Automotive F&I products offer a number of ways to protect consumer vehicles—and help dealers during a challenging period.
Vehicle prices are climbing, dealers are facing a margin squeeze, and new-vehicle sales are falling. As a result of this confluence of factors, automotive finance and insurance products (F&I) are becoming a bigger factor themselves in dealer profit centers. Consumers are clutching the wheels of their current vehicles longer, and though that affects new car sales, it also presents opportunity. Longer ownership calls for greater protection, so your customers who are in on their vehicles for the long haul can enjoy it to its fullest for as long as they own it.
Here are a few of the benefits of F&I protection, and how to present them to customers.
Paintless Dent Repair
In a recent Protective Asset Protection survey, nearly half of consumers said they’ve needed paintless dent removal at one time or another. A fast and affordable process, paintless repair is a protective feature that can be hugely valuable, providing cosmetic services to remove minor dents and dings, including hail damage.
What makes it special? It’s a process that requires no grinding, bondo, primers, sealers, or any repainting, and the factory finish is never removed. Performed by a skilled technician, the finished product can make a car appear good as new. The process is 100% environmentally friendly and most repairs can be done within an hour. In short, paintless dent repair is a terrific option for drivers who want to avoid extra expenses on a lease turn-in and keep their ride looking like new.
Tire & Wheel Protection
We’ve all been there: a sudden nail or the wrong pothole—and boom—stranded on the side of the road with a flat. Thankfully, there’s another valuable F&I product that can help consumers enjoy a smoother ride: tire and wheel protection.
Providing coverage against damage caused by a number of road hazards like the aforementioned nails and potholes, plus glass, metal, debris and even a blowout incident, tire and wheel protection offers protection for both new and used vehicles. From a dealer perspective, it’s an easy sell as nearly 70% of drivers say they’ve already used it.
Windshield Chip Repair
And then there’s perhaps the part of the vehicle most susceptible to damage: the glass. According to Insurance Journal, 7.5 million glass damage claims are made every year. While some of these claims are produced by vehicular accidents, many are filed due to minor damage like cracks, chips, and stars caused by stones and other road debris.
What may first be minor, can become a bigger problem if not addressed – that’s where an F&I windshield chip repair plan can come in handy. Not only can windshield repair prevent an escalation of damage and keep drivers from a potentially dangerous situation, it can also help them save money by avoiding a full windshield replacement.
Paintless dent repair, tire and wheel protection, and windshield chip repair. Each and every one of these F&I products can provide terrific value to customers; bundled together, they can provide exceptional protection. With sales in a slump, F&I products not only offer a great opportunity to protect customers, but to recover profit as well.