Based on recent trends, it is safe to say that “Depreciation” is back in a big way and that auto industry providers of “Local Market Valuation reports” are back to their old tricks! This double whammy is hitting consumers hard if their vehicles are deemed a Total Loss and drives up the need for quality GAP protection.

Take a look at this GAP claim. The borrower had equity at the loan origination and the LTV was just 91.26%. Many lenders might not have even offered GAP to this borrower, but fortunately, in this case, the lender did! GAP paid the entire remaining balance of $8,241.65!

So…the moral of this story is, make sure to let your borrowers know about your loan protection products and then let them make an informed decision.