This is a personal question. But, from a finance point of view banks and
finance companies typically do not allow GAP to be written on a vehicle
finance contract if the amount to finance is less than 80% of the
vehicles value. This means that you had 20 to 30% down or an equivalent
amount in equity in your trade in.
Even with this being said, for people who drive more miles year than the 15,000 miles a year norm, a case can be made for GAP as their vehicles will depreciated fast than normal. In this case, at your request for GAP, a dealer can contact the finance company and request an override on their amount to finance GAP policy minimum.
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