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No-Chargeback GAP
No Chargeback GAP for dealers.
Your customer gets the protection. Your store keeps the money. On a conventional program every cancellation, early payoff, refinance and trade reaches back into income you already booked, often a year or more after the car was delivered. No Chargeback GAP stops that at day 90. From there the administrator pays the prorated refund straight to the lienholder instead of charging your store back, so your customer keeps every right they had and your F&I statement keeps the gross. It also writes the deals other GAP programs hand back to you: no mileage restriction, up to 20 model years, terms out to 96 months, new or used.
The program, in three numbers
The whole program, on one line.
90 days
Chargebacks stop
For the rest of the term, the administrator pays the refund.
$50,000
Benefit limit
Per qualifying loss. A ceiling on the waiver, not a payout.
$1,000
Deductible assistance
Included in the base program. No surcharge buys it.
Run your chargeback numbersSee what your current GAP program takes back each year.
The case for GAP
One of these problems is your customer’s. The other one is yours.
Longer terms, higher advances, and rolled-in negative equity have widened the distance between what a vehicle is worth and what is still owed on it. GAP has always answered that. What it has not answered, until now, is what happens to the dealership’s income eighteen months later.
Your customer’s problem you already know how to sell: a total loss is settled at actual cash value on the date of loss, a market number rather than the payoff, and the difference lands on a customer who no longer has the vehicle. That has not changed and this program covers it exactly the way any other GAP program would.
Your problem: the income doesn’t stay sold
A prorated refund claws back the unearned share of the contract, so the amount at risk starts at the full profit you booked and runs down across the entire term. The exposure is not a moment. It is the area under that line.
Days 0–90 — yours on either programDay 91 onward — the administrator’s on No Chargeback GAP
Vertical axis is the unearned share of your booked profit, which is what a prorated refund claws back. The shaded split is by time on a 72 month term. What it costs in dollars depends on when your cancellations actually land, which is what the pro forma below works out on your own numbers.
Early payoffs, refinances and the trade cycle are not rare events, they are the norm, and every one of them reaches back into income you booked at delivery — in a month you did not plan for it. That is the problem this program is built for, and the next section is how it solves it.
The 90-day structure
After 90 days, the refund stops being your problem.
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.
Traditional GAP
- The customer cancels, pays off early, refinances, or trades out.
- A prorated refund is owed to the lienholder.
- The dealership is charged back for it.
- The store loses some or all of the profit it booked at delivery.
No Chargeback GAP
- The customer cancels, pays off early, refinances, or trades out.
- The same prorated refund is still owed to the lienholder.
- After 90 days, the administrator pays it directly.
- The store keeps its original profit.
A GAP contract can be cancelled at any point in its life, and on a conventional program your exposure runs the entire length of that term. Here it stops at day 90 — which is where the overwhelming majority of the term, and of the chargeback risk, actually lives.
What changes, and what doesn't
No Chargeback GAP does not eliminate refunds. It eliminates your chargebacks once the policy passes the 90-day threshold. Your customer keeps every cancellation right they would have on any other GAP program, and the lienholder is still made whole. The only thing that changes is who funds the refund — and that is the entire product.
Your numbers
What chargebacks are costing you.
Move the sliders. Everything updates as you go. This estimates what your current GAP program takes back out of income you already booked, and what the No Chargeback structure does to that number.
Most stores run 18% to 20% once early payoffs, refinances and trades are counted.
A GAP refund is prorated, so what comes back is the unearned share. A cancellation 27% of the way into the term does not cost you 27% of the profit. It costs you 73% of it — $438 on every contract that comes back.
9.5
Chargebacks a month
114 a year, on contracts already delivered
$49,932
Clawed back a year
14% of the GAP income you book
$517
What a GAP contract is really worth
You book $600. This is what survives the tail.
At 50 GAP contracts a month and a 19% chargeback rate, about 9.5 contracts a month come back — roughly $49,932 a year out of income you already booked, in months you did not plan for it.
Conventional GAP
GAP income booked a year$360,000
Chargebacks a year114
Clawed back a year$49,932
Profit per contract, after the tail$517
Kept a year$310,068
No Chargeback GAP
GAP income booked a year$360,000
Chargebacks you still absorb23 a year
Clawed back a year$9,986
Profit per contract, after the tail$583
Kept a year$350,014
Estimated difference
$39,946 a year
Over five years
$199,728
A year of GAP income, booked and kept
KeptClawed back
What chargebacks cost, cumulatively
Conventional GAPNo Chargeback GAP
“But my cancellations come later than that.”
Annual cost at that point in the term
Later helps, but not much. A cancellation halfway through the term still returns half the profit, and half of a book this size is $34,200 a year.
How this is calculated
contracts × chargeback rate × profit × (1 − % of term elapsed) × 12
The last term is the one that matters. A prorated refund returns the unearned portion of the contract, so the earlier a cancellation lands, the more of your profit goes back. The No Chargeback column applies the same arithmetic to only the chargebacks that occur inside the first 90 days, because after day 90 the administrator pays the refund to the lienholder instead of charging the dealership back.
