Posts Tagged 'GAP'

American 1’s GAP more affordable

Jessee Frey-Cochrane

People say good things come in threes, but Jessee Frey-Cochrane found out that bad luck can come in twos.

In the span of one year, Jessee had to use American 1’s Guaranteed Asset Protection (GAP) twice on different vehicles.

In August 2006, Jessee’s “summer vehicle,” a 1995 Pontiac Bonneville in great condition, suffered from a sunroof seal leak and was wrecked by mold damage. Her insurance company ruled the damage as a total loss. The next year, in April 2007, her 2004 Ford Freestar caught fire after an electronic harness defect, leading to another ruined vehicle.

Thanks to her GAP coverage, the difference between what Jessee owed on her vehicles and what the insurance company offered her in settlement disappeared.

“It really paid for itself,” Jessee, an American 1 member since 1998, says, “especially after I used the $1,000 GAP Advantage towards my next vehicle.”

Jessee, a Grass Lake resident, knew about GAP coverage as a licensed insurance agent, and shopped around for the best deal. She didn’t find it at a typical dealership, where the GAP price is based on the vehicle’s cost – and can be double or triple the price.

“American 1’s GAP was a flat rate,” she says. “So now I tell people to go to a local credit union – it’s cheaper than the dealership.”

It could just be bad luck that two of her vehicles were totaled within a year. American 1’s GAP coverage, however, helped Jessee balance the score.

“I won’t purchase a vehicle without GAP ever,” she says.

May and June vehicle sale winners

Danielle is our May winner

Congratulations to Danielle Lenz – our May 2010 vehicle sale grand prize winner. Danielle won $1,000 in gas cards at our Jackson Co. Fairgrounds sale.

Unfortunately her 2008 Chevy Cobalt was totalled soon after she financed it at the sale. But between insurance and American 1’s GAP protection, she recouped the costs. Now she’s shopping for another vehicle.

Nick Howard

Nick Howard purchased a Pontiac G6 at our most recent June sale. Nick won our summer fun package that included Detroit Tigers box seats, Cedar Point tickets, a $100 gas card, restaurant gift cards, and free rounds of golf – and more.

“Spend a little, get a little,” Nick says. “I was pretty excited.”

Congratulations to both of our car sale winners!

GAP eases crushed sense of security

Nick Detlaff

Nick Detlaff never figured he would need something like American 1’s Guaranteed Asset Protection (GAP). He’s a good driver, never been in an accident – why would he need to protect his vehicle?

Then a semi made a right turn that crushed Nick’s 2002 Nissan Altima, and changed his thinking.

The accident happened when Nick was taking his family to the airport for a vacation. He pulled up to an intersection and saw a semi waiting to make a left turn at the light. Nick pulled into the right lane, but things went horribly wrong when the big rig swung right, into Nick’s lane, smashing his Altima against the highway concrete.

“Luckily he stopped, or we would’ve been crushed,” Nick said. “It was a mess.”

With the vehicle totaled, the insurance company’s settlement left about $2,500 left on Nick’s auto loan.

“We weren’t thrilled,” he says. “We thought we would have to eat that payment.”

Thankfully, Nick opted for GAP on his loan. GAP covered the remaining balance on the loan, and gave him $1,000 toward his next vehicle purchase. Nick says it was like a down payment toward his next vehicle.

The ordeal taught him a good lesson: your driving skills can’t always protect you from other drivers. That’s where GAP can help.

“Just because you’re a good driver doesn’t mean everyone else is,” Nick says. “GAP is worth it. It ended up paying for itself.”

Nick now plans on getting GAP on his vehicle loans from here on out.

“Not that you plan on getting into another accident,” he says. “But anything can happen.”

MSN: GAP coverage is a good idea

MSN Money’s Liz Pulliam Weston, in “Why a wrecked car could cost you,” lays out why it’s good to have Guaranteed Asset Protection (GAP) coverage on your auto loan.

Because of dropping vehicle values, what you owe on your car could be more than what an insurance company will pay you for a wrecked or stolen vehicle:

Even if you made a big down payment, you still could be upside down on your loan or lease because resale values have plummeted so quickly.

Volatility in resale prices started last year, when gas prices spiked, hurting sales and values of bigger, gas-guzzling cars, said James Clark, the general manager for ALG, which publishes the Automotive Lease Guide.

Weston also notes that getting GAP from the dealership is “probably the most expensive choice.”

We have numerous stories about how GAP has helped members regain their vehicle investment. In the end, it’s affordable protection that can help cover the cost of your auto loan if the unthinkable happens.

GAP helps pay off stolen truck

traviscrallgap

Travis Crall of Litchfield took his girlfriend to Detroit to see a historical moment. The Detroit Lions, looking at the first 0-16 record in NFL history, were facing the New Orleans Saints at Ford Field one of the final games of the season.

“We watched them lose, as we figured,” Travis says.

But the Lions weren’t the only ones faced with bad luck that cold December night. After the game, Travis and his girlfriend walked the three blocks back to where they parked, in 10-below weather, only to find Travis’s 2003 Dodge Ram truck had been stolen.

After he filed a claim, Travi’s insurance company only agreed to cover $11,000 of his loan balance, leaving an $8,000 balance.

Luckily, Travis opted for Guaranteed Asset Protection (GAP) when he financed the truck with American 1. GAP covered the entire remaining amount.

Travis’s up-front cost for GAP? $235.

“For the one-time fee, it’s worth it,” he says. “It’s better than paying a lot if something happens.”

Unfortunately for Travis, that “something” was a stolen vehicle. His Dodge Ram was eventually recovered, missing several of its parts. In the meantime, Travis used the $1,000 GAP Advantage toward a Jeep. And, just in case, he opted for GAP again on his loan.

“Hopefully I don’t need it again, at least in that kind of situation,” Travis says.

GAP is much more affordable than paying the remaining loan balance should that “something” strike again.

“It pays for a little security,” Travis says.


American 1 Federal Credit Union