Tag Archive | "GWC Warranty"

To F&I and Beyond

It’s OK to admit it. After a while, it’s easy for agents to let F&I professionals go through the motions when presenting a service contract. They follow the 300% rule (100% of the products, to 100% of the customers, 100% of the time), they showcase all your products, the customer accepts some, declines others, and everyone goes about their days happy with the products that did land. Business is good, your dealer clients are happy, and that’s enough, right?

But what if business could be better — for you and your dealerships? And if business can be better, how do you get there with out confusing dealership personnel with a new process, technology or any other experience other than what they’re used to?

The answer is simple: a renewed focus on high-mileage vehicles.

If you think about it, it’s a logical next step for dealerships going through the motions in the F&I office. They can apply the same principles, the same tactics and reap the same rewards. However, what many agents and dealerships alike may not realize, is that the rewards from a high-mileage service contract can be even greater than your run-of-the-mill new-car F&I business.

Let me explain.

If you step back and take a look at all areas of your dealerships’ businesses, you could be surprised by how many areas a quality high-mileage vehicle service contract can touch. Let’s take a look at a few areas of importance that could benefit from inserting a process around a topnotch high-mileage vehicle service contract program.

F&I Profitability

It may seem obvious that service contracts are profitable products for an F&I department, but have your dealerships taken a look at how they are performing with F&I products on high-mileage used vehicles? Are they reaping these benefits at all?

There’s a large opportunity for many franchise dealers, whether they are reticent to present a service contract on a high-mileage used vehicle because of the concerns on losses or they aren’t retaining high-mileage used vehicles to begin with. In either instance, having a relationship with a quality high-mileage service contract provider opens up doors to added F&I revenue on vehicles once only destined for auction.

Making sure a service contract partner is reputable and experienced should alleviate any issues about losses. A service contract provider familiar with the high-mileage space will understand how to reserve appropriately and protect both reinsurance pools and dealer reputations.

For dealerships who previously dismissed the thought of retaining high-mileage vehicles, a quality high-mileage service contract offering can help ensure that customer stays in the vehicle, enjoys the vehicle, and returns for a future purchase. And as we discussed earlier, dealerships who previously didn’t retain high-mileage inventory can now build a new stream of service revenue as these vehicles come back for larger, more frequent repairs.

The Service Department

The best dealerships understand that selling a vehicle is just the beginning. Getting that customer back into the dealership for service is the next step in creating a loyal, repeat customer. But let’s be honest. A service drive stands to generate much more revenue from used vehicles than new. It’s not rocket science. Used vehicles break down more often, are outside of factory warranty coverage and generally require more frequent repairs.

Insert a quality used-vehicle service contract here. If your dealer has sold a service contract on a vehicle with 80,000, 90,000 or even 100,000-plus miles on it, that customer isn’t just coming back for oil changes and tire rotations. They’ll be back for air conditioning, transmission and fuel system repairs too. These are all high-value repairs that a customer will be more willing to address with the dealership that protected them from the large out-of-pocket expense.

When a dealer can build trust with a high-mileage service contract, that customer will come back for repairs and that service department has now uncovered a new source of revenue that’s adding instant value to the bottom line.

Used (and New) PVR

It’s no secret that uncovering F&I revenue potential on a segment of inventory that historically wasn’t retailed can improve PVR on used vehicles. But have you or your dealer clients given thought to how these F&I products can improve a dealership’s overall PVR?

Applying the same tactics in the F&I office with high-mileage vehicles that are currently in use with new vehicles can provide an added boost in times of need. If competition, seasonality or other profit-compressing factors are pinching new PVR, making up those numbers on a new segment of used inventory could be just the financial jolt that a dealership needs.

Ideally, this should be an easier path toward closing an F&I sale. A customer in the market for a higher-mileage vehicle can’t deny the fact that their car is more likely to experience a breakdown in their term of ownership than a new car. These customers will also likely be more budget-conscious. By combining the truth about used cars with a tighter monthly budget, getting service contracts on high-mileage vehicles should be child’s play for savvy F&I managers at franchised dealerships.

