FLADCO News

Diminished Value Protection Helps Customers and Drives Profits

Posted by Ian Gamberg on Jun 15, 2022 9:24:08 AM

One in 16 vehicles are involved in an accident each year, and those incidents can weigh heavily on the value of a vehicle come trade-in time.

With tools like CARFAX tracking the history of vehicles, even a minor scrape can cause a major dip in value. Even properly repaired vehicles are worth an average of 30% less than accident-free ones. That can cause headaches when you’re ready to close a deal and a customer gets a surprise downgrade in the value of their trade.

VALUEWise is designed to help dealerships on both ends of the deal. This F&I product offers up to $10,000 in diminished value protection, making it a compelling offer when customers are buying a vehicle, then helping return customers have more buying power when they’re ready to trade up for their next vehicle. This quick video explains the benefit to customers.

Wise F&I CEO Matt Croak explained why the prevalence of VIN history reports is making diminished value protection so important in this article.

To put a great diminished value offering to work in your dealership, contact FLADCO.

GAP Insurance That Protects Profits

Posted by Mark Mackson on Feb 24, 2022 11:08:00 AM

As vehicles get more expensive and loan terms extend to an average of 67 months, GAP insurance is a compelling F&I offering for most customers financing a vehicle. But too often closing the sale is not the end of the story.

Boost Profits by Preventing Revenue Leaks

Posted by Mark Mackson on Jul 14, 2020 6:00:00 AM

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.

Retain and capture more F&I profit

Posted by Mark Mackson on May 6, 2020 12:30:09 PM

GAP insurance has long been a great way to provide customers with a valuable service while creating an excellent revenue stream, and as money gets tighter and loans get longer, it’s more important than ever for customers to get GAP protection.

The trouble for dealerships is that most GAP plans have a painful flaw: Early cancellations and the subsequent chargebacks dealers must pay.

Keeping you informed - MLA changes create F&I opportunities

Posted by Mark Mackson on Mar 5, 2020 7:21:54 AM

The U.S. Department of Defense has changed its interpretation of a key part of the Military Lending Act (MLA) to allow dealerships to offer Guaranteed Asset Protection (GAP) to service members and their families. Now all military customers who finance a vehicle purchase can choose GAP coverage.

WiseMVP Turns Old Trades into New Profits

Posted by Mark Mackson on Jul 31, 2019 5:55:00 AM

Last week we told you about a unique high-mileage vehicle service contract plan called WiseMVP. This protection from Wise F&I is more important than ever, as customers keep their cars longer and more trades come in with well over 100,000 miles.

Sell More Pre-Owned Vehicles, Get Bigger Profits with WiseMVP

Posted by Mark Mackson on Jul 25, 2019 5:55:00 AM

The average age of Americans’ vehicles is nearly 12 years – the highest figure ever recorded. Increased reliability and economic forces are keeping vehicles on the road longer than ever. When they finally do hit dealer lots as trades, it seems inevitable these older vehicles will be destined for unprofitable auctions.

Earn Every Dollar Possible From Each Sale

Posted by Mark Mackson on Jan 9, 2019 6:00:00 AM

After a year of solid growth in sales that defied predictions of a decline, most analysts are calling for a very challenging 2019 for automotive sales. December was down for most automakers. Economic and political uncertainly coupled with higher interest rates mean that U.S. auto sales could fall by as much as 4% according to some forecasts.

Given the bumpy road ahead, it has never been more crucial to maximize the profit on every sale you make. We thought it would be a great time to repost a piece we did last year about how to make the most out of your F&I offerings

Compelling Products Can Boost F&I Profits

Posted by Mark Mackson on Aug 8, 2018 6:00:00 AM

As F&I becomes an increasingly important part of per-vehicle revenue, it is critical to deliver F&I offerings that customers want to buy. Automotive News says that F&I profits now exceed those on new cars themselves. The top public dealership group, AutoNation, now averages $1,789 in F&I profit per vehicle, and some privately held dealerships are easily outpacing that impressive figure.

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