It’s common knowledge that on the front end, it’s very difficult for automotive dealers to make a real profit on selling vehicles. Profitability from selling vehicles continues to trend downward. Vehicle Reinsurance can help dealers make significant profits.

What are Dealer Equity Programs? As a car dealer, you know that certain problems are inevitable and can come up unexpectedly. They can be costly without a solid strategy in place. Dealer Equity Programs have got to be one of the best systems out there for dealers of all sizes.

Several traditional revenue centers exist in a typical automobile dealership, including vehicle sales, service, finance, and insurance (the latter two are known as "F&I"). However, there are other revenue streams available to auto dealers these days that they may want to take advantage of. Any ...

Auto dealer equity programs are a burgeoning business idea that's gaining momentum among automobile finance managers, dealer principals, and general managers. Equity Programs are customized financial products designed to enable auto dealers to cater for the costs of product and service ...

As it is with most dealerships, your parts and service department is probably your company's lifeline. According to a previous report by the National Dealership Association, the service and parts department accounted for about 46% of the gross profits of the average dealership. Putting such figures ...

Reinsurance is an agreement between two insurers, where one transfers portions of its risks portfolios to reduce the chances of paying a large insurance claim. In this model, the reinsurer is the second business and is responsible for clearing the claims that arise from the first company. In the ...

Benefits to Becoming a Dealer Equity Plan Provider Dealerships that incorporate the F&I side of their business benefit financially. Dealer equity companies allow dealerships to develop a secondary revenue stream. Dealerships that turn F&I departments into reinsurance companies benefit from ...

As a dealership owner, resources for realizing long-term revenue are a crucial part of your business. This is where the concept of dealer-owned reinsurance can play an important role. This financial mechanism can greatly assist with warranty obligations as well as give dealers an upper hand over ...

The term "reinsurance" is confusing, but its concept is not hard to understand. As explained on AutoSuccess, "reinsurance is a separate company, owned by you the dealer, to provide Warranties, Vehicle Service Contracts, GAP, Certified Pre-Owned programs, and Collateral Protection to your customers ...

Reinsurance sounds like a good technical term. However, this technical term can be among the best things you do for your dealership and customers. Reinsurance is an excellent strategy for insulating your dealership from volatility and protecting your bottom line.