Wise F&I

Welcome to GAPWise! GAP is a two party agreement between you (the lender) and your borrower to modify the prepayment provisions of your loan agreement in the event of a "total loss" of the automobile collateral. 

Today's borrower is generally requesting auto loan amounts that exceed standard lending criteria. Down payments of $750 or $1,000 are common for vehicles costing $18,000 to $25,000 and more. 

The lack of equity down payment and the demand for extended term financing often creates a negative equity position with your loans; resulting in deficiencies of $3,000, $5,000 and more. 

The leasing industry long ago realized the problems associated with exposing borrowers to the potential of deficiency balances in the event their collateral became a "total loss." While the borrower has historically had the ability and habit of meeting his or her known obligations, the unexpected "total loss" to a vehicle could cause permanent damage to the borrower's credit history and create tremendous dissatisfaction with their lease experience. Nearly every automotive lease currently includes GAP as an automatic benefit. 

Finally, it is important to remember that GAP IS NOT AN INSURANCE TRANSACTION BETWEEN YOU AND YOUR BORROWER. You are merely agreeing to alter the loan document to forgive any amounts due you. If the collateral is deemed a total loss, you agree to waive any difference between the outstanding Loan Balance and the insured value or actual cash value of the vehicle at the time of loss. By submitting the GAP waiver and paying the appropriate premium, you are insuring your exposure to loan loss should your borrower suffer a "total loss."



Can I put GAP on outside financed car loans? Click here for the answer!