There are so many terms and concepts when it comes to refinancing your auto. As experts in the field of auto-refinancing, we at Flatiron Finance know this stuff backwards and forwards, but we realize that it may be confusing for anyone that is not working in our field. At the end of the day, it is not so complicated, but we know that it may seem that way at first.
With that being said, you may want to know:

What is Guaranteed Asset Protection (GAP)?
First of all, and most simply put—GAP is a supplement to your regular auto insurance. It is there for you to protect against if a major accident occurs, and for various reasons, your regular auto insurance is not able to completely cover you. GAP insurance Colorado makes up the difference between what your insurance company agrees to pay, and what you actually owe on your loan, and thus effectively bridges that “GAP.” Colorado GAP Insurance even covers your deductible up to one thousand dollars. If you do choose to refinance your auto loan in Loveland, Denver or any part of Colorado, you might consider getting GAP.

Why is GAP necessary? Shouldn’t my auto insurance cover this sort of thing?
Well, in an ideal world, that would be the case. However—it is not uncommon for a vehicle to depreciate faster than the loan balance pays down. This results in something called a ‘negative equity’ or an “upside down” position in your loan. This is particularly true if your original loan was written at a higher interest rate with more of your payment applied to interest than paying down the loan balance. In the event of a car accident where the car is “totaled”, the financial hit can be significant.

You have worked hard for your credit rating, and Flatiron Finance wants to help you to protect it; with GAP, you are protected when the unexpected happens.

At Flatiron Finance, our goal is to help you save money and protect you and your credit from potential threats by getting a Colorado auto refinance loan. Call Flatiron Finance today, and be sure to ask your loan specialist for details.

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