Standard GAP or No Chargeback GAP. Pick on your numbers.

For your customer, this works exactly like traditional GAP. Total loss or unrecovered theft, the coverage pays the difference between the insurance settlement and the loan balance. No change at all. The difference shows up only when a contract cancels, and it shows up on your side of the ledger.

This is a dealer-economics feature: it describes how your store’s earned revenue is treated. It is not a restriction on your customer. Cancellation and refund rights are governed by the GAP Addendum and by state law, exactly as on any other program.

In the event of a qualifying total loss or an unrecovered theft, No Chargeback GAP helps cover the difference between the Net Payoff and the primary insurance settlement (or the vehicle’s actual cash value if no primary insurance exists), subject to the terms of the GAP Addendum.

Age, mileage and term are where most GAP programs kill a deal, usually the exact deal where the customer is furthest upside down. This program is unusually open on all three.

Coverage is not available for

Three options sit above the base program, each carrying its own surcharge. Two of them extend eligibility to a vehicle that would otherwise not qualify. The third adds a benefit.

Standard GAP protects customers from paying the difference between their insurance settlement and the remaining balance on their loan or lease. It includes deductible reimbursement up to $1,000. The price shown on this page is for the 150% loan to value contract; an unlimited loan to value contract is also available. Some lenders require unlimited LTV coverage and others do not, so the right contract depends on the lender on the deal.

For dealers, this option is straightforward, easy to present, and carries the lower cost per contract. Cancellation refunds are charged back to the dealership for the life of the contract.

GAP Plus adds a $1,000 credit toward the purchase or lease of a replacement vehicle after a qualifying total loss. A total loss is the moment a customer is most likely to leave, and the credit is a reason to call you first. The qualifying condition is set by the GAP Addendum, and we pin it down for your program before it goes on a menu.

Express GAP accelerates the earnings schedule, so a significant portion of the addendum is typically earned within the first two years of the loan. That reduces dealer liability when a customer cancels early, while the customer keeps the same protection against the shortfall after a total loss.

Every contract is F&I Sentinel approved.

• Coverage terms up to 96 months for longer loans and leases
• Deductible reimbursement
• Replacement-vehicle credits that drive retention
• Unlimited loan to value contracts, plus LTV-capped contracts where the lender allows them

When a customer's vehicle is declared a total loss, their insurer typically pays the actual cash value of the vehicle, which is often less than the remaining loan or lease balance. GAP Protection is designed to help address that difference, so the customer is not left owing thousands on a vehicle they no longer have. It is not auto insurance and does not replace it; it works alongside the customer's policy.

Because GAP is tied to the financing on the deal, the finance office is the natural place to present it, while the customer still qualifies and the coverage can be included in the loan.

The gap between what a customer owes and what a vehicle is worth is widest when several factors stack up: a long loan term, a low or no down payment, rapid depreciation in the early years, and negative equity rolled in from a prior vehicle. Each one pushes the loan balance above the vehicle's value. Understanding a customer's deal structure during discovery is what lets a finance manager explain, honestly and clearly, how exposed they actually are.

• Presenting GAP only as a payment add-on
• Not explaining what negative equity is
• Not discussing total loss scenarios clearly
• Weak product knowledge that cannot answer questions
• A rushed or skipped menu presentation
• Skipping discovery of the customer situation
• Inconsistent waiver documentation
• Treating every customer the same

• GAP penetration
• Eligible deal review
• Loan-to-value (LTV) trends
• Negative equity frequency
• Waiver completion
• Chargebacks
• Cancellation rates
• Claims trends
• Menu presentation consistency
• Products per deal
• Customer understanding
• Manager coaching cadence

GAP is a meaningful part of many dealer participation strategies. Product penetration, claims experience, consistency, and clean documentation can all matter to how a long-term program performs. Learn how the models work in the dealer reinsurance guide, compare program structures, or weigh options with the comparison tool.

General educational information only. Not tax, legal, accounting, insurance, or investment advice.

