Vehicle service contracts, also known as extended warranties, are sold to customers above and beyond the price of the vehicle. For independent and BHPH dealers vehicle service contracts help you to control the customer’s ownership experience in a favorable manner which helps you to receive repeat and referral business. Vehicle service contracts are also one of the most lucrative products for you the dealer to sell your customer. The best way to maximize profit is to reinsure these contracts in your dealer owned reinsurance company. This is very similar to owning a warranty company solely for your store and your customers. Your reinsurance company allows you to capture profit you were originally sending to your warranty company. If they weren’t making a profit off of you or taking a loss, why would they continue to do business with you?
For BHPH dealers vehicle service contracts the premium is financed over the term so you are billed monthly as you receive payments from the customer. This ensures that you are not hurting your cash flow and lending pool. The contract is still reinsured so you capture all underwriting profit at the end of the term of the contract.
Vehicle service contracts are offered in many different terms and coverage levels.
Contact us today to start taking advantage of reinsuring your vehicle service contracts!
Office: Monday-Friday 9:00am - 5:00pm
Address: 7319 Martin St, Gloucester, VA 23061
Phone: (804) 824-9533
Local Time Zone: EST
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