In today’s world of F&I, dealers are facing more pressure than ever in the F&I office. According to JD Power, the average dealer only sells Vehicle Service Contracts (VSCs) 25-30% of the time, yet nearly 70% of consumers purchase vehicles with protection in mind. So why are so many customers leaving the dealership without buying these coverages? The answer lies in several key factors.
First, manufacturers have enhanced their warranties, and F&I managers often struggle to overcome objections tied to these warranties. When customers purchase new vehicles, they frequently express sentiments like, "I can buy
coverage later." While they're correct that they can, the real question becomes: Who will they buy it from? With the rise of companies like CarShield and Endurance, dealers are losing market share to third-party providers aggressively targeting their customers after the sale. Even manufacturers like Mopar and Ford have begun engaging directly with customers post-sale to offer coverage, cutting out the dealer altogether.
Some dealerships have responded by partnering with call centers or sending mailers to customers, but let’s be honest: when was the last time you were thrilled to receive a sales call or a letter in the mail? Exactly. Consumers are no longer responding to these old-school tactics, nor should they have to.
The F&I office has long been the last area in a dealership without a fully automated platform designed to help dealers sell their products post-sale or through the service drive. Why is that? It’s a question many industry experts have asked for years. While some providers are developing their own consumer-facing websites to offer products directly, how does that truly benefit the dealer? Why would the providers be doing anything that can decrease the dealers market share instead of enhancing their offerings to help dealers increase their market share?
At Pauldron, we’ve built a solution to give the power back to the dealer. Our platform enables dealerships to reconnect with their customers at key points in the ownership journey, allowing them to purchase the coverage they want—without the pressure of a hard-sell phone call or the hassle of returning to the dealership. With the rise of digital retailing and tech-savvy consumers, it's time for dealerships to embrace new technology that enhances their F&I offerings.
Pauldron is designed to level the playing field, giving dealers a way to regain their market share. In a landscape where dealerships are constantly battling to retain their customers, Pauldron stands out as a game-changer—allowing customers to purchase your coverages post-sale and ensuring they’re engaged at every major
point in their ownership experience.
Ready to take back control of your F&I sales? Contact Pauldron today to learn how we can help your dealership stay ahead, reconnect with your customers, and boost your F&I revenue effortlessly.