Protective Asset Protection Further Helps Dealers During COVID-19 by Reducing Production Requirements on Retrospective Programs
Program update helps local dealers meet the needs of communities and employees.
Program update helps local dealers meet the needs of communities and employees.
CHESTERFIELD – Protective Asset Protection, a leading provider of F&I programs, services and dealer owned warranty company programs, announced an update to its retrospective (Retro) programs that will help local dealerships meet the needs of their communities and employees during COVID-19.
In addition to equipping dealers with the best F&I programs possible, we want to do everything we can to help dealers and their employees during this unprecedented time of operating a business.
Protective is reducing the production requirements for its Retro programs. Beginning with the second quarter interest payment, the production requirements in all Retro programs will be reduced twenty-five percent (25%). In addition, the year-end production requirement will also be reduced. This reduction will be applied across the remainder of the year and all levels, impacting each level of potential payout. All other Retro agreement requirements and conditions remain unchanged, and this change does not impact any other dealer participation programs.
“Dealers are working harder than ever to serve their communities and remain open for new and used vehicle sales as well as the service and repair of these vehicles,” said Rick Kurtz, senior vice president of distribution. “In addition to equipping dealers with the best F&I programs possible, we want to do everything we can to help dealers and their employees during this unprecedented time of operating a business.”
Under the structure of a Retro program, payments to dealerships are retrospective commissions paid by Protective directly to a dealership. Underwriting profits are calculated and paid out to dealers on an earned basis, and these can be paid either through investment income or commissions and distributed in advance with a future offset and payback liability. Dealers should note that the dealer’s business corporation entity will most likely result in less income tax on Retros received than previous to the 2017 Tax Cuts and Jobs Act.
Originally posted on F&I and Showroom
More F&I
Get Ahead of the Change
A strong culture, among other things, will be a key differentiator for auto dealerships as the market speeds ahead to new heights, says industry veteran Joel Kansanback.
Read More →
F&I Without the Handoff
Get more familiar with what your dealer clients are really buying when they entrust you with finance-and-insurance.
Read More →
Affordability Shapes Auto Demand
Auto originations increased 1% in the first quarter, and electric vehicles are rebounding, according to TransUnion's latest credit report.
Read More →
The Evolution of Agency Development in Modern F&I
General agents have a different roadmap for success than their predecessors. It will pay for them to follow it in order to be true dealer partners.
Read More →
Four-Figure Loan Payments on the Rise
A LendingTree analysis found that location, age and credit score play a role in the rising amount of auto loan borrowers who make monthly payments of $1,000 or more.
Read More →
APCO Holdings Acquires Fidelity Dealer Services
The finance-and-insurance product provider says the addition strengthens EasyCare’s reach across key markets.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
Ensure Your Clients Are Sure About Reinsurance
Industry experts recently broke down the complicated profit center at Agent Summit. Learn what’s relevant and what’s new to share with your dealers.
Read More →
Car Loans More Plentiful
May access opens up, as risk segments figured largely in the increased availability, Cox Automotive reported.
Read More →