GAP Insurance

There are so many factors to consider when purchasing a car. From the paint color and features to the monthly payments and service plans, it is important to make sure you make the right choices for your investments. One way to protect your vehicle is to purchase Guaranteed Auto Protection (GAP) insurance. Car insurance is required for any vehicle but GAP insurance ensures your full investment is returned in case of an accident, theft, or other form of loss.
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GAP insurance is the perfect choice for those who are buying a vehicle with significant value, purchasing or leasing a brand new vehicle, utilizing a long-term finance package, driving over 15,000 miles annually, or putting less than 20% down. Many lease agreements require GAP insurance in their policy. These policies are available through our finance center as well as most major insurance companies. Because they are intended to cover the difference between your loan and car’s value, these policies are only necessary to use until your vehicle’s depreciated value is equal or less than your loan amount.

Once you drive your vehicle off of our lot, it begins to depreciate.  The sad reality is that the adventures you take in your car usually contribute to its loss in value.  Within the first year of ownership, new cars will depreciate up to 19%. From there, each year you will lose 15%-25% of the car’s value.  If you were to buy a car for $30,000 today and wreck it in a few months, its value could be as low as $26,000. Even if you had been making monthly payments you could still owe more than the car is worth for your loan. At that point, you would be considered “upside-down” on the loan meaning you’re paying for more than the value. GAP insurance covers the difference between the depreciated value of a vehicle and the amount of its loan. Without this coverage, many people face refinancing, additional loans, or the financial strain of making two car payments.

Visit our Finance Center today to find out more about our loan options and coverage packages! 

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