With a reinsurance company, you can sell your customers a vehicle service contract and build a pool of customer money to fix your customer's cars when they break and it just so happens that you own the pool. So, instead of coming out of pocket for your customer's repairs, you dip into the customer funded pool, get the car fixed and keep your customer on the road.
With DealerRE, you won't have to pay for the full premium up front like you would with a 3rd party.
If you were with a 3rd party and you sold 10 contracts and each cost $1000, they would make you send in $10,000 the next month. That would hurt the cash flow of your business. DealerRE allows you to pay the premium over the term of the contract helping you to stay cash flow positive.
What if there were another way to protect your collateral and collect a premium from the customer each month to do so, that would allow you to create a new revenue stream and make sure that your collateral risk is covered allowing you to sleep easier at night knowing your portfolio risk is mitigated and you're making the profits that insurance companies were making off of your customers previously? DealerRE helps our clients do just that with collateral protection insurance and debt cancellation coverage.
Last but not least
An opportunity you may not recognize is what to do with remaining balances when your customer has had a total loss accident and you’ve received what you are going to get from the insurance company for the vehicle. A few dealers we have spoken with decide to go after the customer for the left-over balance, but as I’m sure you have guessed, that option is rarely fruitful and if anything, it alienates that customer from purchasing from you again. You spend a lot of money on marketing, why would you do anything that pushes customers away from you? So, most dealers we speak with tell me they forgive the balance and write it off as uncollectible in an effort to keep the customer and focus efforts on parts of the business that are more fruitful. This way of managing the problem is probably the one that makes the most sense for you, BUT, let us introduce you to the opportunity.
If you really think about that latter method of handling the left-over balances, you are providing GAP for the customer, you are just doing it for free.
Not only sell it to them, but do so through a reinsurance company so you get to keep all of the underwriting profits and you don’t have to deal with a 3rd party GAP company who is trying NOT to pay you…
Why do that when you could sell it to them?
DealerRE has been helping dealers set up reinsurance companies for well over 15 years and you can lean on our experience to help you put together the program you need to be as successful and profitable as possible. Give us a call today and we would be happy to do a business analysis for you and show you the opportunities you have with reinsurance to be a better, more profitable dealer. We can provide you with references and testimonials from our dealer clients just like you who say "I wish I had done this when I first started out."