According to ISR economist, Richard Curtin, Director of the Thomson Reuters/University of Michigan Surveys of Consumers, American consumers have become much more optimistic about future economic prospects. In fact, they have become so optimistic that most economists think the economy is incapable of delivering the rapid pace of growth consumers expect.
What does this mean?
This means that while consumer spending is up for the moment with increases in consumer credit and personal disposable income, as the fiscal cliff looms, spending can be cut short dramatically. Even with personal income slowly rising, people are still searching for ways to save money. Coupon clipping became a necessity during the recession and consumers today pay much more attention to competing discounts.
The dealerships and financial institutions that survived the recession and are positioned to thrive today are the ones who took the position that cars can’t sell themselves. These dealers and financial institutions understand that gaining love and trust from their customers directly translates to increased revenue with fewer drop-offs in service and increased repeat vehicle loans.
For this reason, lenders and dealers alike are working to give customers more for their money and build stronger relationships with bundled F&I products. Bundling differentiates your dealership or lending institution among competitors by demonstrating that:
- you understand your customers’ needs and concerns; and,
- you are willing to build trust and loyalty.
In doing so, you generate the opportunity to gain greater income with upsell opportunities.
With over 35 years in consumer finance, EFG Companies, knows how to build profitable relationships with customers by giving them another way to save. EFG has developed several F&I products that can be bundled or sold separately. Two of the most successful products include Drive Forever Limited Lifetime Powertrain and WALKAWAY®, the program behind the award-winning Hyundai Assurance.
By saving their customers money and providing quality service with EFG, dealerships and financial institutions are primed to make their customers, customers for a lifetime.