There are many reasons to trust Hall used cars when you’re looking for your next vehicle. Used cars are less costly than new models, meaning more vehicles will be available within your budget, and you won’t need to wait as long to save up for a down payment. However, many visitors to Hall | MileOne Autogroup dealerships wonder whether they’ll need GAP insurance for their used car, so today we’re taking a moment to clear that up.
What is GAP Insurance?
GAP insurance stands for Guaranteed Asset Protection. It is designed to bridge the distance between the amount you owe on the vehicle and the vehicle’s value, in order to protect you in the event of total loss or theft. Typically, you are required to get GAP insurance if you are renting or leasing a vehicle, as this helps to protect the lender. When it comes to pre-owned vehicles, however, there are many factors to consider before purchasing GAP insurance.
Pre-Owned Vehicles and GAP Insurance
Unless it’s explicitly required in your loan terms, you don’t necessarily need GAP insurance for your pre-owned vehicle. This is partly because pre-owned vehicles are much less costly than new models, and your risk is lower.
However, there are a few circumstances in which you’ll want to purchase GAP insurance for a used vehicle to protect your investment. If you put down less than 20% of the vehicle’s value or if your term length is over 60 months, GAP insurance can help to protect you from owing a large amount of money on a car you no longer own. GAP insurance is also useful if you have negative equity from a previous loan or a high rate of depreciation, which is less common in pre-owned vehicles.
Test-Drive Pre-Owned Cars at Hall | MileOne Autogroup
When you’re ready to experience the benefits of purchasing a pre-owned vehicle, Hall | MileOne Autogroup is here to help. We’re also here to answer your questions and provide extra layers of protection that ensure your peace of mind. Get the coverage and support you deserve at our dealerships.