May 10, 2011
Combination Products Fire Up PVR
It's time to take a fresh look at combination products. With the right provider, you now have the ability to offer even more products. Tire & Wheel, PDR, Windshield, Roadside and Key can all be used in different combinations to create an "ultimate protection" product in many states.
While these products are great for any customer, the ability to customize is especially useful in two situations described below. Be sure to use an e-contracting solution that can easily customize the combination of products.
The Manheim Used Vehicle Value Index was a record 126.6 in April, up from 124.2 in March. In this economy, budgeting is essential to consumers. Since many F&I products are presented to customers as preventative budgeting (to avoid high repair or replacement costs in the future), combination products deliver peace of mind to used consumers. Combine the products in the best way to meet both their value and coverage expectations. And, make sure you are offering products with no claim benefit limitations, fast customer service and solid coverage.
Retail Price Restrictions
Although it is entirely possible that nothing will change regarding indirect lending in the retail automobile finance business as a result of the Dodd-Frank Act, restrictions on published retail prices could be a possibility. While published retail prices could potentially restrain your profit per product, look to bundled combination products to create more value for the consumer and to raise your profit per product. For more information on the Dodd-Frank Act, download this white paper.