If you purchase a new car and don't put any money down, a good rule of thumb is to assume your new vehicle will lose, on average, 19% the first year you own it, half of which occurs immediately after taking possession. Or if you trade-in your car and it is worth less than your loan, this creates negative equity. Both of these situations leave a “gap” between what you owe on your loan and the value of your vehicle.
If your car is declared a total loss due to accident or theft, GAP Plus Coverage is designed to waive the difference for eligible borrowers who choose to purchase during loan closing,
Benefits:![GAP_32k_on_the_lot_27_on_the_street](/assets/1/6/MainFCKEditorDimension/GAP_32k_on_the_lot_27_on_the_street.png)
- You may also receive $1,0002 towards your next auto loan, if you have an eligible GAP Plus Claim.
- Auto Deductible Reimbursement up to $500
GAP Coverage in Action
In May 2022, our member bought a brand new Lexus 350 and financed it with Healthcare Systems FCU. Unfortunately, her car was recently declared a total loss. Due to depreciation, her insurance company made a payment that was $7,800 less than current loan balance.
Fortunately, she purchased GAP Plus, so the $7,800 GAP was covered, and she received $1,000 towards her next auto loan with Healthcare Systems FCU!
Call us at 703-776-2700 to see if GAP Plus is a good fit for you.