Capitalizing on this low-hanging fruit can serve as the express lane for dealerships looking to make up for PVR compression on the new car side of the business. When you think about it in these terms, it’s almost a no-brainer to not only retain high-mileage inventory, but turn it into a high-profit opportunity with a quality service contract on the back end.

To bring this all together, it takes an agent and a dealer who share a holistic view of a dealership’s overall performance. In a time where margins on new vehicles are ultra-slim and dealerships are being judged on PVR and CSI, it’s no secret why more and more franchise dealerships are turning to high-mileage inventory to discover new opportunities for revenue and profit.

The dealers who adopt a smart, logical and successful approach to high-mileage service contracts are the ones who reap the rewards in all the areas of the dealership that we’ve covered here. The benefits might be easy ones to realize, like added F&I profitability, by uncovering a new back-end source of revenue. Some benefits might need a little more foresight to realize, like the effects on overall dealership PVR.

The immense opportunity on the back end of high-mileage deals presents a unique opportunity to make up for tight margins on new car business. It takes agents and dealerships with a special blend of savvy and creativity to pounce on this opportunity.

And when it’s all said and done in the F&I office, let’s not forget about the added service department opportunity. It’s not just new inventory coming back for service, it’s higher-mileage cars that require more frequent repairs that will be covered by the quality high-mileage service contract provider you sold.

Put this all together, and you’ve taken a process your dealerships are familiar with — service contract sales — and created a new profit opportunity that any F&I manager can master. And best of all, it’s a process that’s repeatable and brings additional profit to nearly every department within a dealership.

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GWC Introduces Major Account Management Team

WILKES-BARRE, Pa. — Vehicle service contracts provider GWC Warranty, the best-in-class provider of used vehicle service contracts sold through automotive dealers, has announced the inception of a newly created Major Account Management Team.

This new team of five highly skilled and experienced account managers will be led by Area Vice President Cynthia Bodden and will service GWC Warranty’s largest dealership partners. GWC Warranty’s highest-volume dealers will receive an even greater level of individualized service focused on delivering value that helps these dealers sell more cars and be more profitable.

“At GWC Warranty, we have spent the past 20-plus years providing dealers a best-in-class service experience,” said Brian Stach, Chief Revenue Officer at GWC Warranty. “Over that time, we have seen how our largest dealer partners require a unique and personalized level of service. In an effort to provide such without sacrificing the best-in-class experience we provide all GWC dealer partners, we proudly introduce our highly specialized Major Account Management Team.”

Robert Chandler joins GWC as major account manager for the Northeast United States. A University of Massachusetts graduate, Chandler has nearly 15 years of experience in the automotive and finance industries with companies such as Dealertrack, Hitachi Capital of America, and Allstate Dealer Services.

David Hartmann, the major account manager for the Central United States, has 20 years of sales experience, including over a decade in the automotive and F&I industries with large franchise dealerships.

Joseph Kontz has been hired as the major account manager for the Mid-Atlantic United States. Kontz has spent the past nine years in the automotive industry as a franchise dealer sales representative and an F&I executive with Zurich Insurance.

Alicia Murray has joined GWC as the Major Account Manager for the Southeastern region of the United States. Murray brings more than two decades of sales and management experience to GWC, including more than 15 years in the automotive industry as an F&I manager at a franchise dealership and a dealership training specialist with Ally Financial Dealer Products & Services.

Chad Staples is now the Major Account Manager for the Western part of the country, having spent nearly a decade in sales and account management, including several in the insurance and automotive industries. Staples is a 2009 graduate of Arizona State University’s W.P. Carey School of Business.

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GWC Warranty and Nicholas Financial Form Strategic Alliance

WILKES-BARRE, Pa. — Vehicle service contract provider GWC Warranty announced a strategic alliance with Nicholas Financial, a provider of direct consumer loans and installment sales contracts from automobile dealers for used cars and light trucks.

Nicholas Financial operates a network of 63 locations in 18 states spanning the Southeastern and Midwestern United States. Nicholas, which was established in 1987, is one of the largest publicly traded specialty consumer finance companies in North America.

“GWC’s partnership with Nicholas Financial is yet another example of our company’s commitment to delivering a best-in-class experience that helps dealers generate strong referrals and repeat buyers,” said Rob Glander, president and CEO of GWC Warranty. “By aligning with Nicholas, we now have a partner to help us in continuing to share the ‘No Worries, Just Drive’ experience we provide dealers and their customers nationwide.”

