Guaranteed Asset Protection protects you against financial loss in the event their vehicle is damaged beyond repair (totaled) or stolen and never recovered.
PowerBuy will cover the existing vehicle depreciation from the time of purchase through the date of loss after the GAP claim has been settled.
GAP WITH POWERBUY
• Protects your credit rating
• Eliminates or reduces “out of pocket” expenses for the remaining loan balance after the insurance settlement
• You are able to purchase replacement vehicle sooner because there is little or no carry-over balance
• You may purchase GAP with PowerBuy up to 1 year from effective date of loan
• Waiver may be fully refunded within 60 days of its inception if no GAP benefits have been paid
• Additional benefits are paid based on the original Purchase Price or NADA/KBB
• Available on all collateral types indicated on rate schedule
• Remains in force for the term of the loan
KEEP IN MIND
• GAP with PowerBuy may provide UP TO $5000 towards the new loan when you return to the Financial Institution for replacement financing.
• In some cases, the insurance settlement may have covered the loan balance. In this instance, you are still eligible for the calculated PowerBuy benefit.
• You can file a GAP with PowerBuy claim at any time during the loan term.
STATISTICS
• When a new car is driven off the dealer’s lot, it can depreciate 10%–15% of its value. This depreciation can be as high as 30% or more in the first year of ownership on some vehicles.
• 40% of GAP claims submitted had a remaining loan balance
LIMITATIONS
• GAP with PowerBuy will not cover any delinquent/ skipped/missed payments in excess of the maximum allowable. Note: Under the terms and conditions of the GAP with PowerBuy Waiver, a skipped payment is a payment that is not made in accordance with the payment schedule as defined in the original loan agreement and is therefore considered “unpaid”.
In the event of a claim, all delinquent/skipped/missed payments of any kind in excess of the maximum allowable will be deducted from any payable GAP benefit.
• Maximum Limit of Liability for any claim shall not exceed $50,000
• Portion of the loan at origination that exceeds 125% of MSRP (new auto, van, light truck) or 125% NADA (used auto, van, light truck). Please refer to your Financial Institution for maximums on all eligible collateral.
EXCLUSIONS
GAP with PowerBuy does not cover:
• Private Passenger Vehicles that exceed 1-Ton load capacity (Note: If vehicle is labeled over 350/3500 it is ineligible for GAP coverage)
• Any type of vehicle not currently listed in NADA/KBB
• Commercial vehicles, rental vehicles, taxi cabs, buses, limousines, salvage vehicles
• Loss occurring prior to the date of the GAP with PowerBuy policy
• Late charges, other fees or amounts that are built into or added to the loan balance after the inception date of the loan.
POWERBUY BENEFIT EXAMPLE — BASED ON DEPRECIATION
*Assuming a benefit level of $5,000 for PowerBuy:
GAP IS GREATER THAN DEPRECIATION
VEHICLE PURCHASE PRICE (OR NADA/KBB)** $20,000
LOAN BALANCE $23,000
– PRIMARY INSURANCE (ACV) SETTLEMENT $18,000
= GAP BENEFIT (LOAN BALANCE-ACV) $5,500*
VEHICLE PURCHASE PRICE (OR NADA/KBB)** $20,000
– PRIMARY INSURANCE (ACV) SETTLEMENT $18,000
=DEPRECIATION $2,000
*$5,000 WOULD GO TO THE REMAINING BALANCE OF THE GAP.
DEPRECIATION IS GREATER THAN GAP
VEHICLE PURCHASE PRICE (OR NADA/KBB)** $21,000
LOAN BALANCE $18,000
– PRIMARY INSURANCE (ACV) SETTLEMENT $16,000
= GAP BENEFIT (LOAN BALANCE-ACV) $2,000
VEHICLE PURCHASE PRICE (OR NADA/KBB)** $21,000
– PRIMARY INSURANCE (ACV) SETTLEMENT $16,000
=DEPRECIATION/POWERBUY $5,000
*$2,000 WOULD GO TO THE REMAINING BALANCE OF THE GAP, AND $3,000 TOWARDS THE REPLACEMENT VEHICLE.