Katahdin Federal Credit Union offers Gap (Guaranteed Auto Plus Protection) for members when financing a new automobile. The moment you drive your vehicle off the lot, it depreciates about 20% on average. And you can count on roughly a 15% decline in value each year for the next four years. If your vehicle is stolen or damaged, and deemed a total loss, you are responsible to pay the difference between what you owe and what your insurance company says your vehicle is worth.
GAP helps cover the difference between the actual cash value of the vehicle (primary insurance company settlement) and the outstanding loan balance at the time of loss.
GAP Plus can potentially save you thousands of dollars. The amount you owe on your vehicle and the amount it is worth can be very different. GAP Plus will assist you in covering the difference.
The “Plus” is the additional benefit of a $1,000 deduction toward your next vehicle loan at this institution, if financed within 90 days of the GAP claim settlement.
Ask a Financial Services Representative the next time you finance an auto loan!