There are many benefits to purchasing a pre-owned Mercedes-Benz car. Our team at Mercedes-Benz of Annapolis is sharing everything you need to know about pre-owned vehicle ownership, like whether or not to purchase GAP insurance.
What is GAP Insurance?
Before you can decide if GAP insurance is right for you, it’s useful to know what it is. It stands for Guaranteed Asset Protection, and covers the distance between traditional insurance coverage and the actual value of this vehicle. This can be very useful in the event that your vehicle is stolen or totaled.
Who Needs GAP Insurance?
GAP insurance is often required or recommended for leases, but it’s not the right choice for every pre-owned vehicle. The primary reason to consider purchasing GAP insurance for a pre-owned car is if your vehicle will encounter steep depreciation, which is why it’s recommended for drivers with cars that are three years old or newer.
You may also want to consider GAP insurance if you owe more on your vehicle than it’s worth, have a long financing term length, or put down an amount smaller than 20% of the car’s value for its down payment. GAP insurance will help to protect you against owing a significant amount of money if the car is stolen or totaled.
Test-Drive Pre-Owned Mercedes-Benz Vehicles in Annapolis, MD
No matter what your pre-owned vehicle needs might be, Mercedes-Benz of Annapolis is here to help. Visit our dealership to learn more about your GAP insurance options, and to take home a pre-owned vehicle you love today.
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