Ohio’s latest budget, signed by Governor Mike DeWine on June 30, includes a significant measure impacting how Guaranteed Asset Protection (GAP), excess wear and use (EWU), and vehicle value protection agreements (VVPAs) are offered and financed in the state.
These new regulations are set to take effect on September 30, 2025.
Key Regulatory Changes and GAP/VVPA Opportunities
This legislative move, through House Bill 96 (HB96), is poised to unlock new opportunities for F&l product companies by formally defining and regulating EWU waivers and VVPAs.
Here’s what you need to know:
- Defining and Regulating EWU Waivers and VVPAs: HB96 will introduce new definitions and regulations for these products, providing clarity and potentially expanding their market.
- Ancillary Product Coverage for Leased Vehicles: Vendors of “motor vehicle ancillary product protection contracts,” often referred to as ancillary bundles, will now be able to offer coverage for certain types of damage to leased vehicles under a VVPA.
- “GAP Plus” Programs: The budget also permits “GAP Plus” programs. This means that providers of GAP waivers may now credit or waive a set amount towards the purchase of a new vehicle if the consumer’s current vehicle is deemed a total loss and cannot be recovered.
What This Means for Auto Lenders
These changes represent a forward step for the F&l industry in Ohio, opening new avenues for product offerings and potentially increasing consumer protection and satisfaction. Businesses should prepare to integrate these new provisions into their offerings and ensure compliance by the September 30, 2025, effective date.
Please contact your F&I Sentinel representative if you have any questions or require further assistance in ensuring your products meet the upcoming regulations in Ohio or elsewhere.
The information provided in this post does not, and is not intended to, constitute legal advice; instead, all information, content, and materials referenced are for general informational purposes only. Readers should contact their attorney to obtain advice with respect to any particular legal matter.
