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JD Power Valuations - Monthly vs. Weekly

Used car prices have taken a very unusual path over the first half of 2021. In fact, wholesale auction prices finally showed their first weekly decline during the week ending June 20, after showing increases for 24 consecutive weeks.

This unusual pattern has led to some unexpected and sometimes inconsistent JD Power valuations. We have received a number of inquiries in recent weeks where valuations provided in VisualGAP did not match what was provided by a dealer or what lender may have pulled directly from JD Power site. The primary reason for these discrepancies is that JD Power / NADA now provides both Monthly and Weekly valuation updates. The introduction of weekly adjustments began in 2020 and now users can select Weekly or Monthly values when utilizing JD Power site. Please note that the valuations provided in VisualGAP are now based on the Weekly updates, as those provide the most current valuations available. If trying to match values from different sources, make sure that Weekly option is being selected.

We have also been asked which value will be used for Loan to Value LTV determination in the event of a GAP claim. Weekly values are available for historical valuations beginning with April 2020. Given this, we will use the Weekly value provide by JD Power for GAP waivers with inception dates of April 2020 or after and the Monthly values for those prior to April 2020.

GAP, Real People and Real Stories

Video Testimonials

We regularly get heartwarming stories of how your protection products made a real difference in peoples' lives. Let's spread the love! It's easy grab your smartphone, hit record and send it over to us. Every quarter, we will choose one institution's story for a $500 prize. And we also want to hear from your borrowers! Their video testimonials will be entered for a quarterly $500 prize with an additional year-end Grand Prize of $1000.

 

 

Click Here For More Details and to Upload Your Video

Exciting News for Clients with the Auto Advantage Program

Auto Deductible Reimbursement (ADR)

We have great news for all VisualGAP clients that provide complimentary Auto Deductible Reimbursement (ADR) benefits for their borrowers that elect GAP. Frost has made arrangements with the ADR Administrator to streamline the benefit claim process in the event of a Total Loss GAP claim.

If there is a Total Loss GAP claim and the borrower has the ADR benefit, Frost will automatically submit the needed information to the ADR administrator which will simplify the claims process and allow us to "coordinate benefits" to make sure that the program is delivering more value for you and your borrowers

In situations where the vehicle is damaged and not a Total Loss or a GAP claim results in a $0 benefit, the borrower should continue to be directed to https://www.assuranceplus.com/Claims to submit their benefit request.

NEW! In Version 4 - EasyQuote

Preview your new one-screen tool for creating quotes!
Every quote is made on one screen and seamlessly coordinates with VisualGAP® Presentations.

See how EasyQuote works for all of your quotes!
EasyQuote for GAP
EasyQuote for GAP and Warranty
EasyQuote for GAP, Warranty and Credit Insurance
View a video demo

VisualGAP® Training Schedule

Training

VisualGAP® offers online training sessions through GoToMeeting®. This is a very exciting way to re-train employees and train new hires on how to use VisualGAP®, and we believe it will have great benefits for everyone using the system. Here is a list of our up-coming Training Sessions:

Using VisualGAP®

How to use VisualGAP® - This training session will re-train employees or train new hires on how to use VisualGAP®.

Monday July 5 - 1:00 pm EDT
Wednesday July 7 - 11:00 am EDT
Monday July 12 - 1:00 pm EDT
Monday July 19 - 1:00 pm EDT
Monday July 26 - 1:00 pm EDT
Thursday July 29 - 11:00 am EDT

Monthly Remittance

This session will train the employee who handles your GAP monthly remittance how to reconcile and remit payment.

Wednesday July 14 - 2:00 pm EDT

Filing Claims

Basics of how GAP claims should be processed.

Thursday July 22 - 2:00 pm EDT

Contest Corner

GRAND PRIZE
prizes

You can win great prizes by entering our VisualGAP® contests! You will be awarded an entry into the contest each time you sell a GAP waiver. The more GAP waivers you sell through VisualGAP® the more opportunities you have to win.

You can enter to win by clicking on 'Update Profile' in the 'Contest Corner' tab and selecting "Yes, enter me in the VisualGAP® contests". Please make sure to check with management at your Financial Institution prior to enrolling in the contests. You can always change your selection by clicking on 'Update Profile' at a later date.

This is a win-win situation for both you and your Financial Institution. The more you sell the more opportunities you have to win, but you also help protect more borrowers and generate more fee income for your Financial Institution.

If your Financial Institution does not want to participate in Contest Corner, please call us at 888.753.7678 and we can turn off access to the current contests for all loan officers.

Marketing & Selling GAP with Confidence

GAP is a valuable and popular loan protection product that is designed to help protect auto loan borrowers and provide peace of mind. However, some recent industry news has highlighted the risk of sloppy marketing/sales tactics and reinforces the importance of marketing/selling GAP appropriately and accurately.

The following list of “Do's” and “Don'ts” will help ensure that your borrowers understand the product they are buying, and help keep your institution out of legal and regulatory hot water. Please share these best practices with your lending, marketing and compliance colleagues at your institution.

Download the list of “Do's” and “Don'ts”

TotalRestart Loyalty Membership Program

Frost has recently introduced an enhancement to our GAP program that can greatly increase the value of your GAP offering. Our new TotalRestart Loyalty Membership Program does more than just forgive a deficiency loan balance created by a theft or total loss. It helps borrowers replace their total loss vehicle with one similar to the one they originally purchased and financed with your Financial Institution.

Contact your local representative or email us to learn how you can significantly increase your GAP sales by adding clear value and benefits to your GAP offering. Additionally, increase loyalty after a total loss and ensure that the loan for the replacement vehicle ends up with your Financial Institution.

TotalRestart is available exclusively through VisualGAP®.

ALG Annual Residual Value Awards

Each year, ALG honors vehicle brands most likely to retain their value.

Visit the ALG website for the list of this year's award winners.

Letters of Guarantee (LOG) & Legal Jeopardy

How does the routine and common practice of signing a Letter of Guarantee with your borrower's physical damage insurance company become a legal nightmare for you? Simple. You signed up for it.

As is standard procedure, when a borrower totals his or her car, the insurance company sends the lien holder a summary letter and a document called a Letter of Guarantee (LOG). The Letter of Guarantee details what they will pay in return for releasing the title of the totaled auto. This letter is written by the insurance company and is, naturally, designed to protect their interests; however, it has the potential to jeopardize the interests, legal and financial, of you and your borrower──if you sign it!

Read here for details

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