Used car values are dropping. Is your loan protected?
This is PFCU’s first installment in our new monthly segment, Money Masterclass. Each month, we will highlight various products and services offered by PFCU and how they benefit you. This month, we will discuss used car values and the use of GAP insurance.
During the last couple of years, prices for used cars skyrocketed due to supply chain challenges and labor shortages, as well as due to high consumer demand with a low interest rate environment. Now that interest rates are on the rise and car manufacturers are beginning to return to normal on new car production, used car values are starting to decline. In fact, used luxury car prices have fallen by 10.0% from May 2022 to May 2023.
That's where Guaranteed Asset Protection (GAP) comes in.
What is GAP? What is Deductible Assistance? Why is it recommended?
GAP – If your vehicle is deemed a total loss due to an accident or theft, you may wind up owing more on your loan than your auto insurance will cover. GAP insurance may reduce or even eliminate that shortfall in the event your vehicle is deemed a total loss.
Deductible Assistance – If your vehicle is damaged, but not deemed a total loss, GAP with deductible assistance may be able to relieve some of the financial burden by allowing the deductible amount to be applied to your loan when the repairs cost more than your deductible, reducing what you owe.
Want to protect your vehicle loan? Purchase GAP with Deductible Assistance today if you don't already have it!
Essential financial protection on your vehicle loan that helps you drive with confidence. Talk to the Lending Department at Platinum Federal Credit Union about how we can help protect you from sudden out-of-pocket expenses with GAP with Deductible Assistance.
Stay tuned for next month’s Money Masterclass where we will look into vehicle extended warranties/mechanical repair coverage (MRC).
Disclosure
Your purchase of MEMBERS CHOICETM Guaranteed Asset Protection (GAP), which includes deductible assistance, is optional and will not affect your loan application for credit or the terms of any credit agreement you have with us. Certain eligibility requirements, conditions, and exclusions may apply. You will receive the contract before you are required to pay for GAP. You should carefully read the contract for a full explanation of the terms. If you choose GAP, adding the GAP fee to your loan amount will increase the cost of GAP. You may cancel GAP at any time. If you cancel GAP within 90 days you will receive a full refund of any fee paid.
GAP purchase from state-chartered credit unions in FL, GA, IA, UT, VT, and WI, may be with or without a refund provision. Prices of the refundable and non-refundable products are likely to differ. If you choose a refundable product, you may cancel at any time during the loan and receive a refund of the unearned fee. GAP purchase from state-chartered credit unions in CO, MO, or SC may be canceled at any time during the loan and receive a refund of the unearned fee.
GAP purchase from state-chartered credit unions in IN may be without a refund provision. If the credit union offers a refund provision, you may cancel at any time during the loan and receive a refund of the unearned fee.
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