Will the financing terms you select impact the loan/lease gap?
With increasingly more car buyers investing in sophisticated but costlier vehicles, monthly loan payments are hitting all-time highs. Drivers that choose an extended length loan, one that spreads car payments out over a longer period of time, should be aware of the disadvantages. Opting for a loan term longer than 60 months can put you severely underwater, meaning you may always owe more on your car than it is worth on any given day.
For example, if you were to total your car in an accident, you will owe your lender the difference between what your insurance company will pay for the car’s market value on that day and what remains of your loan balance. Depending on how far along you are in your loan or lease term, this could add up to thousands of dollars, unless, of course, you have Loan/Lease Gap Insurance to cover this gap.
Even if you bought your car months ago, and you are just now finding out about this insurance option, you can still give us a call to discuss your options. Loan/Lease Gap Insurance is generally very flexible, and we should be able to find an excellent option to enhance your current auto insurance policy.