A vehicle’s value depreciates rapidly, and sometimes at a faster pace than what you owe on your loan. After one year, the typical value of a new car is less than 80%; after 5 years it’s only around 40%.*
If your vehicle is stolen, damaged beyond repair, or otherwise declared a total loss, you’re still liable to pay the difference between your loan balance and what the insurance company says your car is worth. Sometimes there can be a “gap” of thousands of dollars. Purchasing GAP insurance is especially important if your down payment is small when you purchase the car.
Save hundreds of dollars when you purchase GAP (Guaranteed Asset Protection) Insurance at Central Credit Union instead of an auto dealer!
Ask about it when you apply for your loan.