What is GAP Coverage?

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Protecting your New Vehicle

It’s a simple fact that a new vehicle starts to depreciate in value the moment it leaves the lot.

When financing a new car the market value of the vehicle will likely be less than what you owe on your loan. Simply put: what you owe on your vehicle’s loan is more than the vehicle is worth. Standard auto insurance policies will only cover the depreciated value of the car, or, the market value.

This means that, in the event of an accident that totals your car, the insurance company will pay you based on the market value of the vehicle. What happens if this market value is less than your loan amount? Well, in that case you’ll be on the hook to pay the difference EVEN IF the vehicle is no longer drivable. This difference in the market value and the loan amount is called the financial gap.

BMC Has You Covered.

Guaranteed Asset Protection or GAP, is one way to protect yourself from falling into this financial situation. Gap coverage basically erases the financial gap. You won’t owe anything on your totaled car, leaving you clear to purchase a new vehicle. It’s a great way to give yourself peace of mind while owning and driving a brand new vehicle.

For more information on buying a car or to just start shopping for your next vehicle, visit Bismarck Motor Company.

Online Credit Application

Fill out one of our online credit application and get pre-approved for your next vehicle.

Our Financial Services Include:

Competitive rates direct from the manufacturer and local North Dakota banks
Quick approvals
Value-added services to protect your vehicle investment
Extended warranty programs
And many more finance programs to fit your needs

Our Bismarck, ND Finance Center is always happy to answer your questions, so please don’t hesitate to contact us today!

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