GAPP - GUARANTEED AUTO PROTECTION PLUS
How Guaranteed Auto Protection Plus Works!
| Loan Balance After One Year: | $15,000 |
| Your Vehicle's Actual Cash Value: | $11,000 |
| Your Auto Insurance Deductible: | $1,000 |
| The Auto Insurance Settlement: | $10,000 |
| Member's Deficiency Balance: | $5,000 |
| Guaranteed Auto Protection Plus Pays: | $5,000 |
Without GAPP, the member would be required to pay this $5,000 in order to pay off the loan/lease balance.
During the first few years that a member owns a vehicle, the loan/lease balance can be higher than the actual cash value of the vehicle. In the case of a total loss, due to an accident or theft, the standard auto insurance policy will cover only the cash value or the market value of the vehicle, not the entire loan balance.
Guaranteed Auto Protection Plus protects your members from this financial GAP. GAPP covers the deficiency portion or the difference between the actual cash value of the vehicle and the loan/lease balance, less delinquent payments, late charges, refundable service warranty contracts and other insurance related charges.
GAPP will even cover the member's auto insurance deductible up to $1,000 (excl. Arkansas and Illinois).
Credit Union Benefits
- Protects lender from exposure on high loan-to-value ratios on automobile loans.
- Costs up to 2/3 less than comparable programs at your local auto dealer.
- Covers loan terms up to 84 months and deficiency balances up to $50,000.
- Comprehensive, online GAP software is easy and prevents administrative error.
- Reduces collection exposure while providing excellent source of fee income.