Without a good credit rating, they explain, many people are “upside down” for half of their loan, if not more.
Seattle, Washington (PRWEB) June 22, 2013
Nearly everyone is vulnerable when buying a new car. Gap insurance, Complete Auto Loans explains in their article, is a safety net for the time when buyers are “upside-down” on their loan payment. Typically, this is when the car insurance coverage for total loss is still less than the remaining balance of the auto loan.
This creates a “gap” between what the insurance company is willing to pay and what is still owed, says Complete Auto Loans in their article. To illustrate, they give an example with a car that has deprecated in worth from $10,000 to 8,000 just after purchase. Complete Auto Loans explains that if something were to happen before the first loan payment, insurance would kick in for the worth of the car, but leave the "gap" of $2,000. Gap insurance takes care of this, they explain.
In their article, Complete Auto Loans also shows how often this happens, especially to those with bad credit. Without a good credit rating, they explain, many people are “upside down” for half of their loan, if not more. This, they insist, is a long time to be without a “way out”, in case disaster strikes.
By providing these tips to people without good credit, CAL hopes they can make the best decision for their needs. More topics on the ins and outs of car buying can be found on their website.
About Complete Auto Loans:
CAL provides bad credit auto loans online. Their unique finance platform can accept 100% of applicants, regardless of poor credit or even bankruptcy. By visiting http://www.completeautoloans.com, consumers are able to find the ideal loan for their personal financial situation, all through a quick and easy online process.