Direct answer
Yes, it is often worth it because a low down payment means your loan balance likely exceeds the car’s actual cash value for the first several years of ownership.
Financial advisory publications regarding auto loan depreciation and total loss claim outcomes. For additional information about how depreciation affects total loss settlements, see the Insurance Information Institute‘s guide on gap insurance.
What this means for you
Yes, it is often worth it because a low down payment means your loan balance likely exceeds the car’s actual cash value for the first several years of ownership.
FARMER STOCKMAN
Protecting Your Future with Confidence
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This page is informational and not a coverage guarantee or quote.
