GAP = Guaranteed Asset Protections Plus
- What is it? It’s basically an insurance to help protect your vehicle loan. Many times primary auto insurance settlements don’t pay off your loan balance. When you buy a new or used vehicle, there’s no way to know if it will be stolen or totaled in an accident. With GAP Plus, you’re protecting your vehicle investment against a possible financial loss.
- How does it work? The fee can be included with your monthly payments or made separately by cash, check, charge or possibly electronic funds transfer. If there’s a difference between what you owe on your loan and the value of your vehicle, GAP Plus will help pay the difference based on the terms of your member agreement. By taking a few simple steps while signing your loan paperwork, you’re helping take responsibility for your financial future. Your CSCU loan officer can show you how. You can cancel within 90 days for a full refund.
- Why is it valuable? New and used vehicles often depreciate rapidly and vehicle loans are typically getting longer in terms. There may be a point where you owe more than it’s worth. That’s where GAP Plus can kick in. GAP Plus will help cancel the difference between the primary insurance settlement and what you may still owe. In addition, if your vehicle is stolen or totaled in an accident, it will cancel $1,000 of your next loan with your credit union when you purchase a replacement vehicle within 60 days of your primary insurance settlement.