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 automobile dealer interested in increasing revenues while also improving customer satisfaction should consider setting up a Dealer Equity Program of their own.
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 cancellations and claims. The business, which aims to protect your auto dealership's finances requires the creation of a C-corporation insurance company. You must maintain good money flow into your account so that you can effortlessly cater for any unexpected losses and costs that may hinder your company's flow of income.
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 their business.