The five-year view assumes steady production: a store selling at a constant rate is absorbing chargebacks on contracts written in prior years at the same time it books new ones, so the annual figure repeats.
These figures are estimates. They are calculated from the inputs above and are not a guarantee of results. Actual chargeback experience varies by lender, product, term, customer behavior, cancellation timing, and the refund schedule in the specific GAP Addendum. Nothing here modifies a customer's cancellation or refund rights. Bring us twelve months of your own chargeback detail and we will replace every assumption on this page with your real numbers.
Keep a copy
Email me this analysis.
We will send these figures over and follow up with what your book looks like on a No Chargeback structure. No obligation, and nothing above is hidden behind this.
No Chargeback
Earned revenue that stays earned.
Pay off, refinance, trade out — on a conventional program each one reaches back into income you booked at delivery. Here they do not.
| What happens | Conventional GAP | No Chargeback GAP |
|---|---|---|
| Pay off, refinance or trade out early | Unearned premium charged back | Dealer retains earned revenue |
| Paper is sold to another holder | Varies by program | Coverage remains with the assigned financing contract |
This is a dealer-economics feature: it describes how your store’s earned revenue is treated, and it is the difference between a product line you can forecast and one you cannot. 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.
One pre-flight check before it goes on the menu
Some lender exclusions may apply. A lender may decline outside GAP, require its own, or cap what can be financed alongside it. Confirm the lender accepts the program while you are structuring the deal — not at funding, when the only fix is unwinding a signed contract.
Coverage
Limits of liability.
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.
| Program term | What it says |
|---|---|
| What triggers it | A qualifying total loss or unrecovered theft. A repairable collision does not trigger the program, and neither does a mechanical breakdown. |
| Benefit limit | Up to $50,000 per qualifying loss. |
| Deductible assistance | Up to $1,000 toward the customer’s physical damage deductible when a qualifying loss occurs. Included in the base program. |
| Territory | The United States, its territories or possessions, and Canada, including while the vehicle is being transported between covered territories. |
| Loss reported | Within 90 days of the settlement date. |
| Documentation submitted | Within 90 days. Reporting on time is not enough; the file has to be complete inside the window too. |
| Assignment | Coverage remains with the assigned financing contract. |
| Administration | The program administrator determines eligibility and claim outcomes. Elite FI Partners places the program and supports your store — call us first on any claim or eligibility question. |
The window is wider than it looks
The 90 days runs from the insurance settlement date, not from the date of the accident. On a disputed or slow claim the settlement can land months after the loss, and your customer’s window only opens then. It is the single most common reason a customer assumes they are out of time when they are not, and it is worth your desk knowing before the call comes in.
How a claim works
What a total loss costs a customer without it.
A customer with a $15,000 payoff loses the vehicle in a covered total loss. The carrier settles at actual cash value and withholds the deductible. Here is the whole conversation in six lines.
It comes down to two numbers, not seven lines: what the customer would owe, and what the program covers. That is why GAP penetration holds up even in price-sensitive stores.
Two places the limits actually bind
Where the $1,000 stops. Deductible assistance is capped at $1,000. A customer running a $2,500 deductible to hold their premium down keeps the excess — worth surfacing, because high deductibles are common and most customers have never connected the two products.
Where the $50,000 ceiling binds. “Up to $50,000 per qualifying loss” clears almost every retail deal comfortably. Where it binds is the high-payoff, heavily negative-equity, long-term contract: a large truck or a highline unit financed to 96 months with equity rolled in. Worth knowing which of your deals sit near that line.
Eligibility
The deals other GAP programs hand back to you.
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.
None
Mileage restriction
20
Model years
96
Months, max term
Both
New & used
The gap is widest in years one through three. A 96-month contract stretches those years across a balance that is coming down slowly, which is precisely the deal the customer is most likely to be upside down on, and precisely the one this program will still write.
Coverage is not available for
| Category | Vehicles |
|---|---|
| Excluded makes | Aston Martin, Bentley, Ferrari, Lamborghini, Lotus, Maserati, Rolls Royce, Yugo |
| Excluded unit types | Recreational vehicles (RVs), boats, ATVs, snowmobiles, motorcycles |
| Excluded uses & body styles | Limousines, taxis, rental vehicles, cargo vans, box trucks, dump trucks, semi trucks, tow trucks, utility trucks |
| And | Other vehicles excluded under program guidelines. Vehicle eligibility is subject to administrator approval and contract terms. |
Writing powersports, marine or RV?
Those units are excluded here — this is an automotive product. GAP for those lines comes from a separate program. Ask us and we will place it.
Optional surcharges
Branded titles and commercial use, written on purpose.
