Tag: vehicle service contract

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EFG Companies F&I Featured

EFG Breaks Tradition Again With The Mileage-Only VSC: MAP My Miles®

-50 percent of consumers surveyed want to customize their next VSC-

MAP_MY_MILES_LOGO_R_trnspEFG Companies, the innovator behind the award-winning Hyundai Assurance program, today announced the  launch of MAP My Miles®, the mileage-only vehicle service contract (VSC) that breaks industry tradition by enabling consumers to customize their VSC to their personal driving habits.

This new product provides dealerships the opportunity to give customers a VSC that’s a perfect fit for them, save time in the F&I office, and turn a sometimes cumbersome selling process into a relaxed conversation – increasing sales. For more information on EFG’s MAP My Miles VSC, visit http://bit.ly/MAPMYMILES

According to a recent EFG survey, 40 percent of consumers nationally said that the terms of the last VSC they purchased ended up being either too much or too little for what they needed. Restrictive coverage terms are often one of the hardest obstacles F&I managers face in selling F&I products. With MAP My Miles, dealers can tailor the product to a customer’s specific driving habits instead of having to accept a standard, traditional coverage level in defined increments which the industry has relied upon for so long.

Continue reading “EFG Breaks Tradition Again With The Mileage-Only VSC: MAP My Miles®”
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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 F&I

EFG Positions Independent Dealers to Capture Greater Share of Wallet

Specialized VSC Provides New Avenue into Under-Served Consumer Market

EFG Companies, the innovators behind the award-winning Hyundai Assurance program, announced today the launch of a new product designed to increase avenues of finance income into a severely under-served consumer market – Best ReGuards.

Best ReGuards is an extensive vehicle service contract from EFG, designed specifically for independent dealers, many of whom have a very loyal and referral-centric customer base, but often don’t have a deep bench of F&I products. This program sets the stage for independent dealers to capture a greater share of wallet by meeting their customer’s economic and vehicle protection needs.

EFG custom-developed Best ReGuards according to the needs of the independent dealership’s customer base by focusing on the most critical components of a used vehicle that are often the most costly to repair:

  • Transmission
  • A/C
  • Engine
  • Electrical
  • Seals/Gaskets

According to “FORBES”, many consumers are spending as their incomes rise, but are unwilling to borrow more money than absolutely necessary. When weighing the pros and cons of purchasing a used car with more years and higher miles, customers of independent dealers are concerned with not only price, but what the dealership can offer them at a reasonable price that others don’t, such as consumer protection products. These consumers may not be able to afford a traditional vehicle service contract, but they are still very interested in purchasing mechanical breakdown protection for their vehicle.

Independent dealerships are well positioned to tap into this growing consumer market. NADA predicts 2014 used car sales to top 42 million units nationwide, setting the stage for more intense competition.

“The independent dealership segment provides EFG a strategic opportunity to take what we’ve done extremely well for 37 years and immediately answer a rapidly-growing demand in the market,” said John Pappanastos, President and CEO of EFG Companies.  “Our products give independent dealers a more valuable toolkit to address each customer’s specific need when it comes to taking care of their vehicle and protecting their pocketbook.  We also act as a very strong extension of the dealer’s customer service through our in-house claims administration group that operates according to above-industry standard target SLAs.  This translates to enhanced customer retention and loyalty.”

Bill Gusa, Managing Partner of Olympic Dealer Marketing, worked closely with EFG on the development of Best ReGuards. “As supply is expected to outpace demand in 2014, our independent dealership partners needed to expand their product portfolio,” Gusa said. “Considering how few independent dealers have the access to provide F&I products, our desire was to give our clients the opportunity to increase their product portfolio and generate greater profits by providing a quality consumer protection product.”

EFG plans to launch a Best ReGuards limited powertrain warranty companion product in the second half of 2014.