A segment of Manheim’s 2016 Used Car Market Report asked a question most buy-here, pay-here operators consider when they scour the lanes or online platforms to find inventory not only that will turn but will last for the duration of the installment contract.
To answer the question of what $5,000 will buy, Cox Automotive chief executive Tom Webb acknowledged in the report that rising wholesale prices often triggers headaches for BHPH dealers since they need to find vehicles their customers can afford, but can run the term of the note with minimal repairs.
To give a sense of just how much wholesale prices have gone up over time in the lower price tiers, Manheim looked at the average mileage on auction vehicles that sold between $4,000 and $6,000 during the past 16 years. Back in 2000, if operators spent an average of $5,000 for a vehicle at auction they acquired a vehicle with 84,541 miles.
“Average mileage slipped over the following three years as wholesale supplies grew and the overall pricing environment weakened,” Webb explained in the report.
But between 2003 and 2014, Webb pointed out that the average mileage for the typical $5,000 wholesale vehicle purchase rose every year, except for the recession of 2008 and 2009. A year ago, Webb mentioned BHPH dealers got a slight reprieve as the average mileage on a $5,000 auction purchase dipped but remained above 120,000 miles.
During a conversation with BHPH Report, Webb elaborated about the kinds of vehicles that fit that price parameter nowadays.
“It’s certainly a mixed bag,” Webb said. “Certainly a vehicle with six digits on the odometer is really not an issue in terms of running the terms of the note if you have some feeling about its condition level. Some makes and models have better reliability over time than others.
“The buy-here, pay-here dealers, as you know, are extremely knowledgeable of those units,” he added. “Typically they’ll have some makes and models which are on their black list which they will not buy at all for those reasons. But with any model, the condition can vary quite substantially depending on how it was used or abused.”
BHPH operators and other independent dealerships should benefit from the overall lift in wholesale volume, according to Manheim’s report.
As wholesale supplies grew a year ago, Webb explained independent dealers were better able to secure inventory that met the needs of their individual customer bases.
“As a result, unit sales grew considerably faster than in the prior two years, and at a pace that was higher than that of franchised dealers,” Webb wrote in the report. “Earlier in this cycle, many independents suffered as a result of a lower flow of wholesale units from franchised dealers, fewer desirable trade-ins, and reduced auction supplies.
“With all of those sources’ returning to normal volumes, independent dealers should have another good year in 2016, especially if all-important credit conditions remain favorable,” he went on to say.
By the time this article is published, buy-here, pay-here dealers will be well into the 2016 tax refund season. The good news is that tax refund advances are back for the first time since 2012. The bad news is that refunds are tracking behind schedule through February, but are starting to “trickle through” as we head into March.
Will the 2016 tax refund season be a boom or a bust for your BHPH business? Many BHPH dealers forecast for as much as 40 percent of their annual sales to be generated during the tax refund season. The most successful BHPH dealers plan ahead for this time of year in several facets of their business.
Many will ramp up vehicle inventory levels in anticipation of increased sales numbers. Some will implement a tax refund program to process tax returns directly from their BHPH location. Others will change their advertising message to encourage customers to use their tax refund as a down payment on a newer vehicle. Still others will use a tax refund to help customer bring their delinquent loan payment to current status by applying a portion of the tax return to the delinquent account.
However, just adding a large numbers of new loans during the tax refund season does not translate to success in a BHPH operation. Collecting on those loans is where true success is measured, and that success may not be known for two or three years.
It’s the lure of a large down payment.
Most BHPH dealers will see a sharp increase in sales during the tax refund season. However, approving loans just to hit aggressive sales targets could actually backfire on a dealer in the BHPH business. Tax refund season means that customers will generally have larger down payments compared to other times of the year.
A recent survey of BHPH dealers showed that a large percentage of dealers would let a large down payment influence their loan approval decision. Some dealers feel that a large down payment gives the customer “skin in the game”, and as a result the customer is less likely to default on their loan. Other dealers believe there is no direct correlation between the amount of down payment and the likelihood the customer will default on their loan.
These dealers believe that the down payment and the customer’s ability to pay should be evaluated separately.
With those factors in mind, here are the seven key drivers to success during the tax refund season. The most successful BHPH dealers will tell you that one of the keys to success during the tax refund season is to maintain discipline in the underwriting and verification guidelines that you have established. In addition, the following key drivers to success also apply:
1. Don’t take shorts cuts to approving a loan application because of a large down payment.
2. Don’t skip steps in the underwriting process such as pulling a credit report, getting a loan application with three years prior history on residence and employment, and getting a minimum of five references with verified phone numbers.
