F&I Tips is a weekly information video series brought to you by American Financial & Automotive Services, Inc.’s F&I University® (FIU). Our FIU Trainers have decades of realworld experience in the automotive industry, which they bring to you through this F&I Tips video series, as well as our fiveday intensive F&I School at our corporate headquarters in The Woodlands, Texas.

In this video, GAP As A Cash Conversion, FIU Trainer, Dwayne Wiggins, will assist you with the why and how to present GAP to your customer when they want to pay in full for the purchase of their automobile.

When your customer writes you the check, you are not able to discuss with them GAP, Guaranteed Asset Protection; also known as Debt Protection.

Obviously if your customer writes you a check there is no deficiency balance between the amount financed and a total loss situation. Although, GAP or a deficiency has still occurred. The reason is because every vehicle that drives off the lot is going to depreciate. If a check is written for the vehicle your customer is 100% at risk for all that depreciation. That’s 100% of their money that is on the line.

If they choose to purchase the debt protection, GAP will cover up to $1000. The best part is that, depending upon how you decide to set the term, payments and down payments up your customer can still have a large portion of their money safely tucked away in their bank account. They didn’t have to put all their money upfront, they let GAP assume that depreciation and risk.

Financing the purchase of your customer’s vehicle with GAP is a great alternative for your customers who have worked hard for their money and want to protect their money as much as they can.

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