Key replacement is a relatively new product in the F&I world, but one that has grown tremendously in the past few years. We talked to some of the providers who offer key replacement to get their take on the product, and where they see it going, and it was no surprise to see their responses – every company we spoke with is expecting huge growth for this category.
Technology essentially created a need for the product, our respondents noted, with the advent of keys and key fobs that do more than simply lock and unlock a car. It started in the luxury space, but all the providers we spoke to see a hard push into the more “entry level” side of the market. Those technologies are trickling down to every make and model of automobile, and that will drive the need for key replacement even further in the next few years.
One interesting trend that emerged, however, is that many of the providers have seen more success overall when bundling this product with other offerings, such as tire & wheel or appearance protection, rather than selling it as a stand-alone product. It seems to benefit from being part of a package – customers perceive a greater value when it’s one component of a bundle.
Below, you’ll find the responses from six providers who offer key replacement products. We hope you find it as interesting a read as we did!
Key Replacement Roundup
American Financial and Automotive Services Inc. (AFAS)
American Financial and Automotive Services Inc. (AFAS) Demetrios Lahiri, Vice President of Sales
Can you give me a bit of your company history? How did you become involved in the Key Replacement category?
For more than 35 years, the American Financial companies have assisted dealers in increasing sales and maximizing overall profits. At American Financial, our driving force is to enhance the professional image of our industry through exceptional customer service.
Accelerated Service International (ASI)
Accelerated Service International (ASI) Timothy Jacobson, Sales & Marketing Manager & Michael Moretz, Vice President of Sales, North America
Can you give me a bit of your company history? How did you become involved in the Key Replacement category?
Accelerated Service International (ASI) has partnered with agents and their dealer clients for over a quarter of a century. ASI’s In-house automotive retail experts and field consultants utilize their years of industry experience to create unique and custom Dealer Service Plan offerings that fill the needs of dealers, agents and consumers.
Automobile Protection Corporation (APCO)
Automobile Protection Corporation (APCO) David Colville, Director of Training
Can you give me a bit of your company history? How did you become involved in the Key Replacement category?
Automobile Protection Corp. (APCO) was established in 1984. From day one, our philosophy has been to provide leading edge benefits that enhance a consumer's vehicle ownership experience. We strive every day to deliver world class service to our customers, dealers and agent representatives.
IAS
IAS Jeff Jagoe, Senior Vice President, Sales and Marketing
Can you give me a bit of your company history? How did you become involved in the Key Replacement category?
Founded in 1984, IAS was created to provide practical aftermarket programs and high quality administration and claims. IAS introduced key replacement in the fall of 2007 after a productive trial period with select IAS agents.
RoadVantage
RoadVantage Randy Ross, Vice President of Sales
Can you give me a bit of your company history? How did you become involved in the Key Replacement category?
RoadVantage was founded in May 2011 by F&I industry veterans focused on one goal: build a better automotive aftermarket ancillary product company, from the ground up. Starting with a clean slate enabled us to eliminate the legacy issues that can be troublesome with providers and set a new industry standard in the process.
Safe-Guard Products International LLC
Safe-Guard Products International LLC David Duncan, President
Can you give me a bit of your company history? How did you become involved in the Key Replacement category?
Features such as electronic chips and remote controllers make today’s keys much more costly to replace. Keys are not a $20 item any more. Protecting consumers from the perils of vehicle ownership has always been Safe-Guard's focus. We strive to provide protection, security and peace of mind whether a customer's keys are lost, stolen, locked in a vehicle – or even broken.
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