3. Don’t put the customer in too much payment. A large down payment should be used to improve deal structure (lower the payment, shorten the term) but not to approve a loan.
4. Calculate a net pay to payment ratio before a loan decision is made to verify the customer can afford the payment. One of the most common mistakes BHPH dealers make is putting the customer in more payment that they can afford.
5. Don’t let installing a GPS or starter interrupt device influence your loan decision. A customer with a high net pay to payment ratio or poor job or residence stability will be a problem customer regardless of installing a GPS or SID device.
6. Insist on getting a co-buyer on the loan application with every opportunity. The co-buyer provides an additional layer of security to protect the loan payment from going into default.
7. Don’t be too quick to pull the trigger on repossessions. Most BHPH customers will struggle with their loan payment at some point during the term of their loan. They may need frequent payment arrangements to get their account back to current status. The most successful BHPH dealers will work with their customers, keeping them in the vehicle and making payments. For these dealers, repossessing a vehicle is the last option.
The tax refund season can provide a big boost to a BHPH dealers annual business results. However, big sales numbers during tax refund season can be deceiving. The key to success in BHPH financing is not just putting loans on the books, it’s collecting out those loans!
Mark Dubois is president of Dealer Performance and Consulting. He has more than 30 years of experience in the automotive business ranging from sales, dealership management, recruiting and training, e-business, marketing and BHPH management. His website can be found at www.dealerperformanceandconsulting.com, and he can be reached at (941) 729-2357 or [email protected].
With more tax refund money coming into potential buyers hands, DealerSocket unveiled a five-step customer acquisition plan for independent and buy-here, pay-here dealers on Tuesday.
Backed by the company’s most recent internal data and a survey of dealerships nationwide, DealerSocket highlighted the plan covers what executives called “low-hanging-fruit strategies” that dealers can implement right away to attract and convert more leads.
“It’s tempting for Independent dealers working in the trenches every day to get ‘tunnel vision’ about their marketing efforts. If the numbers aren’t where they need to be, the automatic response is to just try harder,” said Matt Redden, chief marketing and sales officer at DealerSocket.
“Instincts and subjective observations are helpful, but dealers must also prioritize reliable, black-and-white data. It can reframe challenges and uncover solutions they may have never noticed otherwise,” Redden continued.
DealerSocket recommends implementing the following strategies for the quickest results in lead acquisition and conversion:
THE PROBLEM: Phone leads are underperforming.
With lower close rates, longer sales cycles and lower profit margins, phone-sourced leads provide tremendous opportunities of growth. Independent dealers take 37 percent longer to close phone leads whereas franchised dealers only take 18 percent longer. In addition, phone leads result in a mere 14 percent of independents’ sales. Perhaps most challenging of all, phone leads bring in about $307 less profit per sale than other lead sources.
THE SOLUTION: Focus on phone training and call management efficiencies.
DealerSocket estimated independent dealers can make an average of 2.86 outbound calls to each phone prospect, while focusing more time on floor leads (4.13 calls) and Internet leads (3.82 calls). As a result, phone leads have only a 5 percent close rate. Implementing phone sales training and call management technology can help narrow the competitive gap with franchised dealers.
THE PROBLEM: Traditional marketing no longer works.
Radio spots, TV ads, billboards and tent sales are mainstays of most dealerships’ marketing plans. But the ROI just isn’t there anymore. Conventional media now bring in an average total profit of $1,702 per vehicle, while digital marketing rakes in $2,514 per sale. In today’s increasingly digital world, dealers must relinquish preconceived ideas and embrace the media that work.
THE SOLUTION: Digital media results in more sales and costs less.
In many cases, DealerSocket said a lower price translates to lower performance. But executives insisted it’s just the opposite with digital marketing, which includes websites, social networks, email, smartphones, tablets and kiosks. According to DealerSocket data, it costs $150 of digital marketing to sell one car. Compare that to $1,581 of traditional media. If you stick with conventional methods, you’ll pay 10 times more than necessary.
THE PROBLEM: Third-party lead generation can be expensive.
Some dealers believe they must directly pay for more leads. They don’t think they can produce new prospects organically through resources already in place. While third-party lead generators can certainly work, the question boils down to cost effectiveness.
THE SOLUTION: Optimize your website for maximum visibility and efficiency.
