Powersports Reinsurance Keeps You in Business During Tough Times
When car sales are down or when customers come in trickles on certain months, what keeps your dealership afloat? Dealerships know that they earn more from their F&I offerings as well as their parts and services department than actual vehicle sales. But what about reinsurance ? Have you considered the income potential of a reinsurance company – your own reinsurance company?
Why reinsurance?
In any dealership, whether Powersports or otherwise, part of the buying and selling process is the add-on sale. Here, agents offer customers after-market products they believe will make ownership easier, more manageable, and ultimately, more enjoyable. From extended service contracts to tire and wheel programs, lifetime battery replacement, and such, these products were designed with the owner's benefit in mind.
Reinsurance basically means you will partner with a third-party provider, ideally your dealership's long-time and trusted F&I provider, so they can transfer some of the risk to you. In return, you will have control of the F&I products you offer, including premiums, claims approval or rejection, and claims processing.
A portion of the premiums will go to the provider and the rest will go to your F&I funds. Whatever is left from this fund after claims and maturity of contracts, is yours. You can use this money however you want, but what dealerships usually do is to keep the funds until they've accumulated enough to expand the business or diversify their portfolio.
During lean season, the funds can also be used to keep the dealership operational.
Why reinsurance works
It works because you are given additional business that can increase your bottom line. You are also given the opportunity to better serve your customers. With you having full control of your F&I department, you can make decisions based on what your customers need. That is, you don't have to wait for the approval of your third-party provider.
You get to decide whether or not a claim will be approved, and since you will be directly communicating with the client (there won't be a middleman anymore, which was your dealership previously), claims will have a much shorter processing time. This of course translates to a happy customer. And with a high customer satisfaction rating, you will gain popularity among your customers, new customers, and your peers.
Torque Group Reinsurance Program
Torque Group is a leading provider of F&I products. With over 20 years of experience in business, they know exactly what dealerships and customers need. Trusted by dealerships nationwide, they now offer reinsurance programs designed to benefit both the dealership and their customers.
Call Torque Group today at (800) 859-0590 to learn more about their reinsurance program and how it can boost your business and improve customer service at the same time.
