vehicle service contracts - Dealership Corridor

Contributing Author:
John Stephens
Executive Vice President
EFG Companies

The retail automotive industry has been riding a five year high with average 8.30 percent year-over-year increase in unit sales from 2011 to 2015 according to data from Wards Auto. With the rapid pace of automotive industry growth lending requirements loosened, longer term loans became the norm and more customers who had been holding off on purchasing a vehicle returned to dealerships.

Just like within any economic cycle, after a period of expansion, the pendulum swings to a period of economic reduction. And, everyone is avidly watching the signs to see when that pendulum will start to swing.

Experian’s latest State of Automotive Finance Market Report listed average new vehicle loan terms increased to 67 months in 2015, while used vehicle loan terms increased to 63 months. This has resulted in a significant growth of negative equity on car notes.

EFG Companies was recently recognized as number one of the top ten extended vehicle service contract providers by eHow. This recognition reflects our drive to provide world-class financial service products and administration. At EFG, our mission is to become a trusted performance management partner and market leader in the innovation, sales and administration of protection-oriented products and services and digital marketing solutions. We work to instill our values of dependability, respect, integrity, visionary and excellence in all that we do. This reflects in our product offerings and administration.

Our claims administrators come to work each day with the same goal: exceeding customer expectation. In 2010 that commitment contributed to $26 million paid in customer claims – and an invaluable impact in terms of promises kept.

We are honored that consumers have recognized our dedication to providing the best solutions for their needs.