DealerSocket determined about 35 percent of independent dealers’ leads arrive through their website, making it the No. 1 lead generator today. The company added it’s also one of the easiest to optimize for even more impressive results. Invest in organic search engine optimization and marketing so customers can find you. Also keep in mind that inventory pages are the most visited section of any dealer website. They should be well organized and fully searchable, while offering multiple calls to action so you can secure more leads.
THE PROBLEM: Digital efforts do not account for user demographics.
Many businesses — dealers included — build websites for themselves rather than their end user. Do you know who is visiting your site, what they prefer in a user experience, and how your content displays on each person’s device?
THE SOLUTION: Pay special attention to mobile and tablet users.
Independent dealer websites can receive about half of their traffic from mobile devices and another 10 percent from tablet users. So DealerSocket suggested that dealers must prioritize responsive Web design that optimizes the user experience, regardless of how the user accesses the Internet.
Also, the company recommended that operators get to know their online shopper base, which typically consists of 65 percent males and 35 percent females. While age ranges are distributed fairly evenly, the majority of online shoppers are between the ages of 25 and 44.
THE PROBLEM: Many leads aren’t yet ready to buy.
Try as you might to bring in new customers, you may find that the majority of your leads are earlier in the purchase process – making it seem that even your strongest closing efforts fall on deaf ears.
THE SOLUTION: Leverage a data mining solution to boost trade-ins and intercept customers when they’re most likely to purchase.
DealerSocket acknowledged that data mining tools have long been a staple of the franchised dealer industry with about half of dealers using the technology. The results are clear cut — 75 percent of deals generated from a data mining solution result in a trade-in. On the contrary, DealerSocket noted only one out of every 10 independent dealers take advantage of data mining, and the small number of trade-ins follow suit (about 19 percent of deals).
The company explained today’s market includes affordable solutions geared specifically toward independents. By leveraging data mining to identify and target customers for vehicle buy-back programs, dealers can accomplish two desirable goals:
— Aid inventory acquisition efforts by purchasing quality vehicles from past customers.
— Increase sales as customers replace their old vehicle with a new one.
For more data-driven recommendations, operators can download DealerSocket’s free Independent Dealership Action Report here.
The latest update from the Internal Revenue Service should calm concerns from buy-here, pay-here dealers looking for potential buyers to have income tax refund monies available for possible down payments or for current customers to get their contract out of the delinquency bin.
The IRS said late on Thursday that it resumed processing individual and business tax returns following a system problem.
The IRS emphasized that taxpayers do not need to take any additional steps or action due to the outage, including people who filed just before or during the outage. Throughout this period, officials indicated taxpayers were able to continue to send their tax returns to their e-file provider. These companies have already started sending these tax returns into the IRS.
The agency indicated it is continuing to examine the underlying cause of this week’s outage as well as monitoring any follow-up issues. Officials emphasized that it's important to note that at this time this situation appears to be a hardware failure.
“IRS teams worked throughout the night and around the clock on this system outage,” IRS commissioner John Koskinen said. “Our processing systems are back in business.
“Taxpayers should see little, if any, impact on their tax returns or refunds,” Koskinen continued. “We apologize for the inconvenience this caused, and we appreciate the support and patience from taxpayers as well as our partners in the tax community and state revenue departments.”
The agency added that it anticipates that nine out of 10 taxpayers will receive their refunds within 21 days after being accepted by the IRS.
The National Independent Automobile Dealers Association made a major enhancement to the NIADA member services Web-based promotional platform.
According to what NIADA officials indicated on Thursday, the enhancement not only can make it easier for the association's 15,000-plus members to access benefit programs, but also is designed to add extensive new offerings.
The association explained the portal, developed in conjunction with BenefitHub, significantly expands the number of member benefit offerings, enhances navigation and ease of use, and makes it much easier to sign up for member benefit programs.
The new member services gateway offers:
— Expanded consumer-oriented member benefit offerings for personal use, including travel, electronics, dining, health/beauty, tickets, sports/outdoors, apparel and more
— Enhanced transparency of NIADA’s many member benefit programs
— Improved user navigation
— A consolidated Member Services hub to eliminate user confusion while enhancing ease of use, understanding of special offers and the signup process
— Enriched capability for member benefit partners to develop new, innovative and compelling NIADA member benefit offerings
“Our valued member dealers will find this new member benefit program portal to be extremely user-friendly, making it easy to navigate and take advantage of the hundreds of exciting, leading-edge member benefit programs that allow them to save hundreds of dollars on both business and personal services and products,” NIADA senior vice president of member services Scott Lilja said.
