What about all the extended warranties?
The dealer will offer you various extras to protect your vehicle or loan. Ask yourself what makes sense to you and adds value to your purchase. Of all the choices you may be offered, we recommend that you primarily consider Guaranteed Auto Protection or GAP insurance and Major Mechanical Protection (MMP). We also offer these services at a much-reduced price in most cases. This is another area where prices could vary by hundreds of dollars. Be sure to get a price quote from HCU along with the dealer.
GAP Insurance
Guarantee Asset Protection (GAP) protects you against financial loss in the event your vehicle is damaged beyond repair (totaled) or stolen and never recovered. A typical example would be if you purchased your vehicle for $31,000, one year later the value would depreciate to $15,350. You still owe $24,281 when it is stolen and never recovered, or is involved in an accident in which it is beyond repair. Most insurance policies will only reimburse you for the value of the vehicle ($15,350) less the deductible. If the deductible was $1,000, the insurance company would pay $14,350, leaving you with a $9,831 loan balance. GAP protects you against this kind of financial loss!
MMP
Major Mechanical Protection (MMP) provides valuable protection against the cost associated with most unexpected mechanical breakdowns. This coverage begins when the manufacturer's standard warranty has expired. This plan is also available on used automobiles with many different coverage options.
1, 2, 3 Deciding What Vehicle You Can Afford
Don't be Fooled by 0% Financing - Take the Rebate!
