Guaranteed Asset Protection (GAP) Advantage with PowerBuy Overview
Did you know that if your new vehicle is totaled, or stolen and not recovered, your insurance may not pay off the total amount owed? In most cases, your insurance will fall short of covering the full balance of your auto loan at the time of loss, leaving a substantial amount of the loan balance for you to cover. GAP with PowerBuy™ may pay up to the remaining balance of your auto loan after an insurance payout and provide you with additional funds to finance your next vehicle with us.
You need more than insurance to protect your investment
- In fact, if the average new car buyer has their vehicle declared a total loss because it was stolen and not recovered, or damaged beyond repair, they could still owe thousands of dollars after the insurance settlement.
Protect your investment with Guaranteed Asset Protection (GAP) with PowerBuy*
- GAP makes up the difference between what insurance covers and the amount you owe in most cases. So, instead of paying off a substantial loan balance before you can even think about shopping for a new vehicle, you could be free and clear..
- As added benefits, PowerBuy will help you get back on the road more quickly by providing additional funds towards the new vehicle loan based on the calculated depreciation of your totaled vehicle from the time of purchase and after the insurance settlement when you finance a replacement vehicle with us. By adding GAP with PowerBuy, you put yourself in a better financial position in time of need.
How it works
You originally purchased a vehicle for $24,500 and still owe $23,500. You have an unfortunate accident and the vehicle is totaled. The insurance company settles with you for $20,000 which leaves a loan balance of $3,500. Where does this leave you?
With GAP Advantage with PowerBuy, the remaining loan balance of $3,500 is covered and you may be provided with $1,000 towards the financing of your replacement vehicle plus an additional depreciation benefit upon returning to the credit union to finance your replacement vehicle
For Example:
GAP Claim: PowerBuy Claim:
Your Loan Balance: $23,500 Your Purchase Price: $24,500
Your Insurance Pays: $20,000 OR Your Insurance Pays: $20,000
GAP Claim: $3,500 PowerBuy Claim: $4,500
In this example, the total benefit available is $4,500.
- $3500 would be applied to your original loan (leaving a PowerBuy benefit balance of $1000).
- Upon Returning to finance your replacement note, the remaining $1,000 would be applied toward your next loan.
- Plus! You will also receive your additional $1,000 GAP Advantage Benefit.
GAP benefit..................................................................$3,500
PowerBuy Benefit........................................................$1,000
GAP Advantage Benefit...............................................$1,000
Total Benefit to the Borrower.....................................$5,500
The purchase of GAP is optional. Whether or not you purchase GAP will not affect your application for credit or the terms of any existing credit agreement you have with our institution. There are eligibility requirements, conditions, and exclusions that could prevent you from receiving benefits under GAP Advantage. You should carefully read the contract for a full explanation of the terms.
Skipped or missed payments, late charges, refundable service warranty contracts, other insurance-related products, and interest charged after the date of loss will be deducted from the GAP Advantage settlement.
*Vehicle must be financed at your financial institution to be eligible for the purchase of GAP.
Major Mechanical Protection (MMP) Overview
You don’t need a new car to get new car peace of mind
The average new car is out of warranty in just two and a half years, and as time goes on, the likelihood of mechanical failure on your vehicle is inevitable. Advanced electronics, complex systems, and rising labor costs mean that a repair that might have cost hundreds of dollars a few years ago may now cost you thousands. Below are some typical cost examples:
-
Transmission …….………..$3,084
-
Air Conditioning…………..$1,217
-
Timing Belt…………...…...$802
-
Front Brakes…………..……$931
-
Seals and Gaskets……..… $1,050
-
Engine…………………….....$7,066
With Major Mechanical Protection (MMP), you can protect yourself against these expensive repairs
Plans are available for most new and used domestic and imported vehicles, and MMP is affordable – the total cost of MMP is often far less than the cost of a single repair! Having this coverage extends the life of your vehicle and your budget. Pay for MMP once, and in most cases you will not have to pay anything more than a small deductible should a breakdown occur.
The best time to invest in a mechanical repair program is when you first buy your vehicle. So before you commit to any other program, compare it to our MMP. We believe you will find this program to be the value-packed winner!
The purchase of MMP is optional. Whether or not you purchase MMP will not affect your application for credit or the terms of any existing credit agreement you have with our institution. There are eligibility requirements, conditions, and exclusions that could prevent you from receiving benefits under MMP. You should carefully read the contract for a full explanation of the terms.