GAP Insurance - It's not just for new cars
Some people consider GAP insurance a product to purchase only when your buying a brand new car on finance or lease to protect yourself against a financial shortfall should your vehicle be stolen of written off after an accident.
However GAP insurance can be sold to used vehicles too. Our GAP products can cover vehicles up to 10 years old and up to 15 years old on our Fleet GAP product. We provide a wide range of products that can cater for a variety of different contract types, even if the vehicle was purchased outright, such as our Purchase Price Protection GAP, that will in the event of a total loss pay the customer the difference between the motor insurer's settlement figure and the customer's original invoice price. These additional funds could then be put towards their next vehicle purchase.
Take a look below at some actual used car GAP claim examples to see the benefits of GAP insurance.
Volkswagen Golf – Combined Purchase Price Protection and Finance GAP
Customer's invoice price: £7995
Finance outstanding: £6165.74
Motor insurance settlement: £5090
GAP Settlement: £2905
Porsche Cayenne – Combined Purchase Price Protection and Finance GAP
Customer's invoice price - £38490.00
Finance Outstanding - £36431.44
Motor insurance settlement - £33.750
Excess included - £250
GAP settlement - £4990
There has been a recent boom in used car sales due to stock shortages affecting new car production. For more information see https://www.motortradenews.com/news/used-car-sales-boom-whats-going-on/. Remember GAP insurance is available to used vehicles too.
With used car sales soaring and the launch of the new 71 plate vehicles next month, now is great time to be offering GAP insurance to your customers. Your customer may have already ordered their new car so why not offer them a GAP quote now? The dealer will certainly be including GAP in their product offering.