GAP insurance becomes a problem for military members

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From the bloggers at Automotive News:

A change to the Military Lending Act, designed to protect service members, has instead left some in financial distress. And it has dealers, particularly those near military bases, wrestling with how to comply with the law.

A December 2017 interpretation of the act has blocked military members from buying an aftermarket product from dealerships that could save them from owing thousands of dollars if their vehicles are totaled.

Guaranteed asset protection — or GAP — covers the difference between the actual value of vehicles and the depreciated values. To comply with the act, most dealerships no longer offer service members GAP, and most lenders haven’t been able to finance it.

“This really is a ticking time bomb,” Charlie Gilchrist, chairman of NADA and president of Gilchrist Automotive in Texas, told Automotive News. “We have to get it handled.”

The full blog is available at www.automotivenews.com.

Greg Gerber

Greg Gerber

A journalist who has covered the recreation vehicle industry since January 2000, Greg Gerber founded RV Daily Report on April Fool's Day in 2009. He also serves as the editor of the publication and website. As an Eagle Scout, he has enjoyed camping for decades and has visited every state except Hawaii. A DODO -- Dad of Daughters Only -- to three young women, he has two grandchildren as well. He currently splits his time between Wisconsin, Texas and Arizona. Greg can be reached at editor@rvdailyreport.com.

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