When you purchase a new vehicle, it starts to depreciate the moment it leaves the lot. In the event your vehicle is stolen, accidently damaged beyond repair, or declared a total loss by your insurance company, they typically pay the actual cash value of the vehicle at the time of loss – not what you actually still owe on your loan. Frustrating right?
GAP can help cover the difference between what you owe on your loan and what your car is worth.
How GAP Works
Loan Amount = $36,000
Term = 72 Months
Loss Date = 36 Months
Loan/Lease Payoff at Time of Loss ....... $18,000
Insurance Settlement**.......................... $14,000
Potential Out-of-Pocket Expense ...........($4,000)
With GAP Protection ............................$0
**Actual Cash Value of Vehicle
You should consider GAP coverage if:
· If you put down a low down payment
· If you traded in a vehicle and are rolling over negative equity
· If you leased your vehicle
· If your financing your vehicle for longer than 5 years
You may not be able to void every road hazard, but you can protect yourself and eliminate the expense of the repair.
Dimension Service Corporation
5500 Frantz Road, Suite 120, Dublin, OH 43017
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