What Dealers Had To Say About Their F&I Products

 

Protective Asset Protection, which operates dealer-owned warranty programs / F&I products (DOWC) for auto dealers, recently conducted an online survey presented to 1,500 auto dealer professionals in the U.S. Here are highlights of the results, which you may be interested in for a story:

 

When asked about the biggest challenge with their current F&I products, 29% of dealer respondents said both “too much of an administrative burden, and “doesn’t offer enough margin for the dealership”.

 

When asked why they don’t use a dealer-owned warranty product, 27% said it sounds too complicated for them. 24% said they don’t want to change from their current program. Another 21% said both “don’t understand how the program works” and “not sure how it would benefit their dealership”.

 

However…

 

Only 12% of dealers said more than 50% of their customers purchase a vehicle service contract from them; and only 6% said more than 50% of customers purchase an ancillary product, such as tire & wheel, appearance protection, windshield, key fob coverage.

 

(One of the benefits of a DOWC is greater margin for the dealer since they administer their own F&I programs and have more control over margin)

 

Protective Asset Protection

Protective Asset Protection provides vehicle protection plans, GAP, ancillary products, training and other F&I services through vehicle dealerships. Protective Asset Protection has been serving dealers for more than 55 years and currently provides products and services to automobile, marine, RV and powersports dealers. Protective Asset Protection is part of the financial services holding company, Protective Life Corporation.

Views: 19

Comment

You need to be a member of DealerELITE.net to add comments!

Join DealerELITE.net

About

DealerELITE created this Ning Network.

Blog Posts

One Simple Phone Tip to Better Handle "What Time Do You Close?" by Richard Keeney

Posted by Richard Keeney on October 17, 2017 at 2:30pm 0 Comments

Do you really know how your salespeople are answering this question:  “What time do you close?”…

Continue

Luxury Cars and SUVs Experience Higher Depreciation Rate

Posted by Black Book on October 17, 2017 at 11:34am 0 Comments

Welcome to this week's edition of Black Book Market Insights, with in-depth analysis of used car and truck valuation trends and insights straight…

Continue

3C's - The Correction (Remedy)

Posted by AWN INC on October 17, 2017 at 11:14am 0 Comments

The information that the technician provides the manufacturer is one of the most vital sources of…

Continue

de sponsor

Get Newsletter

dE Sponsor

© 2017   Created by DealerELITE.   Powered by

Badges  |  Report an Issue  |  Terms of Service