Category: EFG Companies

Categories
EFG Companies

What a New CFPB Director Means for Auto Dealers

On September 30, the U.S. Senate confirmed a new Director of the Consumer Financial Protection Bureau (CFPB). Rohit Chopra, formerly with the Federal Trade Commission, brings an enforcement mindset to his new role.

Chopra, 39, will serve a five-year term at the helm of the Bureau. He has a long history with the organization, which was created in the aftermath of the financial crisis of 2007 to 2008. He worked closely with Senator Elizabeth Warren on establishing the Bureau, then joined it in 2011 to investigate industry abuses in the student lending market.

His appointment comes at an interesting time for automotive dealers and lenders. As FTC Commissioner, Chopra actively pursued auto dealers perceived of implementing discriminatory practices. He also was a vocal proponent for more protections for consumers, specifically regarding auto lending abuses of all minority demographics and military families.

Continue reading “What a New CFPB Director Means for Auto Dealers”
Categories
EFG Companies

Subscription Training Boosts PRU

Market indicators are certainly trending up these days for retail automotive dealers. According to J.D. Power and LMC Automotive, new-vehicle retail sales for May 2021 are expected to be the highest ever recorded for the month of May. Total new-vehicle sales for May 2021, including retail and non-retail transactions, are projected to reach 1,555,600 units, a 39.6% increase from May 2020. The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 16.7 million units, up 4.7 million units from 2020.

Rising costs do not seem to be impacting consumers yet. While labor and inflationary concerns are capturing headlines and many people are just beginning to emerge from their pandemic bunkers, consumers are on track to spend $53.1 billion on new vehicles in May, the highest on record for any month. Total retailer profit per unit, inclusive of grosses and finance & insurance income, are on pace to reach an all-time high of $3,245, an increase of $1,678 from a year ago and the first time above $3,000 on record. Coupled with the strong retail sales pace, total aggregate retailer profits from new-vehicle sales will be $4.5 billion, the highest ever for the month of May and up an astounding 162% from May 2019.

The used vehicle market is also showing record numbers, with average trade-in values rising to $6,201, an increase of $3,229 (up 108.7 percent) from a year ago. According to the Manheim Used Vehicle Value Index, April delivered three straight months of records as wholesale car prices came in at 194.0, which beat year-ago figures by 54.3 percent and was nearly a 15-point jump from the prior record set a month before (179.2). The value for pick-up trucks alone jumped 77.9 percent!

Continue reading “Subscription Training Boosts PRU”
Categories
EFG Companies

EFG Protects Clients From Claims Fraud – $100,000 Annually

EFG Companies, the innovator behind the award-winning Hyundai Assurance program, has bolstered its formal fraud detection program for retail automotive dealers, creating significant roadblocks against fraud and theft while protecting dealer reinsurance positions. The multi-point program includes real-time call and repair order monitoring and auditing, in-depth training, a proprietary claims system lockdown protocol, and cutting-edge virtual claims inspections, designed to save the dealership more than $100,000 annually in fraud and claims savings. 

According to the Coalition Against Insurance Fraud, fraud accounts for up to 10 percent of claims costs for U.S. insurers, with 32 percent of insurers saying fraud was as high as 20 percent of claims costs. In the F&I industry, those costs directly affect dealership reinsurance positions, impacting the dealer’s bottom line, underwriting profit and investment income.

To protect client reinsurance positions from fraud and ensure quality customer service, every inbound call to EFG’s claims operations is recorded, and a dedicated audit team reviews 300+ claims and calls per month, checking for:

Continue reading “EFG Protects Clients From Claims Fraud – 0,000 Annually”