GAP coverage is a great tool for delivering value to customers while boosting F&I revenue, but all dealers have felt the pain of chargebacks due to early cancellations.
Wise F&I offers a plan to significantly mitigate those losses. About 30% of customers cancel GAP coverage in the first half of their terms, which causes costly chargebacks with most GAP plans. Wise’s ExpressGAP reduces dealer cancellation chargebacks due to the gap earning method, delivering an average savings of $308 per contract and a reduction of loss ratios by 10%-12%.
ExpressGAP accelerates the earning method due to a cancellation policy that protects profits with a more favorable refund system. A dealership selling just 75 ExpressGAP policies per month versus a competing plan could earn more than $6,700 more per month by protecting against chargebacks. One large-volume ExpressGAP dealership saw $500,000 more in profit in a year.
Make sure you’re getting all the profit you can out of your GAP program by contacting FLADCO.