One of the biggest benefits of an extended warranty, is that it will most likely cover unexpected repairs on your vehicle during the lifespan of the policy. It’s especially handy if you are on a tight budget due to your recently obtained vehicle loan payment.
The current landscape behind purchasing extended warranty isn’t what it used to be 10, 20, even 30 years ago. Talk to any mechanic about the differences between a car made in the year 2000 vs 2020 and they will tell you they don’t make them the same. It’s due to a range of different microprocessors controlling engine functions, brake and security systems, Navigation and entertainment systems, the majority of these options are now standard in vehicles. These different systems provide car owners with a whole new set of problems that cannot be solved with just a wrench.
A decade ago, a standard loan term was 60 months (5 Years). Today the standard loan term is 84 months (7 years), and in some cases even 96 months (8 years). The average consumer carries more debt today, than ten years ago. Longer loan terms have made payments more affordable; however your vehicle’s value declines faster than the balance owing on your vehicle loan. This could leave you liable for thousands of dollars in negative equity, in the event your vehicle is deemed a total loss (written off).
Guaranteed Asset Protection (GAP Coverage) Covers the shortfall between what your insurance provider deems your vehicle is worth, and what is owed to the bank.
Life & Disability Protection
Loan life insurance provides loved ones with coverage upon death, and covers your financial obligations and commitment. It allows your family to still maintain their same standard of living, and compliments your private policies and employment coverage.
Accident and Health (Disability Insurance) provides coverage for temporary, or permanent disability, due to illness or injury. Your policy provides you with monthly payment support for your loan, so you can continue to meet your financial obligations.
**Did you know that 38% of ALL vehicle repossessions are attributed to situations where people were unable to make payments due to illness or injury, and 43% of all loan and property foreclosures are the result of disability**