Redstone Federal Credit Union

10 | r e d f c u.o r g Prices for new and used vehicles are higher now than at this time last year, something anyone who has been car shopping recently knows. In fact, the average new vehicle loan amount increased 12% over the past two years – to $39,721 from $35,421, according to Experian Automotive. If you are financing your vehicle at these higher costs, you should consider adding GAP coverage. GAP, or Guaranteed Asset Protection, will cover the remaining amount on your loan if your vehicle is totaled or stolen. Your auto insurance company will pay the value of your car in a total loss, not what you owe on a car loan or lease. But if you owe more on your car than it's worth, GAP insurance can help bridge that gap. Here's an example: Your vehicle – which depreciates quickly once purchased – is financed, and you still owe $12,000 to the credit union. You are involved in an accident, and the car is declared a total loss. If your insurance claims adjuster determines that your car's actual value is $9,000, GAP insurance would cover the remaining $3,000 to pay off your loan. at's important because your loan doesn't go away just because your car is totaled or stolen. Financing extended ser vice agreements, dealer-installed options, or debt from previous auto financing could also increase your loan amount without necessarily increasing the value of your car. Welcome to the expensive holiday season! Money management isn't easy any time of the year, but can be even more challenging during this time. Can you break those budget-busting shopping habits? Yes, here's how! Make a plan. Set a budget and stick to it. Use a spreadsheet or app to track all your purchases. Decide in advance how much you'll spend on gifts, eating out, clothing, and entertainment. Focus on the long term. at $5 fancy coffee you purchase on your way to work may bring you joy, but the cost adds up quickly! If you make a pot at home instead, you could save $25 per week – adding up to $1,300 per year. Giving up immediate gratification can bring long- term benefits. Choose the cheaper option. Cook at home, stream the latest movie, and host a potluck instead of covering all the food and drinks for your holiday get-together. Don't follow your friends. Are you buying the latest gadgets or trendy, name-brand clothes because you're trying to keep up with friends or social media influencers? Choose spending habits that benefit you – not others! Let Redstone help you improve your financial wellness at: redfcu.org/financialwellness. GAP Coverage Can Bridge the Auto Loan Gap This Holiday Spend Less GAP products are offered through third-party insurance companies, are not Redstone Federal Credit Union ® products, and are not NCUA or federally insured. These products are not obligations of Redstone Federal Credit Union and are not endorsed or recommended by RFCU or any government agency. RFCU does not warrant, guarantee, or insure any service or product offered by any third-party insurance company. RFCU and third-party insurance companies are separate entities.

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