Guaranteed Asset Protection (GAP) helps borrowers and lenders avoid financial loss by waiving all or a portion of the deficiency between a borrower’s payoff amount on their auto loan and the determined actual cash value of a vehicle in the event that a vehicle is totaled or stolen, up to a certain LTV maximum, less exclusions or limitations that may apply. This is a voluntary, non-insurance product. GAP Advantage also provides you with a $1,000 credit towards the financing of a replacement vehicle financed with our financial institution!
How does GAP work?
The actual cash value of your vehicle as determined by your primary insurance carrier could be less than the actual balance you owe on your loan. In the event of a total loss or theft, GAP waives the difference between your outstanding loan balance and the actual cash value (ACV) of the vehicle up to the maximum LTV %. GAP may also cover up to $1,000 of your deductible if there is a “gap” after the primary insurance settlement is paid. The deductible is covered as part of the deficiency balance settlement.*
REAL-WORLD EXAMPLE:
Your loan balance is: $15,000
Your insurance company settlement is: $10,000
– Based on your vehicle’s market value: $11,000
– Less your insurance deductible: $1,000
Loan balance remaining without protection: $5,000
Loan balance remaining with protections: $0
PLUS $1,000 credit towards the financing of your replacement vehicle!
GAP is subject to limitations and exclusions, including but not limited to a loan-to-value (LTV) maximum. Call us at 707-443-8662 to learn more.
