Automotive Digital Marketing

Professional Community for Car Dealers, Automotive Marketers and Sales Managers

Loading... Be Patient!

What Dealers Had To Say About 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)

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.

Views: 11

Comment

Oops... You need to stop "Lurking" on ADM and become a more genuine Automotive Professional by completing your membership registration. As a registered ADM Member, you can post comments, publish your own articles (be a star!) and start Forum discussions. Stop being an online "Peeping Tom" and JOIN ADM RIGHT NOW!

Join Automotive Digital Marketing

ADMPC is a Network for Car Dealers, Automotive Marketing, Advertising and Management Pros sharing Digital Strategies and Execution Tactics.

Please Consider Automotive Marketing Professional Community Sponsors

ADM Badge

Loading…

Based On Your Interests...

ADM Consulting, LLC

Onsite/Offsite Combination ADM Consulting & Coaching
Select the maximum amount you want to pay each month
$USD
Sign up for

Automotive Marketing Tools

Get ADM Toolbar

Click here to take the ADM Member Survey

Getting too many emails from ADM? Click mailbox below to control which types of alerts and updates you are sent......


Instagram

Top Automotive Marketing Forum Discussions

1. Confirm and Cultivate Your HVA

Posted by Garry House on August 17, 2017

2. Car Buyer Myth Busters from PERQ

Posted by Ralph Paglia on October 15, 2017

Share the Best Content w/AutoMarketing Community

© 2017   Created by Ralph Paglia.   Powered by

ADM Badges  |  Report an Issue  |  Terms of Service