GAP Coverage

[ryfly]

Jurisdiction

New York

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.

 

[mightymoose]

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?

 

[adjusterjack]

I have a retail installment contract "gmac flexible finance plan" with the DEALER and on the reverse

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

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

However, I also have a SANTANDER/BANK GAP waiver that I also signed.

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

 

[ryfly]

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?

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"

 

[mightymoose]

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.

 

[ryfly]

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.

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

How should I proceed?

Thanks!

 

[adjusterjack]

How should I proceed?

Take all your documents to an attorney.

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

 

[zddoodah]

the vehicle was a total loss and denied GAP leaving me responsible for $7000.

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 have a retail installment contract "gmac flexible finance plan" with the DEALER

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

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 . . . GAP waiver that I also signed.

And the waiver says what?

Basically the insurance company said I had no GAP.

What insurance company?

" 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."

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.

This contract is the BANK letterhead

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.

 

[ryfly]

Take all your documents to an attorney.

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

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

Thanks!

 

[ryfly]

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.

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

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.

 

[adjusterjack]

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

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.

 

[mightymoose]

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

How should I proceed?

Thanks!

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.