Guaranteed Asset Protection (GAP) Advantage with PowerBuyTM
GAP is an optional insurance policy, available for new and used vehicles, that pays the difference between how much is owed and what your insurance company pays if the car is declared a total loss or stolen. Unless you’re covered by GAP insurance, this financial shortfall, or GAP, could leave you owing thousands of dollars.
Your car’s actual value is the cost of the car when it was new minus depreciation, age, mileage, condition, etc. Since cars depreciate quickly, the amount you receive from the insurance company may be significantly less than what you owe.
Who Should Buy GAP?
GAP is primarily for those who have a 60-month (or longer) term loan, have less than 20% down, or purchased a car that has a high rate of depreciation.
GAP insurance hypothetical example:
|Loan Balance at time of loss:||$20,000|
|Value of Vehicle at time of loss:||$17,000|
|Amount Insurance Company Pays:||$17,000|
|Remaining Loan Balance:||$3,000|
|ECSFCU GAP Protection Pays:||$3,000|
Signing up for GAP is easy:
- Sign up for GAP when you apply for your vehicle loan
- GAP amount can be rolled into your monthly loan payment
- GAP is fully refundable if you cancel coverage within the first 60 days
- Guaranteed Asset Protection coverage is only $400
What is PowerBuy?
PowerBuy provides you with additional funds to finance your next vehicle with East County Schools, in addition to paying off your loan balance, after an insurance payout.
Did you Know?*
- A vehicle loses 11% of its value the second you drive it off the lot
- 15-20% is the average value a new car loses annually
*Information from Edmunds.com
Your purchase of GAP Advantage with PowerBuy is optional. Whether or not you purchase GAP Advantage with PowerBuy will not affect your application for credit or the terms of any existing credit agreement you have with the credit union. There are eligibility requirements, conditions, and exclusions that could prevent you from receiving benefits under GAP Advantage with PowerBuy. You should carefully read the contract for a full explanation of the terms.