Auto Insurance Maryland

Is Your Car Worth Less Than Your Loan?

The economy has made financing cars more difficult and lease arrangements are scarce, car loan and existing leases may last as long as  four to six years. Whether your vehicle is a coupe, sedan, van, sports utility vehicle, or truck, your vehicle’s value will depreciate very quickly. A rapid loss of actual value accompanied by a longer loan obligation spells trouble.

It isn't’t unusual for the amount of the unpaid loan and lease  balance becomes much larger than the vehicle's value. This disparity exists over much of the loan or lease period. Making matters worse is that this gap is usually only discovered after a total loss. After the insurer pays its obligation, you may have to pay the bank or leasing company thousands of dollars out of your own pocket.  The situation is an unfortunate side effect of the need to extend financing to accommodate extremely expensive vehicles. However; there is a solution to the dilemma.

Buy Loan / Lease Gap Insurance

It's as simple as adding it to your car insurance - however - it needs to be done sooner rather than later. 

Please check with us for more details....


Jeff Rosenkilde, Sr.  CIC
 

 

Posted 11:12 AM  View Comments

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