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GAP Coverage

Discussion in 'Car Sales, Dealers, Repairs, Lemon Law' started by ryfly, May 15, 2018 at 8:15 PM.

  1. ryfly

    ryfly Law Topic Starter New Member

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    Jurisdiction:
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    Hello,

    I purchased a used vehicle in New York in 2011. I was involved in an accident and the vehicle was a total loss and denied GAP leaving me responsible for $7000. I have a retail installment contract "gmac flexible finance plan" with the DEALER and on the reverse side it states "If the vehicle is a total loss because it is confiscated, damaged, or stolen, you will not be liable for the GAP amount". However, I also have a SANTANDER/BANK GAP waiver that I also signed.


    Can someone help me out with this?...I feel that my original contract with the dealer should cover the difference.


    Thanks.
     
  2. mightymoose

    mightymoose Well-Known Member

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    I suspect you will need someone who can review the documents with you.

    What is the language of the additional waiver you signed? Are you saying that you refused GAP coverage to begin with?
     
  3. adjusterjack

    adjusterjack Super Moderator

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    No, you have the installment contract with GMAC, not the dealer.

    So who was it that denied the GAP coverage? GMAC? Or?

    Well, what does that say and why did you sign it?
     
  4. ryfly

    ryfly Law Topic Starter New Member

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    Basically the insurance company said I had no GAP.

    The retail installment contract / GMAC Flexible Finance plan that names me as the buyer and the creditor as the DEALERSHIP. It says nothing about the bank that actually financed me. On the reverse side of that contract it reads:

    " If the vehicle is confiscated, damaged, destroyed, stolen, or missing. You agree to pay us all you owe under this contact even if the vehicle is confiscated, damaged, destroyed, stolen, or missing. HOWEVER, if the vehicle is a TOTAL LOSS because it is confiscated, damaged, or stolen, you will NOT be reliable for the gap amount."

    I signed it because why would i need to purchase gap if the other contract already states I'm covered in the event of a total loss.

    This contract is the BANK letterhead and basically reads " Gaurenteed Asset Protection Waiver"
     
  5. mightymoose

    mightymoose Well-Known Member

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    I read that to mean that YOU are not responsible for the GAP amount. The bank would receive that amount from another source.

    I think you misunderstood the language of the contract.
     
  6. ryfly

    ryfly Law Topic Starter New Member

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    So you do or don't think I'm responsible for the balance?

    How should I proceed?

    Thanks!
     
  7. adjusterjack

    adjusterjack Super Moderator

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    Take all your documents to an attorney.

    I don't think anybody here can help you without reading all of the documents in full.
     
  8. zddoodah

    zddoodah Well-Known Member

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    As phrased, you are saying that "the vehicle . . . denied GAP." Obviously, that's not possible, so what did you really mean to say here?

    Also, out of curiosity, what sort of vehicle did you buy used in 2011 (seven years ago), and how much did you pay for this vehicle such that the loan balance is still - seven years later - $7,000 more than the vehicle's current value? I've never heard of a loan on a used vehicle for a period longer than seven years.

    I doubt that the dealer is actually the other party to this contract.

    And the waiver says what?

    What insurance company?

    This is self-contradictory. It also is presumably not a correct quote because you have a period after the word "missing," which makes the first sentence an incomplete sentence. While it's not unheard of for a form contract such as this to have bad grammar, it's fairly unlikely. In any event, I'm guessing that there is other language that would lend context to this quoted language.

    Huh? First you told us that this is a GMAC form contract, but now you're saying that the contract is on some bank's letterhead. Makes no sense at all.
     
  9. ryfly

    ryfly Law Topic Starter New Member

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    What type of attorney should I seek?..Sorry I've never had to use one before.

    Thanks!
     
  10. ryfly

    ryfly Law Topic Starter New Member

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    ------------------------------

    The vehicle was denied gap. I was young and purchased the vehicle for 72 months at a ridiculous 17% interest right and i deferred a few payments. The vehicle was totaled about a year ago and just haven't tried to do anything with this until now. I contacted a few attorneys in the beginning but they were asking a lot.

    The retail installment loan lists my name as the buyer, and the dealers name and address as the creditor (seller name and address). This is the contract that states i would not be responsible for the gap amount.


    The separate waiver that i signed has the banks letter head and says asset protection waiver and that i declined guaranteed asset protection (gap)

    The insurance company was Progressive.

    That was the direct quote. I will attach a picture of it.

    There is basically TWO contracts. One Contract between me and the dealer which basically shows the cost of the purchase and what not. Then there is another waiver form that i signed stating that i decline asset protection with a Santander letter head.
     

    Attached Files:

  11. adjusterjack

    adjusterjack Super Moderator

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    Any attorney who handles business matters. Attorney firms often have many attorneys so all you have to do is call up and ask which one does what you need done.
     
  12. mightymoose

    mightymoose Well-Known Member

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    If you did not purchase GAP insurance then you are responsible for the balance.

    I believe you may have misunderstood the language of the contract which led you to decline GAP.
    With GAP when the vehicle is a total loss YOU are not responsible for the GAP amount. The insurance will cover that, if you purchase it.
     

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