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State Farm Offers FREE GAP INSURANCE with all vehicle loans!

crystalrae151 142 January 22, 2007 at 08:22 PM in Finance (2)
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This has been around since October, and it has just hit me that this may be a pretty good find.

State Farm offers vehicle financing and refinance. You can apply even if you are not a State Farm Customer. Included with every loan is FREE total loss debt cancellation (ie: FREE GAP INSURANCE!) This is a pretty slick deal being that I have seen gap protection selling for as high as $750.00

Here is a little more info: [statefarm.com]
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27 Comments

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#2
I fuond this out recently. Definitely a great deal if you are purchasing a car!
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#3
Quote from myculito View Post :
I fuond this out recently. Definitely a great deal if you are purchasing a car!
Does it mean, I need to switch my insurance to State farm?
I just bought a new vehicle and financing with chase. Is it possible for me to change to SF? Will they give good rate?
Pls advise.
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#4
Quote from kay_jay View Post :
Does it mean, I need to switch my insurance to State farm?
I just bought a new vehicle and financing with chase. Is it possible for me to change to SF? Will they give good rate?
Pls advise.

You do not have to have State Farm Insurance to get financing. Their financing is super easy. Their rates are pretty competative. If your credit score is good, you should easily get a good rate.
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#5
Quote from kay_jay View Post :
Does it mean, I need to switch my insurance to State farm?
I just bought a new vehicle and financing with chase. Is it possible for me to change to SF? Will they give good rate?
Pls advise.
I think 99% of major insurance companies have lease /loan gap as an option. Call your insurer. Usually you can not get lease/loan gap coverage if you roll over any old loans into your new one, or the market value of the car is 20% less then what you owe (depending on the company)

-ex: 2002 ford focus, owe 8 grand, worth 2 grand Smilie Good luck finding a company to write loan gap.

Usually there are a few limitations with the insurance loan gap... but @ the dealer everything is overpriced and I don't think anyone should buy gap coverage from the dealer.
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#6
Quote from crystalrae151 View Post :

Here is a little more info: [statefarm.com]
Thanks for your reply. The above weblink doesn't talk abt the gap insurance. Can you give me the exact link? Thanks.

Where do get started. Mine is a 2007 Honda car and like to get better loan RATE with state farm. Currently I pay 6.9% with chase with my credit score of 640. Will State farm be able to beat that price? Where and how do i get to start?
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#7
My Toyota Camry is with a 2.9% interest rate and I have a 790 credit score. I wonder if State Farm can beat that rate?
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#8
Quote from Uso View Post :
My Toyota Camry is with a 2.9% interest rate and I have a 790 credit score. I wonder if State Farm can beat that rate?
i'm gonna guess no, i have my bike financed with them at 7% which is great for a used bike or a bike in general.
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#9
Your local State Farm agent can give you an idea about rates without pulling your credit.


Pretty much, total loss debt cancellation (GAP insurance) is beneficial if at any time you were to have a total loss and you owed more that what your vehicle is worth, the balance is wiped away (minus your deductible that is)

********Here's a little more food for thought...Be careful of places offering 0%, 1/9% 3.9% financing. Only a few qualify for these low rates and in order to get them, usually you give up a pretty hefty rebate. Always opt for the rebate, and your payments are lower than if you took 0% financing.
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#10
Quote from crystalrae151 View Post :
This has been around since October, and it has just hit me that this may be a pretty good find.

State Farm offers vehicle financing and refinance. You can apply even if you are not a State Farm Customer. Included with every loan is FREE total loss debt cancellation (ie: FREE GAP INSURANCE!) This is a pretty slick deal being that I have seen gap protection selling for as high as $750.00

Here is a little more info: [statefarm.com]
Hey wait a minute! Slick deal people should never need gap insurance. You should be buying cars way below retail so that the retail value never goes below the loan balance! laugh out loud
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#11
Yes, and the total amount paid, which is the only number that really matters, will be lower if you take the 0% financing. The fact that dealers and lenders can convince people to think in terms of monthly payment is the reason they offer the rebates and the only reason "GAP" insurance has any purpose. The only times "GAP" insurance ever comes into play is when a person buys more car than (s)he can afford, or doesn't understand how compounding interest works.

I wasn't going to say anything, but at the point where you started advising people to pay more significantly more over time so that they can pay less each month, I felt compelled to do so. I see at least a dozen car loan defaults being pursued legally per week, and that's just a fraction of the number in just one county. The false security of "GAP" insurance is one of the reasons for all the defaults.
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#12
Quote from Uso View Post :
My Toyota Camry is with a 2.9% interest rate and I have a 790 credit score. I wonder if State Farm can beat that rate?
No, they can't beat that. I worked for them for years and have never seen a rate that low.
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#13
Who buys a new car...........I cant afford the 5000 drive it off the lot depreciation.....
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#14
Can anyone give me a ballpark on Auto Refinancing to SF?? I have seen most companies have really high rate for Refinancing. I don't think this deal is good for people who already have new cars at high interest.
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#15
c'mon people! stop being so darn lazy.

the OP provides a link to a state farm page.
in the left column is a link for 'get rates'. while it doesnt get rates for every possible scenario, it does give you a starting point.
i would post that link here but i prefer to make the lazy go click on the link.

if this doesnt answer your question on rates, use the state farm website to find the email address or phone number of your local agent and contact them with your super specific scenario and dont waste space here.
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