For most used car buyers, gap insurance is unnecessary, but it becomes a critical financial safety net if you are "upside down" on your loan—meaning you owe more than the car's current market value. While used cars depreciate more slowly than new ones (roughly 25% vs. 60% over three years), high-risk loan structures can still leave you with a multi-thousand-dollar debt if the vehicle is totaled or stolen.
: You rolled debt from a previous car loan into your new one. should i buy gap insurance on a used car
: You put down less than 20% of the purchase price. For most used car buyers, gap insurance is