Changing the game of vehicle total loss protection
March 2, 2019 - by Patrick Redo
Let’s say you just bought an awesome new car valued at $25,000. Because you are a super negotiator, you were able to talk down the dealer into a selling price of $22,000. And because you are a superior saver you put $7,000 down on that new car. And best of all, you acquired a $15,000 loan from allU.S. Credit Union to cover the rest.
Here’s the bad part. Two weeks later you are on your way to the grocery store and some irresponsible driver slams into your new car. Everyone is fine your car is severely damaged. Now what do you do?
Here is a typical scenario without Depreciation Protection
Obviously you have comprehensive insurance. Your car insurance company has valued your totaled vehicle at $20,000 (instead of $25,000 because it looses value as soon as you drive it off the car lot). So, they pay off your $15,000 car loan balance and send you a check for the remaining $5,000.
But here’s the problem. You only have $5,000 for a down payment, instead of $7,000 and you have to negotiate the deal all over again.
Here’s the scenario with Depreciation Protection
Obviously you have comprehensive insurance. Your car insurance company has valued your totaled vehicle at $20,000 (instead of $25,000 because it loses value as soon as you drive it off the car lot). So, they pay off your $15,000 car loan balance and send you a check for the remaining $5,000. (This sounds all to familiar, right? Here’s where everything changes).
In addition to your regular insurance, allU.S. Credit Union provided Depreciation Protection with your loan, which locked in the value of your vehicle at $25,000. Which means, your car will maintain its value for the lifetime of the loan. Let’s break this down. The equity in the car totals the $3,000 you were able to negotiate off the sale price, then there’s the $7,000 down payment. So that’s $10,000.
With the appropriate Depreciation Protection Policy, you would get $10,000, which means you have $15,000 to put down on a new vehicle.
The Depreciation Protection payout will never be more than the amount you owe on your loan. So, let’s say you have an accident several years after you purchase the car instead of in the first two weeks. You’ve made years of payments, so you only owe approximately $8900 on the car. That’s how much Depreciation Protection would pay you at the time of your accident.
Click the link for additional info. (https://www.youtube.com/watch?v=zLxyD3XB_yE)
To see if this coverage is right for you contact us for additional information and ask us about our upcoming auto loan campaign “Packing On The Perks”.
Topics
Changing the game of vehicle total loss protection
3/2/2019
Why Should I Refinance My Vehicle at allU.S. Credit Union?
5/26/2015
Save Money with a Fuel-Efficient Car
4/24/2015
Should I Buy or Lease?
3/26/2015
First Time Car-Buying Tips
2/25/2015
Is 0% Financing Too Good to Be True?
1/16/2015
What do you need to do to improve your finances in 2021?
1/1/2021
Protect Your Financial Health During and After the COVID Crisis
7/2/2020
What Can You Do With $20?
2/28/2020
BUILDING A SOLID FINANCIAL FOUNDATION
1/29/2020
What is your Financial Personality?
9/28/2019
Money Management Apps to help boost your finances
9/2/2019
How's Your Financial Vocabulary?
1/30/2019
BACK TO SCHOOL SEASON IS UPON US!
8/2/2017
How to Enjoy Your Summer Vacation Without Maxing Out Your Credit Cards
6/24/2017
CONFESSIONS OF A TAX GUY
3/29/2017
Make the Most of Your Financial Life
1/26/2017
Nine Strategies to de-clutter, organize accounts and manage your money
9/26/2016
Perks to Belonging to allU.S. Credit Union
4/27/2016
A New Card with Improved Security
3/29/2016
Tax Time: Prepare Smart and File Fast
2/24/2016
SET YOURSELF UP FOR FINANCIAL SUCCESS IN 2016
1/20/2016
Clean Up Your Finances for the New Year!
1/6/2016
Splurge Or Save? The Unlikely Budgeting Tip To Help You Stick With It
8/25/2015
Home Equity Loan vs. Home Equity Line of Credit - What’s the difference?
7/30/2015
Why Should I Refinance My Vehicle at allU.S. Credit Union?
