WHAT IS GAP INSURANCE ?

GAP INSURANCE WILL PROTECT YOU
IN THE EVENT YOUR VEHICLE IS A
TOTAL LOSE DUE TO AN
ACCIDENT OR STOLEN AND
NOT RECOVERED.

GAP INSURANCE
PAYS THE DIFFERENCE
 BETWEEN HOW MUCH IS OWED
AT THE BANK OR LEASE COMPANY
VERSUS THE AMOUNT OF MONEY
 YOUR INSURANCE COMPANY IS
WILLING TO PAY (MARKET VALUE)

THE VEHICLE DEPRECIATES
FASTER THAN THE AMOUNT FINANCED
 OR LEASED IS BEING PAID DOWN.
THE VEHICLE IS WORTH
SUBSTANCIALLY LESS THAN
WHAT IS OWED,
THUS THE “GAP”.

ALMOST ALL LEASES
PROVIDE “GAP INSURANCE”
AT NO CHARGE

IT IS NORMALLY CONSIDERED
PART OF THE BANK FEE

FINANCE LOANS NEVER INCLUDE
GAP INSURANCE. GAP INSURANCE
MUST BE PURCHASED SEPARATELY
TO BE COVERED ON A FINANCE LOAN.

IF YOU ARE PUTTING DOWN A LARGE
DOWN PAYMENT, GAP INSURANCE
IS NOT NEEDED BECAUSE THERE
WILL NOT BE A “GAP”. IF THE
VEHICLE IS TOTALLED, BECAUSE
YOU PUT DOWN SUCH A LARGE DOWN
PAYMENT. THE AMOUNT OWED VERSUS
WHAT YOUR INSURANCE COMPANY
WILL PAY SHOULD BE VERY CLOSE.
WHICH MEANS NO GAP EXISTS.

YOU DO HOWEVER
LOSE YOUR DOWN PAYMENT.
THAT IS G.O.N.E.
GONE FOREVER!

IN MY PROFESSIONAL OPINION
IT IS BETTER TO NEVER TAKE ANY
MONEY WHATSOEVER OUT OF
YOUR POCKET FOR EITHER A LEASE
OR A FINANCE LOAN. PUT EVERYTHING INTO THE MONTHLY PAYMENT.

YES, YOUR MONTHLY PAYMENT
WILL GO UP SIGNIFICANTLY
BUT YOU STILL HAVE ALL OF
YOUR CASH IN THE BANK
EARNING COMPOUND INTEREST.

THE DOWN SIDE IS THE HIGHER
MONTHLY PAYMENT AND VERY
FEW CONSUMERS ARE WILLING
TO PAY THE HIGHER MONTHLY
PAYMENTS.

I PERSONALLY THINK
THE CONSUMER IS BETTER OFF
WITH THEIR MONEY IN THE BANK
RATHER THAN TIED UP IN A
DEPRECIATING LIABILITY.

NEVER BUY “GAP WRAP”
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