Totaled 4xe?

[Capricorn]

Here is a tip on gap insurance. Always get gap insurance when financing a vehicle. But cancel gap after a year/year and a half if enough payments have been made and the loan payoff amount has decreased to less than or equal to the value of the vehicle. The pro rated gap insurance you paid will go back as principle to the loan. With this approach, gap covers the investment if something happens early on.

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[martoaj]

Yeah, I'll pass. The interest you are getting for that money in your bank account isn't even a small fraction of what you are paying out in interest on the loan. Whether it was down payment or the bank's money, whatever the difference is between what insurance says it is worth now and what you paid for it is coming out of your pocket, one way or another. Insurance companies don't base their values on what you owe on your vehicle.

It's not about making interest off of the money you hold onto. At all. It's about limiting your financial liability in the event of a crash. Never put money down on a lease! You always want to limit your liability, and that means walking out of there with as close to $0 down as possible. Things like this don't happen frequently, but they do happen, and even when it's not your fault, you still get screwed if you put money into a lease "down payment". Yes you can get gap insurance, but you can also just ... not put any money down, and also not pay for gap insurance. Let the leasing bank take the liability, don't take it on yourself.

Things are obviously different in the case of a purchase. Whether you pay it up front or over time doesn't make a difference. But in the case of a lease, you lose 100% of what you've already put into the car at the time of the crash. I know this is a thread about a crash and not a financial advice, but folks, if you need to put money down up front on a lease to make it a comfortable payment, you're simply masking a bad lease deal.

OP, Hope everyone involved is OK! To me, there's likely considerable frame damage there, and on top of the engine work, this is probably a total. That's going to be the case whether it's a 4xe or not. Front-end damage just gets a lot more expensive than if you were rear-ended.

 

[Ten North Prez]

It's not about making interest off of the money you hold onto. At all. It's about limiting your financial liability in the event of a crash. Never put money down on a lease! You always want to limit your liability, and that means walking out of there with as close to $0 down as possible. Things like this don't happen frequently, but they do happen, and even when it's not your fault, you still get screwed if you put money into a lease "down payment". Yes you can get gap insurance, but you can also just ... not put any money down, and also not pay for gap insurance. Let the leasing bank take the liability, don't take it on yourself.

Things are obviously different in the case of a purchase. Whether you pay it up front or over time doesn't make a difference. But in the case of a lease, you lose 100% of what you've already put into the car at the time of the crash. I know this is a thread about a crash and not a financial advice, but folks, if you need to put money down up front on a lease to make it a comfortable payment, you're simply masking a bad lease deal.

OP, Hope everyone involved is OK! To me, there's likely considerable frame damage there, and on top of the engine work, this is probably a total. That's going to be the case whether it's a 4xe or not. Front-end damage just gets a lot more expensive than if you were rear-ended.

I don't disagree. The lease portion of the equation wasn't clear until later in the thread. Once I learned that I better understood what some others had alluded to. I believe the OP also stated that they had GAP insurance as well, but I get your point.

 

[kah.mun.rah]

Am I the only one surprised that the Mopar glass windshield survived?

 

[AcesandEights]

Probably Gorilla Glass!

 

[Maverick909]

That's totaled. frame rails are bent. 98% the time they will total these

 

[JSFoster75]

The problem with Gap insurance is that it more than likely means you overpaid for the vehicle, or you had negative equity rolled over from your trade... If you are willing to fork out the extra cash for the premium, go for it, but dealerships will often try to sell you Gap insurance even if it isn't needed...

I traded with $13,000 positive equity and they still tried to sell me Gap Insurance... It's just a money racket for the dealers, there are some that need it, but not everyone... Just decide whether or not you need it before you sign on the dotted line, everyone's financial situation is different.

 

[Bleda2002]

Yeah, I'll pass. The interest you are getting for that money in your bank account isn't even a small fraction of what you are paying out in interest on the loan. Whether it was down payment or the bank's money, whatever the difference is between what insurance says it is worth now and what you paid for it is coming out of your pocket, one way or another. Insurance companies don't base their values on what you owe on your vehicle.

Depends on the interest rate you get for the car. I'm under 2%, put down as little as possible as thats as close to free money as you can get. If it was 8% i'd think a little harder, but even thats not high if you have any credit card or other debt that could use the money instead.

 

[Ten North Prez]

Depends on the interest rate you get for the car. I'm under 2%, put down as little as possible as thats as close to free money as you can get. If it was 8% i'd think a little harder, but even thats not high if you have any credit card or other debt that could use the money instead.

My comment was specifically in response to this statement: " You are better off saving the money in an account and using it to make the higher payment. "
In the event of a loan, not a lease, I stand firmly by what I said. Unless you have many millions in the bank (in which case it is doubtful you are barrowing for a Jeep anyway) you aren't making close to even the 2% interest you are being charged for what you are barrowing. I was not speaking in reference to anyone's individual financial status, other loans they may be carrying simultaneously, putting the money in futures, money they owe their brother, the 20 dollars they have coming from Aunt Susan for their birthday, etc...
Keeping money in the bank to pay for the loan you didn't put that same money down on for the loan originally, is financially a bad decision.

 

[Bleda2002]

My comment was specifically in response to this statement: " You are better off saving the money in an account and using it to make the higher payment. "
In the event of a loan, not a lease, I stand firmly by what I said. Unless you have many millions in the bank (in which case it is doubtful you are barrowing for a Jeep anyway) you aren't making close to even the 2% interest you are being charged for what you are barrowing. I was not speaking in reference to anyone's individual financial status, other loans they may be carrying simultaneously, putting the money in futures, money they owe their brother, the 20 dollars they have coming from Aunt Susan for their birthday, etc...
Keeping money in the bank to pay for the loan you didn't put that same money down on for the loan originally, is financially a bad decision.

That's fair and true. I guess I just assumed someone would be smart enough to make sure their money is working for them not just sitting in a checking account.

 

[Xorak]

Here is a tip on gap insurance. Always get gap insurance when financing a vehicle. But cancel gap after a year/year and a half if enough payments have been made and the loan payoff amount has decreased to less than or equal to the value of the vehicle. The pro rated gap insurance you paid will go back as principle to the loan. With this approach, gap covers the investment if something happens early on.

Assuming $0 down.

If you've put enough down to cover the depreciation for driving it off the lot, you don't need gap because there won't be a gap between actual wholesale cash value and what you owe.

 

[Ten North Prez]

That's fair and true. I guess I just assumed someone would be smart enough to make sure their money is working for them not just sitting in a checking account.

I knew a guy one time (ATTENDING COLLEGE!!) who thought he'd get rich by taking out a loan and using the money to buy CD's. I am never surprised anymore about the things people do with their money. I do want to note however, that I think the person that made the comment I was responding to that started this mess was assuming a lease, and I assumed a loan. If that is the case, I don't wholly disagree with what he said, and my response was unwarranted.

 

[entropy]

tots.

 

[John VonJeep]

I'd highly recommend you try to find a replacement Jeep with the Advanced Safety Package. If yours had this option, you likely would not have ever had to post this question in the first place because the accident would have been prevented from happening altogether.

 

[Midnight Rider]

This is my JT, totaled last November. Frame & body mount bolts bent amongst other damage, but the windshield survived Guy ran a stop sign I t-boned him at 35mph. Walked away with cuts & bruises on my hands from the airbag. Counted my blessings that day.

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