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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”.
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)
Let me know if you’d like complete results of the survey, or if you’d like to set up a call with Protective to learn more about the results and how they impact dealer margins, especially given the declining pace of sales.
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.