Let’s talk about Diminished Value. Always staying out in front with our product offerings we bring a new profit arena that drives PVR along with customer retention. Out of all the accidents that happen on the road today only a small percentage of those are deemed a total loss by the consumers’ insurance company. The rest are left to dealing with the decrease in value their vehicle now has due to a dirty Carfax when they go to trade. We have products specifically designed to address that issue and drive consumers back to your dealership.
Diminished Value is the sudden and unforeseen “loss in value”, as a result of a vehicle being involved in an accident and subsequently repaired. The Diminished Value of a vehicle is the difference in the resale value of a vehicle immediately before the loss and then immediately after the repair. In spite of an optimal collision repair, Diminished Value is the amount that would need to be taken off the retail value of a car resulting from the collision and repair.
A Diminished Value Protection Plan is a prepaid membership-based service that helps eligible members recoup their diminished value after an auto accident. This innovative F&I product is designed to help protect customers from the negative financial effects of diminished value.
In the US, there are around six million car accidents every year. Apart from physical injury, car accidents cause significant property damage. After a car has been in a crash, its loss in value often exceeds 30 percent — even if it’s properly repaired or restored. The decrease in market value is simply because the unit is no longer as good as claim-free vehicles.
Consumers know road accidents happen. Most of them, if not all, are aware of the need to protect their car, their financial investment. Offering them an automotive diminished value protection program should be an “easy sell” as long as you have the right product. The ACE Group provides an excellent opportunity for your dealership to offer a win-win Diminished Value program to your customers.
The benefits of providing Diminished Value protection at your dealership is that will help generate more revenue and potentially more used supply.
A Diminished Value Protection plan is one of the most useful F&I products and yet, sales personnel still run into roadblocks when offering them to customers. Many people choose to take their chances rather than get a plan that will protect their financial investment. Perhaps they’re too confident in their driving skills, believing they won’t be involved in a road accident soon, or they see the plan as an expense rather than a protection.
Our Diminished Value program resolves your sales personnel’s difficulty when offering such plans. More importantly, we design this product to serve as a revenue generator for your dealership. Our program isn’t solely an F&I product, but it can also be used in the service department, helping you build loyal customers. After all, there are more people who come in needing bodywork or oil change than those who buy cars regularly.
With a program that protects and services your customers’ cars, your sales personnel will find it easier to sell a Diminished Value plan membership — even to those who were initially hesitant about it.
We have partnered with the best in the business to offer you reliable and reputable coverage to pass along to your customers.
- Up to a $15,000 benefit tied back to your dealership
- Easy to use claims portal