“This innovative enhancement and resources allocation by NIADA clearly highlights our long-term commitment to ensuring members receive a robust return on their membership investment,” Lilja continued about the site that’s available at niada.benefithub.com.
This enhancement announcement comes on the heels of NIADA acquiring the assets Leedom & Associates.
J.D. Byrider recognized a total of 17 dealerships from 12 states as winners of the buy-here, pay-here store chain’s annual awards during its November convention in Orlando, Fla.
The company highlighted that its Franchise of the Year winners were chosen in three categories — Single (one location), Mid (two to three locations) and Multiple (more than three locations). The winners included:
• Single: Mike Marsh for his location in Traverse City, Mich.
• Mid: Mike Burgstone and team for their locations in Joliet, Glendale Heights, and East Dundee, Illinois. This is their second-consecutive Franchise of the Year award.
• Multiple: Russ Larson and team for his eight locations in Huntsville, Ala., Burlington, Cedar Rapids, Davenport and Des Moines, Iowa, Columbia and Springfield, Mo., and Omaha, Neb. This is their 10th-consecutive Franchise of the Year award.
J.D. Byrider also distributed 17 President’s Awards, which are given to individual locations based on store earnings, portfolio quality and customer service ratings. This year’s President’s Award winners are located in:
Alabama
— Tuscaloosa (2700 Skyland Blvd. E) – Steve and Jeanne Locklear, owners
Arkansas
— Sherwood (6055 Landers Rd.) – Mark Bedgood, Bill Evans, Matt Enderlin, Jeffrey Boone and Fred Nichols, owners
Illinois
— Joliet (2323 W. Jefferson St.) – Mike Burgstone, owner
Indiana
— Bloomington (2425 W. 3rd St.) – Terry Gerhart, Mike Bolin, Ben Becht, owners
Iowa
— Burlington (125 S. Roosevelt Road) – Russ Larson, Doug Stewart, Jeff Lee, Daryl Nelson and Gerod Meier, owners
— Davenport (925 W. Kimberly Road) – Sheila Schaub, Jeff Nickerson and Tedd Pless, owners
— Des Moines (2426 SE 14th St.) – Russ Larson, Jeff Lee, Doug Stewart, Daryl Nelson and Paul Newman, owners
Kentucky
— Owensboro (250 E 18th St.) – Jeff Anderson, owner
Massachusetts
— Dorchester (710 Morrissey Blvd.) – Trevor Wiggins, Jack Correia, Kelly Wiggins, owner
Michigan
— Traverse City (3536 North U.S. 31 South) – Mike Marsh, owner
Ohio
— Euclid (20941 Euclid Ave.) – Dennis Ange, owner
— Akron (777 Canton Road) – Chris McPhie, owner
— Mansfield (1810 W. 4th St.) – Chris McPhie, owner
— Wooster (4536 Cleveland Road) – Chris McPhie, owner
South Carolina
— Columbia (3815 W. Beltline Blvd.) – J.T. and Jonathan Gandolfo, owners
Virginia
— Roanoke (3141 Peters Creek Road) – Gary Duncan, owner
Wisconsin
— Appleton (2301 W. College Ave.) – Russ Darrow, Jr., owner
“We are extremely proud of each of this year’s winners,” said Tom Welter, vice president of franchising for J.D. Byrider. “They have risen to the top of our dealer community with their quality service to customers.
“These awards are a great reminder of the strength within our franchise system and our drive for improvement year after year,” Welter went on to say.
Just before Thanksgiving, Tax Max highlighted a development that could positively impact buy-here, pay-here operators. After four years on the shelf, the banking industry has revived the Tax Refund Advance for 2016.
To help BHPH dealers take advantage of this opportunity, Chip Wiley — who is the corporate trainer and marketing specialist for Tax Refund Services and Tax Max — answered four questions he has received most about how the Tax Refund Advance is designed to function.
Where can customers get these refund advances?
Dealerships need to contact their tax refund season company partner to verify if they are a participant in this program. Not all tax preparers will be participating as not all tax refund associated banks are expected to offer the Tax Refund Advance product. Ask around, contact your state association, or contact national associations like NIADA or NABD for recommendations.
How can I benefit from this?
The obvious answer will be from the early influx of tax refund dollars into the market. In the past two years, tax refunds started paying out between Jan. 29 and through Feb. 5. Tax Refund Advances are expected to begin in the Jan. 15 through Jan. 22 timeframe. Dealers “in the know” will have the advantage with the timing of their marketing.
