Direct answer
It is often worth it if your down payment was less than 20%, as the car’s market value may drop below your remaining loan balance quickly after purchase.
Industry depreciation standards and vehicle financing risk assessment guidelines. For additional information about how depreciation affects auto insurance coverage, see the National Association of Insurance Commissioners‘ consumer guide on vehicle insurance.
What this means for you
It is often worth it if your down payment was less than 20%, as the car’s market value may drop below your remaining loan balance quickly after purchase.
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