One of the core products in the F&I portfolio is tire and wheel, but over the years, it has evolved to meet changing consumer demands. As the product has evolved, demand has increased — it’s a testament to how listening and adapting can keep a product category not only alive, but thriving.
“Tire and wheel road-hazard protection has become one of the fastest-growing products provided in the F&I office,” said Rick McCormick, national account development manager, Reahard & Associates Inc., in his recent article on the product category. “While there are a few isolated areas of the country that have endured high increases in the cost of this product, for most it is a great profit opportunity for the dealer, and a great value for the customer. That’s a recipe for success.”
To that end, P&A Magazine asked a few tire and wheel providers to tell us about their products, and what sets them apart. You can view their answers below, but one thing I found interesting was that they see growth potential for the category specifically in the cosmetic packages.
Offering to repair or replace tires or wheels that are simply scuffed or scratched, but are still structurally sound, is a market that is growing as more and more U.S. customers purchase upgraded tire or wheel packages on their vehicles. It is a great example of how a traditional F&I product has grown and adapted to the changing consumer preferences, without losing it’s core focus in the process.
Another interesting thing to note is that, from a general technology perspective, the companies we talked to saw the impact more on the claims side than on the products themselves. A faster claims process that is also simpler for both dealers and consumers to access and use, they note, benefits the entire tire and wheel category as a whole, as it leads to more repeat customers looking to purchase the product on additional vehicles.
If you don’t already offer tire and wheel as part of your product roundup, it is worth another look; these offerings are a good place to start your research. “It provides needed coverage at a value-based price to the customer, and is providing good profit levels for dealers,” said McCormick. “Bottom line, it is a great product that is a strong performer and is still growing stronger everyday.”
Tire & Wheel Roundup
CNA National
CNA National Alan Miller, senior vice president of sales
Can you give me a bit of your company history? How did you become involved in the Tire & Wheel category?
CNA National has been in the vehicle service contract industry for over three decades, so developing a tire and wheel product was a natural progression. We had significant demand from dealers because they already were highly satisfied with our vehicle service contract coverage and service levels.
Family First Dealer Services
Family First Dealer Services Zack Matta, director of product & business development
Can you give me a bit of your company history? How did you become involved in the Tire & Wheel category?
Family First Dealer Services (FFDS) was established more than two years ago by its founders Tony Wanderon and Courtney Criado. We provide and administrate many of the F&I products sold in dealerships today.
Innovative Aftermarket Systems (IAS)
Innovative Aftermarket Systems (IAS) Jeff Jagoe, senior vice president of sales and marketing
Can you give me a bit of your company history? How did you become involved in the Tire & Wheel category?
Founded in 1984, IAS was created to provide practical aftermarket programs and high quality administration and claims. IAS helped define tire andwheel as an aftermarket product offering in 1998 because we anticipated the need and found the program to be such a relatable and tangible product that is easy to market. We saw explosive growth in our tire and wheel program about a decade ago, during the wide spread adoption of menu selling.
Safe-Guard Products International
Safe-Guard Products International Dave Duncan, president
Can you give me a bit of your company history? How did you become involved in the Tire & Wheel category?
When Safe-Guard was founded in 1992, the industry was moving away from only offering vehicle service contracts and credit insurance in the F&I office. As companies looked to grow and develop their product offerings, one of our dealer group partners did some customer research, asking, “what should be covered under a manufacturer's warranty, but is not?”
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