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:
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Transmission …….………..$3,084
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Air Conditioning…………..$1,217
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Timing Belt…………...……...$802
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Front Brakes…………...……$931
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Seals and Gaskets…….… $1,050
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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.
* MMP is considered insurance coverage in some states.
Guaranteed Asset Protection (GAP) 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
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You originally purchased a vehicle for $25,500 and still owe $23,000. 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 $3,000.00. Where does that leave you?
With GAP with PowerBuy, the remaining loan balance of $3000 is covered and you may be provided with $1000 towards the financing of your replacement vehicle plus an additional benefit. Based on the calculated depreciation of the vehicle, you may also receive up to $2500 towards the financing of your new vehicle
Without GAP, you would pay out of pocket to cover the remaining $3,000 loan balance.
Your loan balance...........................................................$23,000
Your insurance company pays.......................................... $20,000
Loan balance (out-of-pocket expense)….............................$3,000
With GAP with PowerBuy, you receive an additional benefit of the Depreciation suffered with a loss.
Purchase price of the vehicle...........................................$25,500
Minus the ACV and GAP benefit.......................................$23,000
Depreciation Suffered = PowerBuy Benefit.......................$2,500
GAP benefit..................................................................$3,000
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.