FIRST INNOVATIONS LAUNCHES NO CHARGEBACK GAP IN TEXAS! FEB 21, 2019
With profit margins continuing to be squeezed in franchise automobile dealerships, dealers are looking for more ways to Increase Volume, Increase Gross and Decrease Expenses.
One of the big “expense” items eroding F&I profits are cancellation refunds. First Innovations has pioneered a robust approach to lowering cancellation refunds within F&I departments through its “holistic” approach to F&I department management.
Monthly cancellation reviews by product and dollar amount is conducted and analyzed to determine if there are any trending issues with lenders, certain products, term of loans, amount of profits per product, cancellation reasons, etc. From this data, First Innovations develops a customized approach to maximizing F&I product income while minimizing F&I dollars cancellation refunds. There are many variables involved in reducing cancellation refunds and increasing retain Net Profits.
One of the more recent trending cancellation issues impacting dealerships’ F&I profits is GAP cancellation refunds are on the rise due to regulation overview and intervention with lenders. As repossessions also begin to rise this will contribute even more to profits refund erosion.
As a result, one of the tools First Innovations has developed to continue to drive down cancellation refunds, increase F&I department Net Profits, and improve dealership cash flow is with a NO CHARGEBACK GAP PRODUCT.
First Innovations has received approval from the OCCC in Texas to market and provide dealerships with a NO CHARGEBACK GAP waiver product. After the first 90-days of required flat cancellation refunds of 100% by the state regulators, the dealership can now book their GAP profits and not worry about future cancellations clawing back at those posted profits.
This is especially relevant with the looming expectations that retail new vehicle sales are going to stagnate and potentially decline in the coming year. When business is down, it is the worst time that you can experience cancellation refund erosion. The F&I departments will be doubly impacted by cancellation refunds due to lower current department profits being made, while the level of cancellation refunds remains the same or even increases. This drives the cancellation ratio of gross dollars to as much as 2 times its normal percentage and has a tremendous impact on dealership cash flow just when you need cash retention the most.
So, make yourself recession and retail volume downturn protected by getting NO CHARGE BACK GAP from only First Innovations in the state of Texas.