Protection for the road ahead
GAP insurance and VSC can help your credit union and its members.
by: Tom Kazar
Throughout life’s metaphoric winding road, almost every choice has a risk attached. And some of the more expensive risks take place literally on the roads, streets, and highways.
Most of the time people try to mitigate risks so that negative consequences incurred will be minimal. For example, your members may drive more cautiously in the rain and never let their gas tank fall below half full.
Yet, even the best mitigators cannot completely eliminate risk. That is why there are protection products available to help protect you and your members.
Let’s look at a common scenario. A member wants to purchase a new vehicle with financing from your credit union. According to the latest “State of the Automotive Finance Market” report, in the fourth quarter of 2014, 84 percent of new vehicles were purchased with financing, the average loan amount hit its highest level on record, and the average loan term increased to 66 months.continue reading »