The following post originally appeared on our RoadLoans blog, The Open Road.
Recently, my friend Susan visited RoadLoans.com to obtain financing to purchase a vehicle.
She called me one night to share her experience, providing great reviews on the service she received. But she also wanted my opinion on the “GAP” insurance that was offered by one of my loan specialists.
Susan is a very thrifty and budget-minded person who watches her finances closely. I know that she does not have extra money lying around to cover unexpected expenses. After all, Susan is a single mother who has two children in college and money is tight.
My goal was to share the value of GAP (guaranteed asset protection) and provide an explanation that she would understand. I told her GAP is like medical insurance – you don’t need it every day. But what if something happens to you and you need to go to the doctor? What if you have to be admitted to the hospital? Needless to say, this can cause huge financial difficulties if you don’t have insurance.
The same is true if your car is totaled in an accident or stolen – or involved in a hurricane. Why mention a hurricane? Susan lives in Baton Rouge, Louisiana, so she can’t take anything for granted.
I asked her what she would do if she owed thousands of dollars on a car she couldn’t drive anymore.
Susan told me not to worry, that she has car insurance. But I explained that the insurance company will only cover the current value of the vehicle which, in the first three to four years of financing, could be a lot less than she owes. I explained to Susan she would be responsible for the difference before she would be able to obtain financing for a new car. This could mean having to cut into the savings she has set aside for her daughter’s college fund. Or even worse, by owing money on a car that has been totaled, she would not have a way to work which could place her job in jeopardy.
With GAP, I explained, she would have peace of mind knowing the she would be covered for the misfortune and would be able to shop for a new car.
I also advised that she could roll the cost of GAP into her financing. With that, she was sold!
It’s a wonderful feeling to know that RoadLoans offers a product like GAP to ensure our customers can get back on the road quickly and protect their credit! Check out the GAP coverage on your RoadLoans approval page.
Bridge the gap with S-Guard GAP when you buy a new or used vehicle. It will even cover up to $500 of your primary insurance carrier’s deductible, so why risk your financial security? Protect your investment – and your credit – with S-Guard GAP. Ask your sales representative for details.
– By Dedra Hargis