Extended warranties going above and beyond.
Vehicle service contracts, also known as extended warranties, are sold to customers above and beyond the price of the vehicle. For Franchise, Independent and BHPH dealers vehicle service contracts help you to control the customer’s ownership experience in a favorable manner which helps you to receive repeat and referral business. Vehicle service contracts are also one of the most lucrative products for you the dealer to sell your customer. The best way to maximize profit is to reinsure these contracts in your dealer owned reinsurance company. This is very similar to owning a warranty company solely for your store and your customers. Your reinsurance company allows you to capture profit you were originally sending to a third party warranty company. If they weren’t making a profit off of you or taking a loss, why would they continue to do business with you?
For BHPH dealers, our program allows your vehicle service contract’s premium to be financed over the term so you are billed monthly as you receive payments from the customer. Instead of having to pay for the full “cost” of the contract the next month after you have sold it, you will pay your reinsurance company in much smaller installments over the term of the service contract. This ensures that you are not hurting your cash flow and lending pool. The contract is still reinsured so you capture all underwriting profit at the end of the term of the contract.
Our vehicle service contracts are offered in many different terms and coverage levels from 72 month exclusionary wraps for the new/program vehicle to short term powertrain contracts for high mileage and everything in between, we have all the options available and will help you put the best program together to fit your inventory and business model.
Contact us today to start taking advantage of reinsuring your vehicle service contracts!
If you would like to know if reinsurance is right for you, just ask! We can help.