For New Car Purchases, GAP Insurance is Essential

Most people who purchase new cars do so use financing from a bank. They will gradually pay off the price of the car over a few years. However, there is a fundamental disparity between the loan amortization and the decline in the value of the car. Fortunately our team at Doug Smith Chrysler Jeep Dodge Ram is here to guide you and your vehicle towards long-term success.

Once purchased, a new car will see its market value immediately drop, followed by a very gradual decline. On the other hand, the loan will amortize at a more or less constant rate. This means that in the first few months or years after the car has been purchased, there is a significant disparity between the amount one owes on the car and its actual value.

When an accident occurs, most insurance policies will pay the market value of the car, leaving the owner to pay the difference between that and the loan value. GAP Insurance solves this problem by providing coverage for this difference. Our showroom at 523 West Main Street is a conveniently located solution for easily purchasing GAP Insurance that can cover your vehicle!

Categories: Finance, News
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