Powersports Dealership Reinsurance Boosts Growth and Profit
According to the NADA, profits from new car sales only account for 5+% of a dealership’s total sales. Used car profits average 13+%, and services account for 70+%. This tells you that for a dealership to become profitable, they should bring in more customers for their Services department. A Powersports Dealership Reinsurance program provides the right platform to increase Services customers and earn from the add-ons they are offering at the same time.
How can you earn from Powersports Dealership Reinsurance?
First off, dealership reinsurance basically means you enter into an agreement with a third-party provider to establish your own Reinsurance Company. What this means is that you will be offering your own F&I solutions, tailored to fit the needs of your dealership and customers. You gain more flexibility to customize the programs, so you can offer the best add-ons to your customers.
Secondly, you earn a profit from dealership reinsurance as all premiums are now paid to your company instead of to the third-party provider. This translates to having a share of the underwriting profits.
Last but not the least, you earn a profit through the customers that bought your F&I programs and who later on visit your dealership for repairs and/or services. You get a share of the underwriting profit and you increase your Services customers at the same time.
Specifically, dealership reinsurance companies that offer scheduled dealership maintenance plans are a great way to earn from reinsurance, increase customers, and motivate loyalty. It’s a three-way win-win situation.
Dealership Reinsurance Boosts Growth
Apart from having a share of the underwriting profit, dealerships are also given the flexibility to utilize reinsurance funds in a way that will boost their growth. They can use the funds to open a second branch, expand the existing dealership to offer more vehicles and services, or invest the funds in securities or equities.
Basically, when a contract expires, whatever is left from the premium paid will go to dealership’s reinsurance funds, considered as “earned funds.”
As you can see, there are several ways a dealership can earn from their own Powersports Dealership Reinsurance company. It’s a great way to increase profits and further drive its growth. The key is to partner with a provider that is the right fit for your dealership.
Contact Torque Group today to start your own Powersports Dealership Reinsurance Company
If you have more questions about dealership reinsurance or you would like to get started on establishing your own reinsurance company, please feel free to contact Torque Group at (800) 859-0590.
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