Guaranteed Asset Protection

If your vehicle is totaled or stolen, will you be covered?

That new vehicle may be your pride and joy. But hereís a reality check. Unless youíve bought an exceptionally in-demand model, a new vehicle typically loses about 20% of its original value as soon as you take delivery.1 Unfortunately, that doesnít change the balance on your vehicle loan. For the time being you have whatís called negative equity. You owe more than what the vehicleís worth.

Both new and used vehicles depreciate quickly. The average is 20% in the first year.1 And people are extending their loan terms to lower their payments, which means they have negative equity risk even longer. A recent poll conducted shows that drivers intend to keep their vehicles for ten years or more.2

You can deflect some of this risk by adding MEMBERíS CHOICE GAP to your vehicle loan. If your vehicle is stolen or totaled, GAP will help cancel the difference between the primary insurance settlement and what you may still owe. That could be a big relief if you need to come up with a down payment and replace a stolen or totaled vehicle immediately.

GAP Graph

With the rising cost of vehicles, fast depreciation and longer vehicle loan terms MEMBERíS CHOICE GAP may be a smart option to add, helping to cover the negative equity gap.

Your purchase of MEMBERíS CHOICETM Guaranteed Asset Protection is optional and will not affect your application for credit or the terms of any credit agreement required to obtain a loan. Certain eligibility requirements, conditions, and exclusions may apply. Please contact your loan representative, or refer to the Member Agreement for a full explanation of the terms of MEMBERíS CHOICE Guaranteed Asset Protection (GAP). If you choose GAP, adding the product fee to your loan amount will increase the cost of GAP.

1 AOL Autos, "Is Buying A New Car Worth It?" http://autos.aol.com/article/car-buying-new-or-used/, 2010

2 Gerson Lehrman Group, 'Majority of Drivers Plan on Holding on to Vehicles More Than Ten Years', 2010