By Coby Duffer North Regional Manager
Auto customers typically have three areas of financial concern: credit, budget, and equity. Show your customers how family protection and payment protection keep them covered in all three areas:
Credit – We usually focus on the budget benefit of family protection; however, it can have a significant credit benefit as well. If the surviving spouse is a cosigner on the car loan but cannot afford to make payments without the deceased spouse’s income, he or she might be forced to default. Not only could this leave them without transportation, it could have a damaging effect on their credit.
Budget – As mentioned above, this is the most obvious benefit of family protection. Family protection takes over car payments so a potentially reduced income won’t have to be stretched further and so that any life insurance benefits can be invested to provide ongoing income.
Equity – Family protection provides instant equity—it pays the car off immediately. There is no better equity than a vehicle with a free and clear title.
Credit – Payment protection was designed to protect credit. It keeps loss of income due to disability from damaging credit.
Budget – It’s much easier to factor the nominal cost of payment protection into a customer’s current budget while they are still employed than to have to budget for car payments if they become disabled and can’t work.
Equity – What do people have a tendency to do if they’re disabled and can’t make a payment? Ask for deferrals or extensions. These just add to the balance of the loan and decrease equity even more. Payment protection makes their payments for them, so that a disability doesn’t have to decrease equity.
These are just two of the F&I products that address all of customers’ financial concerns. The point is to think beyond the benefits you already know these products have and show customers how the products you sell can keep them covered on all fronts.