People want their refund money yesterday, so the allure of a 24-hour check is a major draw. Dealerships that work directly with a tax refund partner stand to profit the most. These companies thrive on the success of the sale of the vehicle and increased down payments, thus creating an essential partner in this critical time of year. Being able to offer your customers the ability to get their hands on early tax season money is key.
How much will this cost the customer? How much will this cost the dealership?
Ask your tax refund partner company for more details. Some Tax Refund Advance products come at no additional cost to the customer, no additional cost to the dealership, and with no credit checks.
Can I expect increased traffic from this?
That is up to you, your sales staff, your marketing, your online presence, and your vigilance to capture the tax refund customer.
If you are content with the business you attracted last year, then no, you should not expect and increase. In fact, your business should drop again this year. The significant beneficiaries will be the business owners who go after the customers and bring them in the door. This can be used as an opportunity for sales, repairs, collections, special payments, irregular payments or back-end product upgrades.
Remember, $750 is a lot of money, but customers will spend it faster than it arrived. Be proactive with the intent on seizing opportunities such as this one while your competitors sit on the sidelines. Many will not know this money is coming. It is your chance to steal market share.
Here’s some good news for buy-here, pay-here dealers going into Thanksgiving celebrations.
After four years on the shelf, the banking industry has revived the Tax Refund Advance for 2016. This development means that much needed funds are expected to be in the hands of consumers in mid-January. Many individuals can expect up to $750 in 24 hours or less.
Prior to 2012, customers became accustomed to 24 hour refund loans. The old RAL (Refund Anticipation Loan) was greatly frowned upon by the current administration in Washington. Consumer protection advocates argued that the fees were too high and the APR was unacceptable. The latest reincarnation has put all of these concerns to rest. This is a win-win for both the dealership and the customer.
Come January, many of the new Tax Refund Advance products that are being proposed will come with zero APR and zero application fees.
Recent history has brought about the new normal of a 5- to 21-day tax refund cycle. This will still exist in 2016. The difference that is generating additional excitement is the opportunity to obtain up to $750 within 24 hours, without a credit check.
The demand for the return of the Tax Refund Advance comes largely in response to the decline in traffic seen by the professional tax preparer. Self-preparation software such as TurboTax and TaxAct seized control of the market after the RAL disappeared.
Consumers seem to have become unconcerned with their own personal qualifications to file a tax return. The market is hoping to capitalize on the primary, pre-2012 draw to the local tax preparer: the enticement of fast money.
Banking institutions within the tax refund industry market have seen dramatic declines in revenues since 2012. Self-prepared tax returns bypass these companies, resulting in reduced customer counts. An old product in the form of a Tax Refund Advance is seen as the new hope to reverse these trends.
Such trends have been mirrored at car dealerships who have not focused on the tax refund customer. Many lament that tax season is not what it once was. This phenomenon is due to both the refund loan hiatus and more aggressive competition.
Dealerships on the sidelines have seen the competition on the field steal their market share while garnering higher down payments. Those with tax refund strategies have seen a steady rise in business, leading to a decline for the rest.
Tax refund marketing has evolved over the past five years to counteract the absence of the refund loan. Now that the Tax Refund Advance has re-emerged, customer traffic is expected to soon follow.
Chip Wiley is the corporate trainer and marketing specialist for Tax Refund Services and Tax Max. Wiley can be reached at (813) 987-2199 or [email protected].
On Sunday, DriveTime is hosting 48 running events across the country during its first DriveTime Kids in Need 5K Fun Run.
Officials shared recent estimates that indicate nearly 20 percent of Americans face the burden of unpaid medical bills.
Recognizing this need, especially among families with children, each DriveTime dealership and operations center will raise funds for a local customer family that has a child with a medical need.
With the addition of the Kids in Need 5K Fun Run, DriveTime said it is deepening its commitment to giving back to the communities in which the company’s employees live, work and run. The Kids in Need 5K Fun Run is designed to provide the unique opportunity to engage all DriveTime dealerships and their communities at once, showing the depth of the network of support created by DriveTime.
Community members are encouraged to join the nearly 4,000 DriveTime employees and run, walk, jog or cheer on their local run. The event is free for participants and spectators, and no tickets are required. Medals will be awarded for the top 3 finishers at each race, and water stations and snacks will be provided.
Through the Kids in Need 5K Fun Run, DriveTime is working hand in hand with local communities and eliminating the potential administrative and marketing costs associated with donating to charities. As a result, DriveTime will give 100 percent of proceeds directly back to the community.
