DO I NEED GAP INSURANCE
ON A RETAIL FINANCE LOAN ?

THAT DEPENDS ON THE AMOUNT
OF MONEY YOU PUT DOWN AS
A DOWN PAYMENT.

IF YOU PUT DOWN A VERY LARGE
DOWN PAYMENT THERE WOULD BE
NO NEED FOR GAP INSURANCE.

WHY NOT ?
BECAUSE IF THERE IS A TOTAL
LOSS, THERE WILL NOT BE A GAP.

THE “GAP” IS THE DIFFERENCE IN
THE AMOUNT OF MONEY BETWEEN
HOW MUCH YOUR INSURANCE
COMPANY AGREES TO PAY AS
THE MARKET VALUE OF YOUR
VEHICLE VERSUS HOW MUCH IS
STILL OWED AT THE BANK
OR LEASING COMPANY.

BECAUSE OF YOUR LARGE DOWN
PAYMENT THE AMOUNT OF MONEY
OWED IS MUCH LESS. THE RESULT
IS THERE IS NO GAP.

YOU ALSO LOSE ALL OF YOUR
DOWN PAYMENT MONEY.

IN MY PROFESSIONAL OPINION
ALL CONSUMERS SHOULD NEVER
PUT ANY MONEY DOWN ON EITHER
A LEASE OR A RETAIL FINANCE LOAN.
ALWAYS BUY GAP INSURANCE TO
PROTECT YOUR INVESTMENT ON A
RETAIL FINANCE LOAN.