On Tuesday, F&I solution provider EFG Companies rolled out what it dubbed the Drive Forever Worry Free Lifetime Wrap, an enhancement to the company’s limited powertrain protection.
EFG companies explained that the Drive Forever Lifetime Wrap is designed to help dealers close more deals at a higher gross with improved product pricing, expanded eligibility and an underlying complimentary coverage component.
The wrap is a second coverage upgrade option for dealers to utilize when providing customers with complimentary Drive Forever Worry Free Limited Powertrain Protection. Until now, dealers had the option to upgrade customers to a full vehicle service contract with terms up to 96 months/120,000 miles. The Drive Forever Lifetime Wrap provides expanded coverage options with no mileage or time limits.
With the Drive Forever Lifetime Wrap, EFG Companies insisted cost-conscious consumers will be better able to preserve their vehicle’s value and their savings. Beyond the benefits related to vehicle repairs, the coverage is fully transferrable, further enabling consumers to negotiate beyond just the value of their vehicle at resale.
The company went on to note Drive Forever Worry Free is a limited lifetime powertrain program for dealers to offer complimentary as a way to differentiate themselves from the competition. The Drive Forever Lifetime Wrap is an exclusionary coverage that matches the lifetime term of the complimentary product.
The coverage upgrade includes roadside assistance, rental reimbursement and a standard $100 deductible for the first three years.
EFG Companies projected that interest rates are expected to rise three times in 2017 — perhaps as soon as next week — and analysts are predicting lower used-vehicle values as off-lease vehicles enter the market. With an uncertain economic outlook, EFG Companies acknowledged dealers are looking for programs that create more foot traffic and help to close more deals at a higher margin.
“With dealer profit margins being squeezed in recent years, we’ve taken an in-depth look at how we at EFG can measurably facilitate dealer profitability, and customer retention,” said John Pappanastos, president and chief executive officer of EFG Companies.
“In our ongoing contract holder research, we evaluate our protection products with regard to the value perceived by the consumer,” Pappanastos continued. “In the case of Drive Forever, on average, 82 percent of the time, contract holders rank it as a top three reason as to why they chose to purchase from a participating dealer.
“Based on this extensive research and ongoing feedback from dealers, we created the Lifetime Wrap as a natural extension of a program that provides distinct benefits to both dealers and consumers,” he went on to say.
Beyond the benefits of EFG’s complimentary Drive Forever Worry Free program, the company thinks dealers have a better opportunity to stay ahead of the competition with an upgrade that can give customers enhanced coverage for the life of their vehicle, not just their installment contract.
“This product gives dealerships an immediate means of capturing market share and increasing profit margins by turning the sales process into a more value-based conversation,” EFG Companies added.
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