Tag Archive | "F&I Products"

F&I and New-Vehicle Profitability Drive Profit Gains for AutoNation


FORT LAUDERDALE – AutoNation Inc. reported increased profitability in each of its business sectors for the first quarter, with revenue up 10 percent and gross profit up 6 percent. Officials attributed the healthy profit gains to F&I performance and new-vehicle sales.

Net income from continuing operations rose almost 6 percent to $74 million for the quarter compared to the year-ago period. Revenue rose from $3.3 billion last year to 3.7 billion, with new-vehicle unit sales increasing 8 percent on a same-store basis and 10 percent overall, according to F&I and Showroom magazine.

Driven by increases in F&I and new-vehicle gross profits, overall gross profit for the dealer group increased 6 percent from the year-ago period to $603 million in the first quarter. F&I gross profit increased 7.2 percent per vehicle retailed to $1,213.

Officials also attributed the company’s gross profit gains to the $4.6 million, or $82 on a per new-vehicle retailed basis, related to additional incentives on premium luxury vehicles previously sold.

“The renaissance in auto retail is well underway, reflected in a seasonally adjusted U.S. industry annual selling rate of 14.5 million units for the first quarter of 2012,” said Mike Jackson, Chairman and Chief Executive Officer. “We have increased our 2012 U.S. industry new-vehicle sales forecast to mid-14 million units, as we see continued momentum in U.S. auto sales.”

During the first quarter of 2012, AutoNation repurchased 11.7 million shares of common stock, or 9 percent of the shares outstanding as of Dec. 31, 2011, for an aggregate purchase price of $405.4 million. From April 1 through April 24, 2012, the company also repurchased 2.1 million shares for an aggregate purchase price of $70.8 million. As of April 24, 2012, there were approximately 122 million shares outstanding.

By segment, AutoNation’s domestic-brand stores experienced a 16 percent increase in new-vehicle unit sales, with income ($50 million) up $7 million from the year-ago period. The group’s import stores, which income of $62 million, also increased new-vehicle unit sales by 6 percent. New-vehicle unit sales for the group’s premium luxury stores were up 14 percent. Net income for those stores increase by $1 million to $59 million.

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Reynolds Upgrades docuPAD


DAYTON— Reynolds and Reynolds Co. announced a number of enhancements to docuPAD, the company’s interactive F&I selling tool and document processing system. The refreshed docuPAD now sits on top of the F&I desk rather than being flush-mounted into an F&I producers work station. The screen also is 50 percent larger.

“More than a half-million vehicles already have been delivered through docuPAD, and it’s a tool that’s truly helping to reinvent the F&I experience for dealerships and their customers,” said Jon Strawsburg, vice president of product planning for Reynolds. “Dealers who use docuPAD are finding that they are able to set themselves apart from other dealers and achieve important results: increased accuracy, improved compliance, more F&I selling time and more revenue.”

The latest software enhancements to docuPAD include direct integration with the Reynolds ERA and POWER dealership management systems (DMS), which helps further improve the entire deal-closing process for dealerships and their customers and eliminates the need for dealers to re-key deal data in the DMS, according to the company.

“DocuPAD was developed to help revolutionize the F&I process for dealerships and their customers. We have continued to refine those product attributes to further improve the customer experience and deliver business results that make a significant difference for dealers,” Strawsburg said.

Reynolds and Reynolds has an exclusive marketing relationship with COINdata, the company that originally developed docuPAD.

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Family First Dealer Services and BBVA Compass Bank Announce Lender Approval of the Trade-In Protection Program


JACKSONVILLE – Family First Dealer Services LLC and BBVA Compass Bank announced the addition of Trade-In Protection to its approved list of optional products for sale through its’ Motor Vehicle Retail Installment Dealers.

Trade-In Protection is an optional product which provides a benefit of up to $5,000* towards a customers’ potential negative equity, when they return to the original selling dealer to trade-in and purchase another vehicle if they owe more than what their vehicle is worth.

“TIP is a home run for our dealers,” said Matt Morse of BBVA Compass Bank. “As we are expanding our indirect lending footprint, we were looking for something to offer our dealers that show we are interested in both their profitability today, and their long-term success. TIP helps get that job done.”

