GAP Waiver

A GAP waiver is a debt cancellation product offered by lenders, particularly credit unions. If a financed vehicle is totaled or stolen, the waiver cancels the remaining loan balance above the insurance settlement. Unlike GAP insurance, a GAP waiver is a lending product and is regulated differently.

When a customer's financing comes through a lender offering a GAP waiver, the F&I team should understand how it compares to dealer-offered GAP insurance in terms of cost, coverage, and claims process to position F&I products appropriately.