Purchasing a pre-owned car is a great way to upgrade your daily drive while staying within your budget. As you browse our selection of used cars in Wilkes-Barre, PA, at one of the MotorWorld | MileOne Autogroup dealerships, you might wonder if adding Guaranteed Asset Protection, or GAP, insurance is necessary. Our friendly finance teams are dedicated to helping you understand if this extra coverage is worth it for your individual needs.
How Does GAP Coverage Work?
Standard auto insurance policies are designed to pay out the current market value of your vehicle if it is totaled in an accident or stolen. Because all automobiles naturally depreciate over time, that market value is often less than the remaining balance on your auto loan. GAP insurance is designed to cover that “gap,” which ensures that you aren’t left making monthly payments on a car that you can no longer drive. GAP coverage is often most valuable during the first few years of your auto loan when depreciation is steepest.
When to Consider GAP Insurance
While not every pre-owned vehicle purchased at a MotorWorld | MileOne Autogroup dealership requires GAP coverage, it is highly recommended in a couple of specific financing scenarios. First, if you made a down payment of less than 20 percent or opted for an extended loan term, your risk of being upside down on the loan increases. Another scenario where purchasing GAP insurance makes sense is if you have purchased a used vehicle that historically loses its value quickly. Also check your loan terms, because some loans will require it.
Browse Our Selection of Used Cars in Wilkes-Barre, PA
Now that you know a little bit more about GAP insurance, visit a MotorWorld | MileOne Autogroup dealership. Our Wilkes-Barre, PA, locations offer a wide selection of used SUVs, sedans, trucks, and more. Visit us today!