point of Sale Offerings
Protection products that help mitigate loan risk at origination while creating added value for borrowers and new non-interest income opportunities for your institution.
Protection That Works at the Moment It Matters Most
Loan performance can be affected by events that happen long after closing. A total loss, major mechanical failure, or accelerated depreciation can leave borrowers financially exposed and lenders facing balance shortfalls. Integrating protection products directly into the origination process helps reduce these vulnerabilities before they impact your portfolio. TEJ Agency structures point-of-sale programs that align with your lending workflow, compliance requirements, and long-term risk management strategy.
Guaranteed Asset Protection (GAP)
When a vehicle is declared a total loss, standard insurance settlements may not fully satisfy the remaining loan balance. That difference can create financial strain for borrowers and charge-off exposure for lenders. Guaranteed Asset Protection (GAP) helps cover the shortfall between the insurance payout and the outstanding balance, reinforcing borrower stability and protecting institutional performance.
vehicle Service Contracts (VSC)
Unexpected repair costs can quickly disrupt a borrower’s financial stability. Vehicle Service Contracts (VSC) help cover major mechanical expenses, reducing the likelihood that costly repairs interfere with loan repayment. By offering VSC at the point of sale, lenders provide practical protection that supports borrower confidence and promotes more consistent payment behavior.
Depreciation Protection
Vehicles can depreciate faster than borrowers anticipate, especially in the early years of ownership. Depreciation Protection helps address equity gaps that may develop due to accelerated value loss. This additional layer of coverage enhances borrower security while supporting stronger portfolio positioning for your institution.
Designed to Complement Your Lending Process
Effective point-of-sale offerings must integrate seamlessly without slowing approvals or overwhelming staff. TEJ Agency supports implementation with clear documentation, structured training, and compliance-focused program management. The result is a consistent framework that enhances loan protection while maintaining operational efficiency.
Frequently Asked Questions
What are point of sale offerings in auto lending?
Point of sale offerings are protection products presented at the time a loan is originated. They are designed to reduce lender exposure to loan balance shortfalls or ownership-related financial risks while providing borrowers with added protection.
How does GAP coverage protect lenders?
Guaranteed Asset Protection (GAP) helps cover the difference between an insurance settlement and the remaining loan balance after a total loss. This reduces potential charge-offs and helps stabilize portfolio performance.
Do Vehicle Service Contracts improve loan performance?
Vehicle Service Contracts (VSC) can reduce financial stress caused by unexpected repair costs. When borrowers are protected from large mechanical expenses, they are more likely to maintain consistent loan payments.
What is Depreciation Protection and why does it matter?
Depreciation Protection addresses rapid vehicle value loss that may create equity gaps. By reducing financial exposure tied to depreciation, lenders strengthen overall loan quality and borrower confidence.
How are these programs implemented within a financial institution?
TEJ Agency works with your team to integrate protection products into your existing lending process. Implementation includes structured documentation, staff training, and compliance-aligned program support to ensure consistent execution.