5/26/2015
Save Money with a Fuel-Efficient Car
4/24/2015
Teach Your Children Financial Independence
4/24/2015
Should I Buy or Lease?
3/26/2015
Should You Consolidate your Debt Into One Low Payment?
1/28/2015
Spend Smart This Holiday Season
12/16/2014
Spring Clean your Finances
4/22/2014
Make the Most of Your Tax Refund
2/26/2014
How Do You Give Thanks This Year?
11/20/2020
Filipino American History Month
10/25/2020
allU.S. HOLIDAY SURVIVAL GUIDE
12/7/2019
Happy Thanksgiving from allU.S. Credit Union
11/27/2019
Discover Halloween Savings
10/11/2019
8 Holiday Tips to Get You Through the Year
12/11/2018
Happy Thanksgiving from allU.S. Credit Union
11/20/2018
Season's Greetings!
12/18/2017
How To Survive Black Friday and Cyber Monday Like An Ace!
11/15/2017
allU.S. Wishes You a Safe and Happy Holiday
12/19/2016
7 Ways to Avoid Stress this Thanksgiving
11/17/2016
Happy Holidays from allU.S. Credit Union
12/17/2015
Let’s Have Thanksgiving Dinner on a Budget
11/9/2015
Fun With Pumpkins: 5 Homemade Fall Decorations Using Everyone's Favorite Gourd
10/19/2015
Spend Smart This Holiday Season
12/16/2014
Pull Out All The Stops This Thanksgiving without Breaking Your Budget
11/21/2014
SHOULD I CUT THE CORD?
8/29/2020
Three Ways To Maintain Your Summer Financial Goals
7/20/2019
Tips for a Frugal Fourth of July
6/28/2019
Tax Identity Theft: Protecting Your Credit and Finances
4/22/2019
How to get the Best Deals Online
3/30/2019
PREPARING FOR THE HOLIDAYS
10/27/2018
Charging your phone in public? Watch that port!
9/1/2018
CAN YOU SPOT ME SOME CASH?
7/25/2018
Loyalty Loan Program
8/31/2016
Home Equity Loan vs. Home Equity Line of Credit - What’s the difference?
7/30/2015
Why Should I Refinance My Vehicle at allU.S. Credit Union?
5/26/2015
Save Money with a Fuel-Efficient Car
4/24/2015
Should I Buy or Lease?
3/26/2015
First Time Car-Buying Tips
2/25/2015
Should You Consolidate your Debt Into One Low Payment?
1/28/2015
Go Green - It's a no-brainer investment!
7/30/2014
TIPS TO THROW A PERFECT TAILGATE
9/28/2018
Coronavirus Update
3/26/2020
allU.S. Credit Union is proud to announce the launch of our new mobile banking app!
2/27/2018
Jazz Advanced Banking
1/17/2018
EQUIFAX DATA BREACH
10/24/2017
allU.S. – Your Most Trusted and Valued Financial Resource
10/20/2016
Moving a Hop, Skip & A Jump Away
5/20/2016
Celebrate International Credit Union Day with allU.S. Credit Union.
9/28/2015
allU.S. Vacation Discounts Promise Nothing But FUN This Summer
6/19/2015
Annual Update From The CEO
5/21/2015
Stress Free Banking At Home In your Briefs!
3/26/2015
allU.S. Moves Forward With Plans for New Branch In North Salinas!
10/23/2014
DISCOVER THE FREEDOM OF THE OPEN ROAD!
9/28/2020
A Message To Our Credit Union Family
5/18/2020
Make Your Home Equity Work For You!
3/27/2018
2017 Is The Year to See Change in Your Life!
2/20/2017
allU.S. Credit Union Announces the Grand Opening of its New Location in Salinas
7/21/2016
Celebrate International Credit Union Day with allU.S. Credit Union.
9/28/2015
allU.S. Vacation Discounts Promise Nothing But FUN This Summer
6/19/2015
Stress Free Banking At Home In your Briefs!
3/26/2015
allU.S. Credit Union Is Turning 1
8/25/2014