For the customer, nothing. Both help pay the difference between the insurance settlement and the loan or lease balance after a qualifying total loss or unrecovered theft, and both include up to $1,000 of deductible assistance. The difference is on the dealership’s side. On Standard GAP, when a contract cancels, the prorated refund is charged back to the dealership at any point in the term. On No-Chargeback GAP, after the first 90 days the administrator pays that refund instead. No-Chargeback GAP costs the dealership more per contract in exchange.

Compare two numbers per contract: what No-Chargeback GAP costs extra, and what chargebacks cost you today. If refinances, early payoffs and trades are routine at your store, the chargebacks you give back usually exceed the extra cost and No-Chargeback GAP fits. If few of your contracts cancel before the end of the term, Standard GAP at the lower cost fits. The walkthrough at the top of this page puts what you have today beside both programs on your own numbers.

GAP (Guaranteed Asset Protection) is an optional product that helps cover the difference between what a customer still owes on their auto loan or lease and what their insurance pays if the vehicle is declared a total loss or is stolen. It is designed to protect the customer from a large, unexpected shortfall on a vehicle they no longer have.

If a covered vehicle is totaled, the customer primary insurer typically pays the actual cash value of the vehicle. If the loan or lease balance is higher than that amount, GAP helps address the remaining difference, subject to the terms of the agreement. It is added through the finance office and tied to the financing on the deal.

No. GAP is not auto insurance and does not replace it. It works alongside the customer existing policy. The insurer pays the vehicle value after a total loss, and GAP is designed to help with the balance still owed beyond that payout. This is general educational information, not insurance advice.

GAP is most relevant for customers who owe more than their vehicle is worth or are likely to: those with long loan terms, low or no down payment, rolled-in negative equity, or a high loan-to-value ratio. A consistent process means presenting it to every eligible customer so they can make an informed choice.

Negative equity means owing more than the vehicle is currently worth. Vehicles depreciate quickly, and long loans or rolled-in balances widen the gap between value and payoff. After a total loss, that gap is exactly what the customer would otherwise owe out of pocket, which is what GAP is built to address.

Presented well, GAP lifts product penetration and PVR, improves the customer experience by removing a major financial risk, and builds trust that supports retention. Consistent GAP production and clean documentation can also matter to a dealer long-term participation strategy.

A manager who clearly understands negative equity, loan-to-value, and how GAP responds after a total loss can explain the value simply and answer questions with confidence. Strong product knowledge is what turns GAP from a payment add-on into a decision the customer genuinely understands.

We connect GAP to the full Adaptive Training system: discovery, product knowledge, building value, menu presentation, objection handling, and compliant documentation, reinforced through coaching and measured against penetration and cancellations. The Finance Manager Readiness Assessment is a fast way to find where your process needs the most support.

Not quite, though most customers call it GAP insurance. GAP sold at a dealership is usually a GAP waiver addendum to the finance contract: if the vehicle is a total loss, the remaining balance above the insurance settlement is waived. The addenda we place say plainly that they are not insurance and do not take the place of auto insurance. Some auto insurers sell their own loan or lease payoff coverage as part of a policy, which is a separate product with its own limits.

No. GAP is optional. The addenda we place state that buying one is voluntary, is not required to get credit, and does not change the credit terms or the terms of the sale or lease. A compliant presentation offers it to every eligible customer and lets them decide, and a menu that shows the payment with and without it makes that choice clear.

Yes. Under the addenda we place, a customer can cancel at any time. Within 30 days of purchase the refund is the full price, as long as no benefit has been paid. After 30 days the refund is pro rata, less a cancellation fee ($50 on both addenda, and not charged in every state). When the GAP was financed, the refund usually goes to the lender and reduces the loan balance unless the loan is already paid off. State law can change these terms, and the addendum governs.

The GAP ends with the finance contract it was written on, so a payoff, refinance or trade ends it, and the customer can request a refund of the unearned portion in writing (within 90 days of the payoff on the Axiom addendum). On a standard GAP program that refund is charged back to the dealership, which is the cost No-Chargeback GAP is built to remove: its earned revenue stays with the store after an early payoff, refinance or trade.

