Matt Croak Weighs in on Industry Trends for 2019
February 14, 2019
Agent Entrepreneur recently published an article, AE Industry Trends for 2019.
President of Wise F&I, Matt Croak, weighed in along with other industry leaders, about the state of the industry and thoughts about what’s ahead in 2019 for F&I.
One topic that was covered in the article was diminished value. Wise F&I launched a diminished value protection product, VALUEWise, a couple of years ago. Read more about what Croak has to say about diminished value protection:
“We feel diminished value protection will be the next F&I big seller,” said Wise F&I’s Croak. “There are a number of reasons a diminished value protection product is timely for the market. First, with the Military Lending Act interpretation impacting GAP sales, dealers are looking for another product to offer that will protect the consumer. Second, diminished value provides a benefit for a loss in value that the consumer may not be expecting.”
When a vehicle is involved in a collision and then repaired, Croak explained, multiple reporting systems will expose the previous damage and repair to the dealer at the time of trade-in, resulting in a lower offer.
“Diminished value protection covers that loss for the consumer and enables the dealer to provide a better value on the sale of a new vehicle. Third, although we see an increase in lender acceptance of the diminished value protection product, there are similar hurdles that we experienced with GAP at its inception. Just like GAP, however, we believe the diminished value protection product will be a staple on the F&I menu,” Croak said.