The value of a vehicle declines rapidly during the first several years of ownership, and with loan terms steadily increasing and down payments decreasing, the loan payoff amortizes in a slower manner throughout the term of the contract.
Maintaining full coverage insurance does not guarantee that the borrower is fully protected against financial loss. If a vehicle is stolen, accidentally damaged beyond repair, or otherwise declared a total loss, the borrower’s insurance coverage will only cover the actual cash value of the vehicle. The borrower remains liable for the difference between the insurance settlement and loan balance. This deficiency, or “GAP”, can easily amount to thousands of dollars.
Our program protects the lender and the borrower from this deficiency. GAP covers the difference between the insurance settlement and the loan payoff, providing valuable protection against potential out-of-pocket dollars in the event of an insurance shortfall. In most states, even the borrower’s insurance deductible is covered up to $1,000.
GAP Program benefits the lender by:
GAP Plus is an option that delivers an additional borrower benefit by providing a discount allowance – many times as high as $1,000 – toward the purchase and financing of a replacement vehicle, as long as the replacement vehicle is financed with the same lender. GAP Plus is not available in all states.
Timely and comprehensive reports are an integral part of our ongoing communication with you. We can easily generate custom reports, drawing from the extensive information in our database.
Kistler Agency LLC
470-662-9210 | 470-507-1089 | tkistler@kistleragency.com
Atlanta Georgia
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