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.
| Option | What it does | Detail |
|---|---|---|
| Deductible Assistance | Base benefit — included | Up to $1,000 on the customer’s physical damage deductible when a qualifying loss occurs. |
| Salvage Vehicle | Extends eligibility — surcharge | Qualifying vehicles with salvage or rebuilt title history, when selected at enrollment. A branded title is normally an automatic decline, because actual cash value after a rebuild is unpredictable and that value is the entire basis of a GAP claim. |
| Commercial Vehicle | Extends eligibility — surcharge | Qualifying vehicles used for approved commercial purposes: the contractor’s pickup, the service company’s sedan, the unit titled to a business. |
| GAP Plus | Adds a benefit — surcharge | An additional $1,000 credit toward the customer’s replacement vehicle following a qualifying total loss, on top of the waiver and the deductible assistance. |
GAP Plus is a retention product, not a coverage upgrade
A total loss is the moment a customer is most likely to leave: no vehicle, an unpleasant payoff conversation, and every other store a phone call away. GAP Plus puts a thousand dollars on the table at exactly that moment, in your name — a reason to call you first, and to buy GAP again. The credit applies when the customer finances a replacement vehicle and is subject to eligibility requirements and contract terms, with the qualifying condition set by the GAP Addendum. We pin that down for your program before it goes on a menu, so nobody at your store promises a customer $1,000 that isn’t there.
Two rules that cost deals when they are missed
Where commercial use stops. The Commercial Vehicle surcharge extends approved commercial use. It does not reopen the ineligible-vehicle list. Cargo vans, box trucks, dump trucks, semi trucks, tow trucks, utility trucks, taxis, limousines and rental vehicles are excluded vehicles, regardless of who drives them.
Surcharges are selected at enrollment. Commercial Vehicle, Salvage Vehicle and the GAP Plus credit all require selection and payment of the applicable surcharge at enrollment — not at claim time, and not six months later. On the two eligibility surcharges, missing it can mean the vehicle was never eligible at all.
Why Elite FI
A product change is easy. Getting paid on it is the work.
Swapping a GAP program takes an afternoon. Moving penetration, holding gross, and building a menu presentation your team delivers the same way every time takes a partner. That is the part we do.
Menu & process integration
No Chargeback GAP drops into your existing menu and F&I process without an operational rebuild. We set the structure, the presentation order, and the word track before it goes live.
Adaptive Training
Your team gets the No Chargeback GAP course in our training portal — limits, eligibility, the surcharge rules and the claim clocks — with a certificate on an 80% pass. Product knowledge is what holds gross.
Reinsurance & reserves
Retained revenue is only worth what you do with it. We build and administer the ownership structure — CFC, DOWC, retro — and report on it monthly.
Performance reporting
Penetration by make, model and mileage band, loss ratios, earned reserve, and what is actually available to withdraw. You see the book, not a summary.
Explore the full F&I product slate, finance manager training, and dealer reinsurance.
FAQ
Frequently asked questions about No-Chargeback GAP
What is No-Chargeback GAP?
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.
How does the no-chargeback feature work?
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.
What happens if the customer pays off, refinances, or trades out early?
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.
What happens if the paper is sold to another holder?
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.
Do lender exclusions affect No-Chargeback GAP?
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.
Does the customer still receive GAP protection?
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.
Why is the 90-day structure important for dealers?
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.
How much do GAP chargebacks actually cost a dealership?
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 $600 of profit per contract, that is roughly $50,000 a year coming back out of income already booked. Use the chargeback pro forma on this page to run it on your own numbers.
What is the benefit limit on No-Chargeback GAP?
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.
What vehicles are eligible?
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.
Can a salvage or rebuilt title be covered?
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.
How long does a customer have to file a claim?
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.
Is No-Chargeback GAP difficult to implement?
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.
Important disclosures. GAP protection is optional, is not insurance, and is never required to buy, lease, or finance a vehicle. It is an addendum to the finance or lease agreement. Coverage availability, benefits, and exclusions vary by state, and certain lender exclusions may apply. This page describes the No Chargeback GAP program as stated in the administrator’s published program materials; the signed GAP Addendum is the authority for complete terms, conditions, limitations, exclusions, and eligibility requirements, and the program administrator determines eligibility and claim outcomes. The 90-day threshold described here governs dealer chargeback exposure and does not limit a customer’s cancellation or refund rights, which are set by the Addendum and by state law. Figures shown in the claim example and in the chargeback pro forma are illustrative estimates only and are not a guarantee of results. Elite FI Partners is an agency and does not administer claims. Not legal advice.
Ready when you are
Two ways to start.
Set your store up yourself, or have us walk you through it first. Either way you start in the same place.
Do it yourself
Get set up on No-Chargeback GAP.
Answer a few questions about the store and pick the products you want on your menu. We open the accounts and send the paperwork. No call needed to get moving.
Talk it through
Let us look at what your current GAP program charged back last year.
Bring us twelve months of your chargeback detail and we will show you what the same book looks like on a No Chargeback structure, and what it would have meant to your F&I statement.