The strategic alliance will offer both automotive dealers and consumers more convenient and seamless access to quality financing and best-in-class service contracts. Through its established and growing dealer network, Nicholas will now offer GWC vehicle service contracts, providing its dealers and their customers the confidence that comes along with GWC’s track record of paying more than $3.5 billion in claims to date as part of APCO Holdings.

“At Nicholas, we offer dealers the opportunity to increase sales and maximize profits through financing programs tailored to both the customer and the dealer,” said Nicholas President and CEO Doug Marohn. “GWC, much like the team at Nicholas shares a passion for helping dealers create repeat sales. This customer-focused approach to vehicle service contract and claims administration made this partnership a natural fit.”

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APCO Adds Anne Bélec to Board of Directors

NORCROSS, Ga. — APCO Holdings Inc., the parent company of the EasyCare and GWC brands, announced the addition of Anne Bélec to its board of directors.

Bélec brings extensive experience in brand management. She spent 24 years with Ford Motor Co., where she served as director of Global Marketing for the automaker, as well as president and CEO of Volvo Cars of North America and president of sales operations for Volvo Car Corp. in Sweden.

“Anyone who is fortunate enough to have crossed paths with Anne knows her as one of the most highly-effective leaders and marketing experts in the automotive industry,” said APCO Holdings Chairman Larry Dorfman. “We are really excited and honored to have her join our board of directors. Her presence on the team will undoubtedly accelerate the fulfillment of the goals we have set for helping our customers succeed and our company continue to claim our place as a major player in the dealership solutions industry.”

Bélec added: “I bring experience in a variety of roles, including field experience, interacting with dealers and managing a global brand. The ultimate goal is growth, obviously, but it’s also positioning EasyCare, GWC, Covideo and SAVY, the APCO Holdings brands, as the preferred choices for consumers and dealers. We want the relationship with the dealership to be one where they want to work with us because they believe it is the best product for their customers.”

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GWC Warranty Donates To Janet Weis Children’s Hospital

WILKES-BARRE, Penn. – GWC Warranty, the best-in-class provider of used vehicle service contracts sold through automotive dealers, recently completed a toy drive to benefit the annual toy shop at Geisinger Health System’s Janet Weis Children’s Hospital.

Thanks to toy and monetary donations from GWC Warranty employees across the country, on Tuesday, December 19, GWC donated hundreds of toys to help families of hospitalized children shop for holiday gifts.

Employees pictured with GWC Warranty’s donation are (from left): Kelli Vinciarelli, Executive Assistant and Alyssa Tamburelli, Finance Assistant.

The toy drive donation caps off a charitable year for GWC Warranty in which employees contributed to a Christmas in July Food Drive sponsored by the United Way of Wyoming Valley and adopted the sixth grade class at Wilkes-Barre’s Dodson Elementary. The company also sponsored two trucks as part of the Commission on Economic Opportunity’s Food 4 Kids Summer Program, which supplies summertime meals for children who do not receive the same nutritional support that they do during the school year.

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GWC Warranty Names New Chief Revenue Officer

WILKES-BARRE, Penn. – GWC Warranty, the best-in-class provider of used vehicle service contracts sold through automotive dealers, has appointed Brian Stach as the company’s new Chief Revenue Officer.
In his role, Stach will oversee all of GWC Warranty’s field sales operations, including a nationwide team of Area Vice Presidents, Dealer Consultants and Trainers.
“Brian is a proven leader with a long track record of fostering highly engaged, successful sales teams focused on flawless execution and best-in-class customer service. Because of this, we believe that Brian is an ideal fit to lead GWC Warranty’s talented, industry-leading sales team,” said GWC Warranty CEO & President Rob Glander.
Stach, a St. Mary’s University of Minnesota graduate, joins GWC Warranty following more than 15 years of successful sales management experience. Throughout his career he has spearheaded results-driven initiatives at numerous organizations such as CareerBuilder, Yahoo! and DialogTech. Most recently, he served as the Vice President of Sales for Internet Brands.

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