Author: efgmarketing

Categories
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!

Categories
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.

Categories
Dealership Training

Don’t leave your service drive out of your sales cycle!

Contributing Author: Steve Roennau Vice President Compliance EFG Companies
Contributing Author:
Steve Roennau
Vice President
Compliance
EFG Companies

What is synonymous with General Motors and Toyota? Recall, right?

Four years ago, Toyota underwent a recall crisis on par with General Motors today. Now, Chrysler is also under investigation for faulty ignition switches. Are these the only car manufacturers who’ve felt the strain of a recall crisis? No.

In the 70s, Ford issued a staggering 21 million vehicle recall for its infamous “park-to-reverse” automatic transmission defect. In the 80s, Audi dealt with its own unintended acceleration defect with a series of car recalls for its 5000 model that nearly drove it out of the American market.

Do consumers still buy these cars? Yes.

In fact, according to General Motors, the ignition switch recalls have had no significant impact on new model sales. What does this mean for dealerships? Opportunity!

No matter their reason for visiting the service drive, when consumers bring their vehicles back to the dealership, there is an opportunity to convert those customers to a new car buyer. In fact, the more times a customer returns to a dealership for service, the more likely they are to make their next vehicle purchase with that dealership. Between 2010 and 2012, the percent of customers who were converted from used cars to new cars increased from 17 percent to 19.3 percent. As consumer income continues to increase, this rising trend can also be expected to increase.

In order to truly maximize this opportunity, dealerships can make small adjustments that create a big difference in capturing a greater share of wallet from this lucrative audience:

  • First, address your waiting area to ensure cleanliness and its appeal to both men and women. Remember that at least 50 percent of your service drive business is women, so double-check to ensure that available amenities are appealing to both audiences. In addition, outfit the waiting area with information on F&I products and monitors tuned to dealership and OEM videos.
  • Focus on making a good and lasting impression on new service drive customers by ensuring the service managers are adequately trained. Do they have a courteous and professional demeanor while providing efficient service?
  • Keep returning customers coming back by focusing on providing a positive experience each time they return to fortify the relationship.
  • Lastly, keep customer records accurate and up-to-date. Either the service manager can verify the information when first approaching customers, or the receptionist can when processing payments.

It’s that simple. Yet, many dealerships overlook this significant opportunity. With OEMs focusing on customer retention, dealerships need to fortify their service strategies both in sales and in their service drive. But, the customer experience doesn’t have to end when they leave. With accurate information in their CRM, dealerships can establish a contact campaign based on several different criteria including:

  • whether the customer is a recall customer or a regular service customer;
  • whether the customer is new to the dealership or returning; and,
  • if returning, how often they return and the age of their vehicle.

Rather than relying solely on the sales force approaching customers waiting for service, dealers can capitalize on customer retention by focusing on customer service and implementing a communication campaign designed to turn service drive customers into sales prospects.

In today’s market, the road to the sale is rarely a straight line. With almost 40 years of insight into the consumer mindset, EFG Companies knows how to turn your team into Top Performers. Along with our intense training curriculum and client engagement, our expert trainers can provide a full service-drive analysis, focusing on the efficiency of the department and their sales volume. EFG’s consultative approach to marketing equips dealerships with the consumer insights and marketing tools needed to increase store traffic, drive customer loyalty, and differentiate their business. Contact EFG to get started today.