No-Chargeback GAP is a GAP protection structure that reduces dealer refund exposure while providing full customer protection. In the event of a qualifying total loss or unrecovered theft, the coverage helps pay the difference between the customer’s primary insurance settlement and the remaining loan or lease balance, subject to the terms of the GAP Addendum.

It changes who funds a cancellation refund, and nothing else. On a conventional program, when a contract cancels, the prorated refund owed to the lienholder is charged back to the dealership. On No-Chargeback GAP, after the first 90 days the administrator pays that refund directly instead. The customer still receives the prorated refund, the lienholder is still paid, and the store keeps the profit it booked at delivery.

All three end the finance contract early and all three are common enough to plan around. On a conventional GAP program each one triggers a prorated refund that is charged back to the dealership, pulling back income booked at delivery. On No-Chargeback GAP, once the contract is past 90 days the administrator funds that refund instead, so the store retains its earned revenue in all three cases.

Coverage remains with the assigned financing contract. On conventional programs the treatment varies, which is one of the quieter sources of unexpected chargeback activity, because the dealership often has no visibility into an assignment after funding.

They can. Some lender exclusions may apply: a lender may decline outside GAP, require its own product, or cap what can be financed alongside it. Confirm the lender accepts the program while you are structuring the deal rather than at funding, when the only remaining fix is unwinding a signed contract.

Yes, and it works identically from the customer’s side. Total loss or unrecovered theft is covered the same way, and every cancellation and refund right the customer would have on any other GAP program is unchanged. No-Chargeback describes where the refund money comes from, not what the customer is entitled to. Cancellation and refund rights are governed by the GAP Addendum and by state law.

A GAP contract can be cancelled at any point in its life, and on a conventional program the dealership’s refund exposure runs the entire length of that term. No-Chargeback GAP stops it at day 90. Because the overwhelming majority of a contract’s term sits after day 90, and because early payoffs, refinances and the trade cycle are the events that drive most cancellations, that is where the real chargeback exposure lives.

More than most stores assume, because a GAP refund is prorated and the dealer is charged back the unearned share. A cancellation 27% of the way into the term does not cost 27% of the profit; it costs 73% of it. At 50 GAP contracts a month, a 19% chargeback rate and $800 of profit per contract, that is roughly $67,000 a year coming back out of income already booked. The walkthrough at the top of this page runs it on your own numbers.

Up to $50,000 per qualifying loss, with up to $1,000 of deductible assistance included in the base program rather than sold as an add-on. The $50,000 figure is a ceiling on the waiver, not a payout; the benefit is whatever the covered difference works out to be. It clears almost every retail deal, and binds mainly on high-payoff, heavily negative-equity, long-term contracts.

New and used, with no mileage restriction, up to 20 model years, and terms up to 96 months. Coverage is not available for certain excluded makes (Aston Martin, Bentley, Ferrari, Lamborghini, Lotus, Maserati, Rolls Royce, Yugo), for recreational vehicles, boats, ATVs, snowmobiles or motorcycles, or for limousines, taxis, rental vehicles, cargo vans, box trucks, dump trucks, semi trucks, tow trucks and utility trucks. Vehicle eligibility is subject to administrator approval and contract terms.

Yes, with the Salvage Vehicle surcharge selected and paid at enrollment. A branded title is an automatic decline on most GAP programs because actual cash value after a rebuild is unpredictable, and that value is the entire basis of a GAP claim. Here it is a surcharge rather than a decline. The Commercial Vehicle surcharge similarly extends eligibility to approved commercial use, though it does not reopen the ineligible-vehicle list.

A loss must be reported within 90 days of the settlement date, and documentation must be submitted within 90 days as well. Reporting on time is not enough on its own; the file has to be complete inside the window too. Note that the clock runs from the insurance settlement date, not the date of the accident, so on a slow or disputed claim the window opens later than customers expect.

No. It drops into an existing menu and F&I process without an operational rebuild. Elite FI Partners sets the structure, the presentation order, and the word track before it goes live, and your team gets the No Chargeback GAP course in our training portal with a certificate on an 80% pass.