Truck Master launches heavy truck Gap Insurance
When you buy, or lease a new or used truck, the vehicle starts to depreciate the moment it leaves the lot. In fact, most trucks lose 20 percent of their value within one year. Standard heavy truck insurance policies cover the depreciated value; in other words, insurance pays the current market value of the vehicle. If you finance or lease the purchase of a new or used truck and only put down a small deposit down, the amount of the loan may exceed the market value of the vehicle in its early years of ownership. Gap insurance is available to cover the “gap” between what a vehicle is worth and what you owe on it.
It’s a good idea to consider buying gap insurance for your new car or truck purchase if you:
- Made less than a 20 percent down payment.
- Financed/Leased for 60 months or longer.
- Purchased a vehicle that depreciates faster than the average.
- Rolled over negative equity from an old truck loan into the new loan.
“For over a year we worked on a Gap Insurance program that was custom built specifically for the heavy truck market.” Says Truck Master Warranty CEO Jeff Dobish.
“As you have read in various editions of Successful Dealer, used truck prices continue to drop, while in fact the buyers amount owed declines at a much slower rate…exposing your customers to a potential negative equity risk”. Explains Dobish
“Imagine making monthly payments on a truck that you no longer own”
Truck Master Gap is available in 47 states, it is available on both new and pre-owned purchases or leases and is perfect for dealerships that promote leasing with a $1. Buyout. Visit www.truckmasterplus.com for more information.