EFG launches program that guarantees PRU increase for dealers
With dealership profitability down over the past two years, EFG Companies wants to give auto dealers a way to boost their personal wealth creation strategies.
To that end, the F&I and reinsurance provider has introduced its Wealth Builder Profit Participation Suite, which it said delivers a guaranteed profit-per-retail-unit increase along with training that “empirically delivers an F&I profit increase of $206,400 per producer per year,” providing more revenue ceded into the dealer’s reinsurance position.
“Our clients are facing a gauntlet of issues impacting their ability to meet profitability goals,” EFG president and CEO Jennifer Rappaport said. “At EFG, we don’t push one model over another. We are agnostic, focusing on the business needs and goals of the dealer and recommending the most efficient and appropriate model to best manage their personal wealth creation.
“We offer something no other provider does — a profit-per-unit guarantee regardless of sales volume and market conditions. Under our PRU guarantee for eligible clients, if revenue goals are not met EFG will reimburse the difference, ensuring a risk-free path to financial growth.”
EFG said it offers several reinsurance options that include premiums ceded as written (versus earned), plus expert assistance, compliance management, training and incentives to increase revenue.
Those programs include the Retrospective Commission Program, Controlled Foreign Corporation (CFC), Non-Controlled Foreign Corporation (NCFC), Power Controlled Foreign Corporation (Power CFC) and Dealer-Owned Obligor Company (DOOC).
“EFG is more than just a product administrator or reinsurance provider,” Jim Hardick of Moritz Dealerships, which operated five locations in North Texas, said in an EFG news release. “Their team is constantly in our stores providing one-on-one coaching with our finance teams. Because of their in-depth reporting and quarterly reinsurance reviews, we were able to make product adjustments with significant payoffs to our long-term wealth management goals.”
Hardick said EFG has recently “provided monetary participation in a contest within all our locations to increase our product penetration and profit per unit sold. That has not only increased our up-front profit, but also has downstream profitability potential in our reinsurance mix. EFG puts their skin in the game with us, making them a strategic partner in our profit.”