The U.S. Department of Defense has changed its interpretation of a key part of the Military Lending Act (MLA) to allow dealerships to offer Guaranteed Asset Protection (GAP) to service members and their families. Now all military customers who finance a vehicle purchase can choose GAP coverage.
This stems from a December 2017 Interpretive Rule that sought to define the scope of vehicle and personal property financing exclusions. It clears confusion about how GAP coverage was classified and opens the door to valuable GAP product sales with military customers.
As of Feb. 28, GAP coverage is an option for military customers. This has long been a value-added option and it’s exciting to now offer it to all customers.