Dealership Corridor - Dealership Corridor

How are You Profiting from Addressing Subprime Consumer Needs?

Post author By efgmarketing
Post date May 19, 2015

Contributing Author: John Stephens, Senior Vice President, Dealer Services, EFG Companies

As the nation continues to recover economically, we’ve seen the subprime market steadily expand. The debate rages on whether to slow or halt this expansion before a subprime bubble forms. Be that as it may, more people who experienced hardship over the last few years are returning to dealerships looking to replace their car, or get into a car for the first time.

For dealers, it’s easy to gain distance from the circumstances that drove more people into the subprime space and to only focus on numbers like PRU, penetration, sales volume, etc. But, as you evaluate your dealership’s future, it’s time to step back and take a deeper look at what consumers are dealing with.

Yes, the unemployment rate has dropped, but that does not mean everyone who lost their job in the recession have returned to a comparable position. The most recent report from the Bureau of Labor and Statistics states that 6.6 million Americans are classified as “involuntary part-time workers” – those working part-time jobs due to economic reasons.

Tags EFG, EFG Companies, Hyundai Assurance, John Stephens

F&I Featured

Dealer Marketing Magazine: Drive Revenue and Build Loyalty Through Improved F&I Product Administration

Post author By efgmarketing
Post date May 11, 2015

Contributing Author: Ken Overly, Vice President, Operations, EFG Companies

If you follow industry trends, you probably expect the vehicle sales momentum of the past few years to continue through 2015. The first quarter started strong, with year-over-year sales up 13.7% in January, according to Autodata. The market will level out eventually, however, and smart dealers are utilizing the increased foot traffic to turn new customers into repeat customers.

While this starts within the dealership with service incentives, referral campaigns, etc., cultivating repeat business also extends into the F&I space and the customer experience with product administrators. Customers associate the selling dealership with the vehicle ownership experience . . . and F&I product administration. Service provided by the F&I product provider that reflects the dealership’s high service standards fortifies the customer’s relationship with the business.

Good experience with an F&I product goes beyond claims paid. It extends to customer service provided to your customers and your service center. Think of your own experience with call centers. The ones you hate are those that keep you on hold too long, don’t address your questions, or keep transferring you between departments. Good customer service includes answering calls immediately, listening to customer concerns, and responding to all questions politely.

Tags ASE, Benchmark Portal, claims, Dealer Marketing Magazine, EFG, EFG Companies, F&I, Finance & Insurance, Ken Overly, product administrator

Compliance F&I

Are You In Control of Your Profit Potential?

Post author By efgmarketing
Post date May 6, 2015

Contributing Author: Karen Klees, Certified Consumer Credit Compliance Professional, EFG Companies

If you’ve been paying attention to industry news, you probably know about the Federal Trade Commission once again setting its sights on add-on products. While large industry players expected this on the heels of the CFPB’s increased oversight into auto lending practices, many dealerships looking to make up for lost dealer reserve with the sale of F&I products are looking to tighten up their policies and procedures.

If you haven’t already begun re-evaluating your compliance procedures, now is the perfect time! While there are many elements to consider as you review your current policies and procedures for your existing product offerings, there is an upside. When sold in a compliant manner, F&I products provide dealers the ultimate control in their profit potential.

This being said, applying compliance standards and scrutiny to your policies and procedures is growing in importance. A recommended starting point, as you evaluate your product offering, is to ask a simple question: Do your products’ benefits fulfill a real and mathematically calculable customer need?

Starting with this premise, here is a checklist to perform due diligence:

Tags AFIP, ASE, CFPB, Compliance, Consumer Financial Protection Bureau, consumer protection products, EFG, EFG Companies, F&I, F&I products, Finance & Insurance, Karen Klees