Gap Insurance Is An Important Element Of Financing A Vehicle

New car buyers need to be educated on the importance of GAP insurance. GAP insurance comes into play when the person financing a car no longer has access to the car that you still owe money on. If the car was financed for $12,000, and it was rendered unusable before the end of the contract, the car buyer still owes the difference between the value of the vehicle and what you owe. It does not matter that the vehicle is no longer in service. GAP insurance covers this difference.

This coverage ensures that the lender gets their payment and does not have to report the car buyer to the credit agencies if you can't make the payment anymore. In turn, you are relieved from the burden of making payments on a car that you no longer have the ability to drive. Our financing team here at Otis Ford Inc. can assist you if you are interested in financing a new vehicle. It is best for you to look into how GAP insurance works in our area when applying to get the best possible plan.

Categories: New Inventory, Finance, News

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