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automotive
protect your investments
This forum was created as an educational resource that empowers you to make the most informed decisions.
We will discuss the different types of protections you should consider if you are investing in a automobile purchase and why they are vitally important.
WHAT IS GAP INSURANCE = Guaranteed Asset Protection
Your car insurance company is only legally required to pay roughly 70% of the market value of the car when it is totaled. They have no responsibility to pay off your car loan. This is also why automotive lien-holders use anything above 70% loan to value as their guidelines for GAP insurance being offered.
What does this mean? What you owe your lien-holder = interest (accrued daily), taxes, fees, and any protections you may have added to secure your vehicle investment along with the remaining 30% of the value of your vehicle, is not your car insurance companies financial responsibility. Meaning your auto insurance company is not required to pay off your car loan. Which means you may be left with a GAP of thousands of dollars you will be required to pay out of pocket to your lien-holder on a totaled car you can no longer drive and no longer have.
Our Gap insurance covers up to $1,000 of your deductible and up to a $50,000 GAP between what you owe and what the insurance company will pay, should your car be totaled.
All leases in Georgia and most other states; along with some lien-holders actually require GAP as a part of the contract to protect themselves. Because without GAP insurance, people aren't likely to keep making car payments on a vehicle that is totaled and in the junk yard.
Customers who do not have GAP insurance: On average are responsible for a GAP on a totaled car of roughly $5,000, plus the out of pocket expense of their car insurance deductible which is another $500-$1,000.
BENEFITS:
In addition to protecting you from the unexpected out of pocket expense of thousands of dollars, and covering your deductible; GAP is partially refundable if you pay off your car early or you trade/sell your car. Please provide us with a pay off letter from your lender, the bill of sale showing mileage and a written request to cancel your GAP with the reason ie: paid off car/no longer owns car and typically within 45-60 days you will receive a check for the prorated refund. Please note if you have moved since purchasing your car, please provide an updated address for your check to be mailed to.
Where you can purchase GAP Insurance?
True GAP insurance can only be purchased through the lien-holder/selling dealer. Auto Insurance companies offer a GAP “like” product that typically has a $2,000 max limit of liability and does not cover your deductible. But remember if the insurance company would pay off your car should it be totaled, GAP would not be required to protect yourself. Thus buying an inferior faux protection from the company you need to be protected from, exposes you to unnecessary personal liability and frankly doesn't make much sense.
#1 | GAP INSURANCE
#2| WARRANTY
Why Protect Your Car With A Warranty?
You are making a significant investment, why would you not protect your investment?
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The average vehicle has 30,000 parts, 2,000 of which are in the engine alone. Even by taking amazing care of a car, getting all the manufactured scheduled maintenance, these parts will fail over time for a variety of reasons. Most of which are not preventable, which is why the manufacture only warranties the cars they build, for a limited time. They don't want to be liable for the future eventuality they know is coming.
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Mechanical failure of some kind is not an “if” but a “when”. How are you going to handle the costs of repairs when they inevitably arise?
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One of the main benefits of protecting your vehicle with a warranty, is the ability it provides you; to invest a small amount today to prevent you from having to spend much more later. When comparing the little bit you invest monthly to a $6,500 plus repair, there is really no contest.
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If you can purchase a warranty that costs less than you would need to spend if you would have to pay out of pocket for repairs then, you have already won by saving money and protecting your investment simultaneously.
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Each warranty offered is rated (quoted) vin specific, to ensure the correct coverage's are in place to protect your specific car. All warranty terms begin from the date of purchase /mileage at the time you purchase your car.
OTHER WARRANTY BENEFITS:
You will never waste your money. Our warranties also will provide a prorated refund if you sell/trade or total your car before the term of your warranty expires. Please simply reach out to us with proof of the miles at the time of total loss or sale/trade of the vehicle and provide us with a pay off letter. This allows us to issue any prorated refund proceeds directly to you vs your lien-holder.
If you are a certified mechanic, you will be able to use this warranty to pay yourself to work on your own car as well as save on the now inflated cost of parts. Even if you work on cars recreation-ally, this warranty will help remove some of the financial and physical burden involved with maintaining your investment now and in the future.
Road side assistance comes with your extended warranty at no additional cost, outside of
your deductible.
Rental Car reimbursement is also included for covered repairs for as long as the vehicle is
rented from a certified rental car location. *Ask your Finance Manager for
details/exclusions.
#3 | MAINTENANCE
This is a highly under rated add, that simplifies life significantly. When buying a new or certified pre owned car, you will typically be given the option to purchase pre-paid maintenance. This is usually worth the money depending on what you type of car you are buying and the expense of upkeep. For example: Mercedes, BMW, Audi, Porsche, or even Lexus you will can something in the neighborhood $800 plus for just one 30,000 mile service. If you can spend