TIP combines the retention benefit of a lease – but applied towards a finance contract – as the benefit is redeemable only at the original selling dealership during the trade-in process.

The program is offered on new and used vehicles as an optional F&I program, a blanket program and a combination with benefit levels from $1,000 – $5,000.**

“Partnering with BBVA Compass is extremely exciting,” said Tony Wanderon, CEO of Family First Dealer Services.

“The ability for the dealers who do business with BBVA Compass to add Trade-In Protection to their loans shows the commitment that they have to them and their customers. We look forward to working with the dealers in the Compass market and to a long term partnership.”

*$5,000 max benefit on new vehicles / $3,500 max benefit on used vehicles
**Program and coverage may vary by dealer/state/lender. Please refer to the TIP Agreement for additional terms, conditions, limitations and exclusions.

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New F&Idol Videos Available Now


The magazine has posted new video footage of the five F&Idol category winners running through their product pitches. The following videos were put together by the F&Idol contest’s sponsor, IAS. If you’d like to read our feature about each of the five winners, click here. Or if you’d like to read our profile on overall winner GP Anderson, click here.

 

OVERALL WINNER and Best GAP Presentation
GP Anderson, Thielen Motors

 

Best Theft Protection Presentation
Raymond Borg, Suburban Toyota

 

Best Service Contract Presentation
Chris Bonilla, Auburn Chevrolet

 

Best Tire & Wheel Presentation
Paul Vender Kamp, DeNooyer Chevrolet

 

Best Key Replacement Presentation
Jim Hesselgrave, Crown Honda

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Ford Credit Launches Lincoln-Branded Captive


DEARBORN — Ford Motor Credit Company announced the launch of Lincoln Automotive Financial Services (LAFS), a new captive established to serve Lincoln customers. It will provide branded financing products provided by Ford Credit.

“Lincoln Automotive Financial Services is the dedicated financing brand that complements the experience provided by Lincoln vehicles and our Lincoln dealerships,” said Bernard Silverstone, president of marketing and sales at Ford Credit. “Current and future Lincoln financing customers will enjoy the same exceptional service, with unique Lincoln branding.”

All customer touch points — contracts, invoices and customer service support — are branded LAFS, according to the company. The brand also allows customers to manage their accounts online or from mobile devices, and research financing-related products and services on www.lincolnafs.com, reported F&I and Showroom magazine.

“With a strong Lincoln vehicle lineup, an exceptional dealership experience and competitive private-label financing, we expect to drive more sales and loyalty for Lincoln,” Silverstone said.

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MediaTrac Introduces New ‘BeBack’ Program


SAN RAMON – MediaTrac announced the launch of the BeBack Program, a vehicle sales inducement program designed to target potential buyers that might not have purchased a product on their most recent visit to the dealership, reported F&I and Showroom magazine.

The BeBack program aims to help drive lost sales opportunities back into auto dealerships by providing the buyer with an immediate, customer-centric, valuable reason to return to the store and make a purchase, according to the company.

“Our new BeBack program has been highly effective in the beta dealerships,” said Jeff Shenk, director of operations at MediaTrac. “In fact, one Toyota dealership sold 10 new Toyotas in the first 10 days on the program as a direct result of the BeBack card.”

The BeBack Program allows each dealership to select an incentive value, issue it in the form of a time-restricted, redeemable card and offer it to customers as a sales incentive to entice them to return within a specified period of time to make a purchase. The BeBack card resembles a gift card with the dealership’s brand displayed and can have a variety of different denominations. The dealership also chooses the discount value offered to each prospective buyer.

Following their initial visit to the dealership and the issue of a BeBack card, a series of communications are sent to prospects to entice them back into the dealership. The first of these communications is a quick email survey that seeks to determine why the customer did not make a purchase.

“Prospects decide where to buy in part based on the speed and quality of sales follow-up. Statistics prove that if you can get your prospects back to your store quickly, you will have a much better chance of closing the sale,” said Shenk. “We deliver the right communications at the right time to entice your customers to return. And whether it is sitting in your prospect’s wallet or purse — or even on their dresser at home — the BeBack card is a concrete reminder of the value of doing business with your dealership.”

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