Rebecca Howard, CEO

In your opinion, what do most agents need to know about this type of payment plan in general that they don’t already?

One of the most important things is that with just a little bit of effort, the agent and dealer can really add some significant revenue to the bottom line. It allows them to sell service contracts they might not have been able to sell, such as times when they weren’t able to qualify the customer, or incorporate it into the loan, or it was a cash buyer, etc. Many dealers won’t continue down the sales path, but this allows them to find financing for that consumer through the interest-free payment option. From the agent’s perspective, there is very little effort to introduce it to the dealership

Why should an agent add this to their product mix, if they don’t already offer it?

It’s an easy product for the agent to carry. We don’t require any type of training or contractual relationship with the agent to introduce this to their dealerships. It is also easy for the dealership to use — it is a few easy steps for the agent to explain how to use the program. At the end of the day, we’re all about giving the dealer the opportunity to sell more service contracts, which the agents benefit from as well. So, from an agent’s perspective, why not sell it?

Do you see this as being exclusively an F&I product, or something that could be sold in the service department as well? Why?

These payment plans are not exclusive to F&I. They can be used for service contract sales at any point in time, in different sales opportunities at the dealership. Many dealers are pushing service contracts in the service drive, or working on sending out other information, such as newsletters, introducing the service contract later in the relationship with the customer. Outside of bundling into the auto loan, this allows the dealer the opportunity to sell the service contract and provide an installment plan since most consumers aren’t in a position to pay cash for the product.

Can you walk me through how it works, from the time the agent places it as an option in a dealership, through the end-customer using it?

It is a simple sign up plan that the agent would introduce to the dealership. Information on how to use the program and how to sign up with Paylink is part of that process. The dealer can then use it for any sale of the service contract they would like. We ask dealership to fill out payment plan agreement, which can be done electronically, mailed or faxed. They select coverage terms, number of installments they’re going to offer, collect a down payment from the consumer and then send out the information. From that point on, that’s really all the dealership is responsible for doing — we take it from there.

Paylink does need to know which service contracts they’re selling to make sure they’re eligible for our program. There are a number of service contract providers, and we have requirements — we don’t want to be collecting payments if it’s not a product that provides the necessary coverage. An agent or dealer would need to let us know which service contract companies they’re selling; they would fill that out on enrollment forms. We are always adding new providers, so there’s not really a set number to choose from. We’re always interested in working with as many administrators as there are out there with qualifying programs.

What are the biggest pros to the service payment plan product? What, if any, are the negatives? How can an agent overcome those?

I don’t really see many negatives in terms of the use of this product. Over the years we’ve heard dealers complain about doing paperwork; one of the areas we’ve worked really hard on is to minimize the need to duplicate entries or paperwork.

We’ve created a Web-based contracting solution, to connect their technology to ours. We work with as many providers as we can to avoid duplication of data or additional paperwork. The agent can be helpful in working with the dealer and us to make sure we have the technology that can benefit their dealerships.

What makes your product, specifically, unique from your competition?

Our flexibility is really our differentiator between our competitors and us. We want to create a program that works for our clients — the dealerships and administrators — and gives them the best possible outcome of selling more contracts. We take a really individualized approach.

Do you see any changes to the product going forward? If so, what are they? If not, why not? What, if any, trends might affect it?

Technology is going to continue to advance. Real-time connectivity will make it easier to use, and easier process between different businesses will make it faster and more effortless to contract. PayLink will continue to evolve to streamline the process and eliminate paper.

Overall we really follow the lead of the auto dealership in terms of what types of programs they’re looking to sell to their clients. What keeps the consumer tied into that relationship with the dealer; we want to enhance that relationship and have a product that supports their needs.

Is there anything else you would like to add?

Overall, in terms of the dealerships having the ability to enhance revenue streams, and in terms of what they can derive in the sale of the vehicle, the service contract becomes a big key. To have ways to sell additional contracts, and then have ways to enhance that relationship, we see a huge win for everyone involved.