As dealerships focus on making every penny county, it’s a great time to review all kinds of expenses – especially the ones that don’t appear on your balance sheet. Things like costly chargebacks caused by cancellation of F&I products like GAP coverage.
GAP insurance is a great way to provide peace of mind and add to the bottom line, but most GAP protection has pro rata chargeback clauses that can take a toll on profitability.
Wise F&I offers an array of GAP coverage options, including a plan called ExpressGAP, which is designed to maximize dealership profits and cash flow. Roughly 30% of customers cancel their GAP coverage in the first half of their terms, leading to costly chargebacks on most plans. And if you’re in re-insurance, it’s even more important to protect your profits.
ExpressGAP’s cancellation policy protects profits by using a more favorable refund system that delivers thousands of dollars more in profit for a typical dealership each month, and in one case it delivered half a million dollars more profit to a large-volume dealership.
Contact FLADCO to learn how ExpressGAP can add to your bottom line.
