A car’s value drops the moment you drive it off the lot — but your investment doesn’t have to. A Depreciation Protection Waiver (DPW) helps you recover lost value if your vehicle is stolen or totaled, putting real money back in your pocket.
What is DPW?
- DPW protects your vehicle’s original value - not just what it’s worth after depreciation.
- If your car is declared a total loss, DPW pays the difference between the vehicle’s value when you enrolled and the loan balance at the time of the loss, up to your selected benefit amount.
- In short: You keep the equity you’ve built, even if the unexpected happens.
Real-Life Example
You enrolled in DPW with a $10,000 benefit on a new car valued at $32,000. A year later:
Your loan balance:
$26,000
(At the time of loss)
DPW payout:
$6,000
Difference between loan balance and value of car at time of purchase
Insurance payout:
$27,000
(current market value)
You walk away with
$7,000
Your $6,000 payout from DPW plus the extra $1000 from your insurance payout
Where these numbers come from:
- Insurance pays your lender first.
- DPW then uses your benefit to reduce any remaining loan.
- Any unused DPW benefit is paid directly to you.
- In this example, DPW lowers your loan by $6,000 and you receive $7,000 in cash.
When Does DPW Make Sense?
DPW is especially valuable if:
-
You financed less than 80% of your vehicle’s value
Your equity is at risk if the car is totaled or stolen -
You made a large down payment, trade-in, or rebate
DPW protects that built-in equity from being lost to depreciation
What’s the Cost?
DPW starts at just
$744.00
A one-time cost that can be included in your loan.
For many members, it’s a small price to protect a major investment.
Want to Learn More?
We’re here to help you protect what matters most.
