Rustproofing, Undercoating, GAP,
And Other Products

Any of you who have purchased vehicles from dealers are aware that in the business office, in addition to extended warranties, the customer is offered a variety of other products. It is unfortunate that on some of the internet sites that offer "advice" for car buyers, these products are referred to as "dealer scams" or "worthless", and on one site, even highlighted by sophomoric attempts at humor like little animated pictures of bulls defecating. While all of these products aren't for everyone, for many customers they do have value. On this page, I have listed a few of those products with a brief description.

G.A.P.

G.A.P. is an acronym that means Guaranteed Asset Protection. In a situation where the vehicle is damaged to the extent that it is declared a total loss, G.A.P. covers the difference between the insurance settlement and the loan payoff. If you are making a down payment large enough to immediately put you in an equity position in the vehicle that you are purchasing, then you would be wasting your money on G.A.P. Everyone else should have this coverage. Here is an example of why this is true. Let's say that you buy a new car for $18,000. On that price vehicle, it is realistic to assume that tax, title, license, and documentary fee adds another $1,250 to the amount financed, making it $19,250, which you finance at an interest rate of 6.5% for a term of 5 years. Now, let's assume that 8 months later, the vehicle is totaled. If you like, you can pull up the on-line Loan Calculator, and plug in those values to see how the loan will amortize. You will see that, after making eight payments, the buyer still owes $17,029. The insurance adjuster, however shows you vehicles comparable to yours on the used car market that can be purchased for $14,000, and bases your settlement for the loss on this number.

Without G.A.P., you still owe the lender over $3,000 after the insurance settlement. With G.A.P., you owe nothing.

Service Plans

Car Care Service Plans can be purchased in order to include the cost of maintaining your vehicle in your car payment. In effect, it is money that you will spend anyway in the course of owning or leasing your vehicle, but instead of having to pay at the time that you have your vehicle serviced, you can pay this up front, usually at a discount over what you would spend over the course of ownership.

Chemical Protection

Rust proofing, undercoating, paint protection, interior fabric protection or any combination thereof, can be purchased at the time that you buy or lease your vehicle. Depending upon the length of time that you intend to own the vehicle, you might find these products to be particularly valuable. In this area, with the harsh anti icing chemicals that are used on our roads in the wintertime, everything will eventually rust. These products can help to prolong that eventuality, and keep your vehicle looking new longer.