EFG Companies wants dealers to generate up to $200,000 in revenue per year through a new F&I product rolled out this week.
The firm announced the launch of its re-imagined Motorist Assistance Plan (MAP) vehicle service contract. EFG Companies highlighted this newly engineered VSC can provide dealers the potential to increase VSC sales by 15% through 25 million available terms.
EFG Companies contends that traditional VSCs sometimes have a small set of very specific terms that may not fit every customer’s needs, forcing dealers to shoehorn customers into narrow terms with too much or too little coverage. With the enhanced MAP, EFG expanded eligibility requirements and term mileage in 2,500 mileage increments, resulting in 25 million term options dynamically available to the dealer.
Along with five deductible options and six surcharge options, the updated MAP can allow the dealer to better tailor the product to each customer’s personal driving habits, giving them a viable product for every customer and increasing penetration rates.
The company also mentioned canceled contracts and burdensome chargebacks are also reduced for the dealer with the product’s focus on each customer’s specific protection and budget constraints.
A significant benefit to the newly designed MAP is the product’s surgical-level risk-based pricing.
Not only is this more beneficial for all customers, but EFG Companies also said dealers can benefit significantly from greater contract specificity in their reinsurance positions as reserves are better aligned with contract coverage. This situation can creates a much more efficient loss management and rating process, reducing the impact of high-volume claims on dealers’ reinsurance positions.
“Recent events around the COVID-19 pandemic have significantly accelerated the pace of change in the automotive industry, from online vehicle retailing to F&I products that have a higher degree of relevancy to the consumer,” EFG Companies president and chief executive officer John Pappanastos said in a news release.
“The U.S. long-term economic outlook reflects diminished consumer confidence, driving consumers to demand more specific levels of protection that are better aligned with their individual needs and budgets at a more specific level than we’ve ever seen before,” Pappanastos continued. “This product delivers on all fronts for the consumers while meeting dealers’ evolving profitability hurdles.”
EFG Companies pointed out that MAP is designed for new, used and high-mileage vehicles. With four levels of coverage, including exclusionary and named components, MAP eligibility is extended to current plus 12-model-year vehicles with less than or equal to 150,000 miles.
F&I managers can offer MAP based on the individual driving habits of their customers with:
— Expanded eligibility requirements
— Expanded term mileage in 2,500-mile increments
— Six surcharge options that include commercial and ride-sharing vehicles
— Five deductible options to meet every customer’s need at the time of a claim.
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