EMS Automotive Group - Products

Defined or "Simple" GAP

"Simple" GAP provides the basic coverage of a traditional GAP program but has created a simple definition of Unpaid Net Balance that greatly helps to eliminate confusion and ambiguity. Our definition merely takes the number of original payments and divides it into the Amount Financed to determine a uniform payment of principle that will be applied to the GAP claim calculation. It doesn't matter what interest earning method was used or what APR was charged. It's that simple!!

Basic coverage provides up to 36 months GAP protection on loans up to 72 months for a maximum 125% LTV.

Additional coverage options include.

  • 150% LTV on both an individual loan and blanket or "blended" basis.
  • ACV option using just the Insurance Settlement less a deductible not to exceed $1,000 (No NADA)
  • Deductible Reimbursement not to exceed $1,000 to be paid in addition to the GAP settlement.
  • Minimum Claim Guarantee offering $500, $1,000 & $1,500 options.

Pay As You Go "PayGo" GAP

"PayGo" GAP has the exact same coverage as "Simple" GAP with the very important difference that the retail cost is not paid upfront or even from the loan amount. One modest deposit payment of $55 and the balance of the retail cost is paid over an installment plan chosen by the dealer, from as little as 3 payments to as many as 10 payments. It is also the dealer's choice whether they collect the installments themselves or have EMS provide this service. Either way the dealer has sold a full retail GAP product without having to find any room in the loan. Perfect opportunity for both a BHPH dealer trying to minimize its upfront costs and the independent dealer looking to maximize its F&I profits.

Stated Benefit GAP

Possibly the most creative of our GAP products. Stated Benefit allows the dealer or lender to pre-determine the amount of the GAP claim, from $500 to $3,500 in $500 increments. It allows the dealer or lender to select different dollar benefits on a per transaction basis. The truly creative part of Stated Benefit however is that the GAP settlement covers not just the outstanding loan amount but also any loss the dealer or lender might have suffered due to the early termination of the loan such as late fees, delinquent payments, pre-paid taxes, finance charges etc. even including miscellaneous out of pocket expenses. Stated Benefit is the only GAP program we know that protects the complete interests of both the borrower and the lender.

Note: Stated Benefit is only available on books of business that meet our minimum volume requirements. In addition to the GAP products detailed above Risk Sharing and Profit Sharing opportunities are available upon request.