Purchasing a used Chevy car here at Randy Wise Chevrolet is an excellent way to get behind the wheel of an exciting and feature-filled car without breaking the bank. Our used car showroom is home to a wide variety of family-friendly SUVs, fuel-efficient sedans, and tough and powerful trucks, making it easy to find a used car that fits your lifestyle. One question that we frequently receive regards GAP insurance on used cars. Our Chevy finance experts are happy to explain what this is and whether you need it.
What is GAP Insurance?
GAP insurance, which stands for Guaranteed Asset Protection, becomes relevant when your auto loan balance is higher than the current market value of your vehicle. If your car is stolen or totaled, a standard insurance policy will only pay out the actual cash value at that moment. Without GAP coverage, you would potentially be responsible for paying the difference between cash value and replacement value out of your own pocket. The GAP insurance ensures that a total loss doesn’t leave you in debt.
When Should You Consider GAP Coverage?
Not every pre-owned Chevy purchase requires GAP insurance, but it is beneficial in a few specific situations. If you are “underwater” on your loan from day one, GAP insurance is highly recommended. You should also consider it if you rolled negative equity from a previous vehicle into your new loan. Two additional situations where GAP insurance would be beneficial are if you made a down payment of less than 20 percent and if you chose a loan term of 60 months or longer.
Shop for a Used Chevy Car in Flint, MI
Our Flint, MI Chevy dealership has a used Chevy car for every type of driver. The team of Chevy finance professionals at Randy Wise Chevrolet is ready to review your loan and help make a recommendation about GAP insurance. Visit us today!
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