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.
The number of car accidents in the U.S. each year is 6.2 Million. After a car has been in an accident, even if properly repaired, a damaged vehicle’s loss in value can often exceed 30%. That vehicle has lost value on the open market just because of the perception that the unit is not as good as claim-free vehicles. This is true even if the claimant is the innocent party.
It truly is an “easy sell” for dealers based on the breadth of the issue. Consumers know that accidents happen. Offer them an automotive diminished value protection program to provide them with peace of mind that if and when they get into an accident, their financial investment is still protected. This provides a great opportunity for your dealership to offer a win-win product 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.
Diminished Value Protection is one of the most useful of all F&I products, based in part on the likelihood of the events being covered.
F&I departments often run into roadblocks because customers prefer to take their chances rather than pay for something that covers an unlikely event. However, many people have had an accident before and run into this diminished value scenario, and for especially those that have, they will think, ‘Hey I lost value the first time, I need to have that level of protection
Our Diminished Value programs will help make it an easy sell and create dealer retention, as well.
Though we generally see the Diminished Value product as an F&I offering, it can also be utilized in the service department, a key cog to creating loyal customers. There are going to be a lot more people coming in that need body work or require an oil change than there are customers coming into buy cars on a regular basis. Each of those departments (F&I and service) can be a revenue generator for themselves.
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