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Enterprise Financial News – Volume 2

DS Cover PageGet a new perspective on how to maximize your dealership profitability while staying compliant with the experts from EFG. With Enterprise Financial News Magazine, you always know the latest retail auto industry trends, and understand the potential effect of ongoing compliance initiatives on your business.

Download the second volume of Enterprise Financial News Magazine.

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Economy F&I

Post-recession consumers are primed for F&I products. Are you taking advantage of this trend?

Gabe-Aldrete-Blog-HeadshotWe have a paradox! More consumers are returning to the dealership to get out of their old vehicles; yet, there are more decade-old cars on the road today than since the depths of the recession in 2009.

If you’ve been following the news for the past two years, or even just the past month, there is not a doubt in your mind that the economy is improving and consumers are returning to dealerships. Both new and used car sales are up, and lenders across all credit tiers are seeing an uptick in loan volume.

According to the latest “Automotive Market Trends” analysis from Experian, the percentage of vehicles on the road predating the 2001 model year has reached its highest level since 2009. In fact, vehicles in that age group made up more than 28.3 percent of all vehicles on the road. To put this in perspective, before the recession, in 2008, that age group only made up 22.1 percent of vehicles on the road.

It’s understandable that during the worst of the recession, consumers held off on making big purchases like vehicles. With mass layoffs and companies filing for bankruptcy left and right, everyone was concerned about jobs and economic stability.

But now that the economy is expanding, shouldn’t consumers be trading up for a newer model?

According to Melinda Zabritski, Experian Automotive’s senior director of automotive credit, “While the growth in early model vehicles on the road is slowing, getting the most out of the vehicle they purchase still appears to be top of mind for consumers.”

Everyone knows that after the recession F&I managers were faced with a more informed and demanding consumer. But what few have taken into consideration is that this could be a good thing. With consumers hyper-vigilant about stretching their dollars, and getting more value from the companies with which they choose to do business, dealerships and lenders have the opportunity to create lasting relationships by aligning with their needs.

The consumers sitting across from the F&I manager know what it takes and the difficulties involved in maintaining older model vehicles. Imagine talking to a consumer who has dealt with three or more costly vehicle repairs within a single year. While they are concerned with current-model dependability, they still expect to keep their vehicles longer than historically normal.

By structuring your F&I products to meet their current needs, you can significantly enhance your dealership’s brand and generate lasting consumer relationships. Picture the relief on a consumer’s face when you tell them that your powertrain warranty will cover some of the most expensive repairs that could have set them back for months with their previous vehicle; or your vehicle service contract comes with roadside assistance so they’ll never be stranded again.

With their relief also comes increased profits for your dealership as well as the opportunity to build a lasting relationship for repeat business. With almost 40 years of experience in structuring successful consumer protection products, EFG Companies knows how to leverage consumer trends to successfully impact your business. Find out how today!

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EFG Companies

EFG Announces Number One National Ranking

Automotive News lists EFG Client, Bob Moore Auto Group, as leader of top 25 U.S. auto groups-

bob moore logoEFG Companies, the innovator behind the award-winning Hyundai Assurance program, was recognized today by Bob Moore Auto Group as the foundational reason for their Automotive News ranking as the national leader in F&I revenue per retail unit (PRU) among the top 125 U.S. dealership groups.

The auto group not only carries a full portfolio of EFG’s F&I products, but also relies on the innovator for strategic services, such as compliance; reinsurance and risk management; sales and F&I training; F&I development; talent recruitment; pay plan development; full claims administration; and, technology services such as e-contracting and remittance.

“We truly value our strategic partnership with EFG, which has enabled us to offer our customers valuable products that protect them from the costs of unexpected vehicle repairs, and helps preserve the value of their vehicle over time, “said Curtis Hayes, Chief Financial Officer, Bob Moore Auto Group.   “EFG’s objective, professional counsel has enabled us to evolve and strengthen our business processes with innovative solutions and products, and their engagement model is not replicable by any other product provider, in my opinion.”

EFG built its reputation on delivering products that provide valuable protection to the consumer, fostering greater customer loyalty while increasing income opportunities for the dealer.  The company continues to raise the bar on delivering value to their clients.  Earlier this year, EFG was recognized as the only product provider of size to AFIP certify its entire field team.  The company was also awarded the Blue Seal of Excellence by the National Institute of Automotive Service Excellence – again, the only product provider to gain this recognition.

“Our engagement with Bob Moore Auto Group has pushed EFG’s innovation, and inspired us to set very ambitious targets that have translated into providing even greater value to our clients across the board,” said John Stephens, Senior Vice President of EFG Dealer Services.  “Many product providers go into dealerships with the number one goal of selling product, and secondary goal of serving as a strategic partner.  Our philosophy and model is just the opposite.  If we are providing valuable council and business insights that affect our clients’ entire operation, then the product production level should take care of itself.  I can tell you from having served as a general manager and general sales manager for more than 15 years that EFG’s model delivers an extremely unique value proposition to the client.”

EFG has additionally developed several proprietary technology platforms in its quest to be the most effortless and efficient third-party administrator in the industry.  Working directly with their clients, they have developed proprietary contract automation; online cancellation quoting and cancelling; and, the EFG’s Parts Wizard that identifies the highest quality parts from suppliers across the nation at the lowest price in real-time.  Its client portal, EFG DRIVE, is set to launch in Q4 of this year.