Think outside the vehicle box to increase the value of your auto loans

by: Ronni Martinez

If you have a rock star team of loan officers, and I’m sure you do, chances are they are offering Guaranteed Asset Protection (GAP) to each one of your auto loan borrowers. There’s no question to either financial institutions or borrowers, that due to many of its benefits, GAP is a necessary auto loan protection product that should be purchased whenever a customer finances a new car, truck, or SUV with you.

GAP is an easy cross-sell product, and it provides several benefits to financial institutions:

  • Reduced auto loan losses

  • Increased customer loyalty

  • Additional fee income

Borrowers experience a different set of benefits:

  • Reduced or eliminated out-of-pocket expense for the remaining loan balance, in the event of a total loss to their vehicle

  • Remaining in good financial standing with their lender and protecting their credit rating

  • Peace-of-mind knowing their loan amount will be covered

  • The ability to purchase a new vehicle sooner

But, what about your non-traditional auto loans? Do you have a customer that is an avid fisherman and finally decided to buy their dream boat? What about your Harley-loving customer that finances a Hog through your institution? GAP is a product that not only protects private passenger cars, trucks, and SUVs, but in most cases, non-traditional vehicles, too:

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