F&I and Showroom, October 2019

LETTERS www fi magazine com 4 F I and Showroom October 2019 Group Publisher and Editorial Director David Gesualdo 727 947 4027 david gesualdo@ bobit com Associate Publisher Tariq Kamal 212 433 4450 tariq kamal@ bobit com Managing Editor Kate Spatafora kspatafora@ mgigmedia com Art Director Vince Taroc Graphic Artist Jeff Polman National Sales Manager Eric Gesualdo 727 612 8826 egesualdo@ mgigusa com Great Lakes Sales Manager Robert Brown Jr 248 601 2005 robert brown@ bobit com Senior Operations Director Brian Peach 310 533 2496 brian peach@ bobit com Assistant Production Manager Heidi Dimaya 310 533 2542 heidi dimaya@ bobit com Audience Marketing Manager Kati Tucker Chairman 1961 2014 Edward J Bobit Bobit Business Media 3520 Challenger St Torrance CA 90503 Fax 310 533 2503 Corporate Officers CEO Richard Rivera President Sherb Brown Chief Financial Officer Tony Shepherd Chief Digital Officer Eric Bearly Chief Content Officer Cyndy Drummey Chief Marketing Officer Paul Andrews Change Service Requested Return Address Bobit Business Media PO Box 2703 Torrance CA 90509 Subscription Inquiries 888 239 2455 BobitPubs@ Halldata com Printed in U S A THE CAT IS OUT OF THE BAG TO JOHN TABAR John I could not agree with you more Stop Keeping F I Products a Secret September 2019 Page 14 We have kept it a secret like our dealership guests arent smart enough to read and make a positive decision to purchase many of the products and benefits we provide in the F I office Our websites should recommend a service contract tire and wheel dent repair and key replacement when they are checking out a car online When you go to Amazon to buy a product they recommend other items that go along with the item you are purchasing Why wouldnt a dealership want those other items added to the vehicle as a recommendation Its time to provide the tools and resources for the consumer to educate themselves about the other benefits your dealership makes available If we control the education our guests will stay off of the websites promoting direct to consumer products and sites that talk bad about inferior products Take control of your message and take control of educating your guests Randy Cauthen Fantastic Idea I imagine offering our potential buyers a transparent opportunity to research F I products that are genuinely designed for their wants and needs would be a no brainer But we as an industry choose to expect our customers to make that decision in minutes when it took them sometimes weeks to decide their automobile purchase If we keep doing what were doing well keep getting what were getting Its time we updated the way we do some things in the back especially considering F I has become increasingly more important as a revenue generator Steve Iman WE CAN SURTHRIVE THIS THING TO LLOYD TRUSHEL The more relevant threat is not to traditional brick and mortar dealers but to the lead aggregators suffering major reductions in stock prices over the last several months Is Amazon Really a Threat to the Car Business August 2019 Page 14 For about 670 million i e pocket change Amazon could role a few of these players up consolidate and offer up their current emerging lead generation platform and expand their equity value by billions in less than a year Now theres financial engineering James Lawrence Founder and CEO Dealer EFX James we would definitely create a foothold in the marketplace Would also have Cox concerned Thanks for the comment Lloyd Trushel DONT REST YOUR CASE JUST YET TO THE EDITOR I find the figures quoted very interesting 2334 and 1634 in a five year period Ally Soaring Costs Make Case for Service Contracts Aug 26 2019 If they had a service contract they may very well have paid that much or more for the contract and it may or may not have covered needed repairs Either way they have paid Would it have helped if they financed a service contract with their loan It all depends if the company actually paid claims I have been a rep for an aftermarket warranty company for more than 20 years the same company all that time I know the business well Jay I too have been a warranty rep for over 20 years and I believe its time for WaaS warranty as a subscription The upfront cost and profit that finance departments are charging is astronomical Warranty and maintenance should become subscription services afforded to all within the purchase of a vehicle by including the additional services as a necessary part of the purchase The cost can be spread amongst everyone driving that cost even further down Thoughts Zach So the average person spends 1986 on repairs and maintenance over a five year period Most extended service contracts I have seen are priced between 1500 and 3000 depending on the expected reliability of the vehicle usually around 2000 As a good portion of the 1986 is maintenance which is not covered by an extended service contract a buyer of an extended service contract would likely pay more for the contract than they would receive in covered repairs These numbers clearly support the recommendation from most independent consumer advocates car buyers should not buy an extended service contract An extended service contract would likely add 50 or so to the monthly payment A buyer would be better served by putting that 50 aside each month rather than pay for an extended service contract After the OEM warranty expires the buyer would have 1800 or 2400 to cover repairs After five years the buyer will have 3000 Hard to see any real advantage to spending 2000 or so on an extended service contract bet Buddy