New week! New opportunities! How is your portfolio doing so far for the year for 2021? How are you protecting your portfolio? Are you looking for new profit centers for your dealership?
Automobile dealer reinsurance is a specialized financial product that helps buy here pay here dealers fulfill their warranty obligations for vehicle service and powertrain contracts, GAP insurance, tire and wheel protection, and several other finance & insurance (F&I) products.
Dealers can create their own insurance company , and also assume the responsibility for having enough money in your reinsurance account to cover all costs, cancellations, or claims.
How many of you own a reinsurance company? How is it working? And for those don’t, why are you holding back? We especially would like to know if you are using a third party administrator, and how are those results? Take a moment and review your Reinsurance third party that you use in our online directory.
Establish a reinsurance company and keep more of the profits from F& I products that you sell. Then, use those funds for the acquisitions of new dealerships, real estate investments, or wealth planning.
Since a number of our members were inquiring about reinsurance, we reached out to a couple of third party reinsurance companies that work in the buy here pay here space. Only one responded, and we had the pleasure of speaking with Bret Buike of Buckeye Dealership Consulting.
Buike made it clear that if you are a buy here pay here dealer, ask yourself these questions:
- Are you requiring full coverage insurance on your vehicles?;
- Are you repossessing vehicles because of lack of insurance; and
- Are you losing customer loans due to mechanical breakdowns?
Maybe it’s time to offer a six month warranty? Or if you are paying a warranty company, maybe it’s time to have your own reinsurance company.
Contact bhphmarketplace.com at 866-974-9464 to discuss your dealership needs when it comes to reinsurance programs, the need for capital, the need for inventory, or any need affecting your dealership.
BHPHmarketplace.com is a dealer member organization with one objective for all buy here pay here dealers: Increase the sales and profitability of your BHPH business. Once you attend one of our events, you are considered a member. Call Anthony at 866-974-9464 or email him at firstname.lastname@example.org.