DriveTime is committed to donating a minimum of $65,000 to participating families (up to $230,000), and has set a goal to raise an additional $35,000 from the public. Donations can be made at GoFundMe through the race date.
DriveTime Kids in Need 5K Fun Runs will take place in the following cities:
Albuquerque, N.M
Atlanta
Austin, Texas
Baltimore, Md.
Birmingham, Ala.
Charleston, S.C.
Charlotte, N.C.
Chattanooga, Tenn.
Chicago
Cincinnati
Columbia, S.C.
Columbus, Ohio
Dallas
Dayton, Ohio
Denver
Fort Myers, Fla.
Greensboro, N.C.
Greenville, S.C.
Houston
Huntsville, Ala.
Indianapolis
Jackson, Miss.
Jacksonville, Fla.
Kansas City, Mo.
Knoxville, Tenn.
Las Vegas
Lexington, Ky.
Los Angeles
Louisville, Ky.
Memphis, Tenn.
Montgomery, Ala.
Myrtle Beach, S.C.
Nashville, Tenn.
Norfolk, Va.
Oklahoma City
Orlando, Fla.
Pensacola, Fla.
Philadelphia
Phoenix
Raleigh, N.C.
Richmond, Va.
Roanoke, Va.
San Antonio
Savannah, Ga.
St. Louis
Tallahassee, Fla.
Tampa, Fla.
Tulsa, Okla.
Tyler, Texas
Washington, D.C.
Youngstown, Ohio
To learn more, visit DriveTime’s charities website or find the nearest 5K fun run near you on Facebook, along with time and location information.
Finance And Insurance Resources (FAIR) has partnered with KISS Concepts Group to release the Complete Asset Protection (CAP) program — what they believe is a first-of-its-kind, all-inclusive insurance program to protect the collateral of buy-here, pay-here dealers, lease-here, pay-here dealers, auto finance companies, banks, credit unions and related finance and lease companies.
The CAP program is one of several unique insurance offerings to be released this year, resulting from a strategic master agent private label agreement between FAIR and KISS Concepts Group. The two companies are building a platform of insurance programs tailored specifically for auto-related audiences.
“One of the biggest challenges every auto finance company faces is finding affordable, easy-to-implement ways to minimize their normal everyday losses, catastrophic losses and other unique risk exposures that occur in protecting their collateral and profit. The CAP program offers exactly that,” FAIR chief executive officer Rick Mims said.
“For even more peace of mind, the entire policy is backed by Certain Underwriters at Lloyd’s of London, one of the largest specialty insurance providers in the world with underwriting capacity in excess of $31 billion,” Mims conintue.
CAP includes the following coverage for both loans and leases, combined into one policy:
— Guaranteed asset protection (GAP): This coverage can protect both lenders and borrowers, so it can be presented during the sales process as a value-add to the vehicle buyer.
— Lender’s single interest: If the consumer stops making payments, the lender’s investment can be covered against many perils without the cost of having to track insurance.
—Skip: If the lender cannot locate the borrower, co-borrower or the vehicle, the lender’s investment can be covered.
—Physical damage and theft: If the vehicle is damaged or stolen before, during or after repossession (and the consumer’s insurance has lapsed), the lender’s investment can be covered.
—Title errors and omissions: If the insured party or the state makes an error or omission in the processing of the loan or title work that causes a loss, the insured party can be covered.
—Confiscation and seizure: If the vehicle is impounded or seized by police or a public/government/federal office or officer, the lender’s investment can be covered.
—Terrorism: If the vehicle is damaged during an act of terrorism, the lender’s investment can be covered.
—24-hour roadside assistance: This coverage can benefit both the borrower and lender and includes sign-and-drive coverage for items such as towing assistance, flat tire assistance, emergency fluid delivery, lockout assistance, battery service, rental car discounts and more.
Rod Heasley, president and chief relationships officer of KISS (Keep It Simple Successfully) Concepts Group partnered with FAIR to develop the CAP program. Heasley explained the policy offers dealers and lenders a “one-stop shop” to insure their collateral investment.
“Clients now have the convenience of combining multiple insurance coverages into a single policy. That means only one claim form and one point of contact,” he said.
“In addition to expanding coverage, CAP streamlines the dreaded ‘paperwork overload’ from dealing with multiple insurance agencies, thus adhering to our philosophy of keeping it simple,” Heasley went on to say.
CAP policies may be applied to new and/or existing loan portfolios. Coverages within the policy may be customized, mixed and matched depending on the insured party’s needs and preference.
For more information, contact KISS Concepts Group at (844) 857-0869.
