is meant to protect drivers that are still making loan or lease payments on a vehicle that has been stolen or totaled. Because of how rapidly new vehicles depreciate (around 10% the moment you drive off the lot and up to 20% in the first year), the cost of your loan or lease will always be higher than what the vehicle is currently worth.

This can be bad if your vehicle gets stolen or totaled while you’re still making payments on it. Your insurance will only cover what the vehicle is currently worth rather than the cost of the loan or lease. That means, without gap insurance, you would need to pay the difference between the vehicle’s current worth and how much you owe on it.

Do I Need to Gap Insurance?

You’re not obligated to purchase gap insurance for your car, but for some drivers, it is recommended. Like previously mentioned, gap insurance can be extremely advantageous for those that plan to lease or take out a loan for a new vehicle.

But what about pre-owned vehicles? Gap insurance is most helpful when you’re likely to end up owing more than the value of your car, which is a possibility with pre-owned vehicles as well. You should consider getting gap insurance for a pre-owned Cadillac car if you:

• Have an especially long finance term
• Lease a car
• Take out a loan for more than the value of the car
• Finance a car without a 20% down payment

Finance Pre-Owned Cadillac Cars in Lincolnwood, IL

The best place to purchase a pre-owned Cadillac car is at Zeigler Cadillac of Lincolnwood. After you’ve selected a vehicle from our inventory, we can help you go over all your Cadillac financing options and discuss whether or not gap insurance is right for you. Visit us today to learn more!