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 Product & Technology
Integrating AI Into Your Admin System
It’s important for finance-and insurance administrators to build the technology into their existing systems instead of bolting it on.
Read More →
Public EV Charging Improves
The infrastructure buildout in the U.S. is providing more availability and safety at a better cost, according to the latest EV experience study by JD Power.
Read More →
AI in the Dealership
A Cox Automotive poll shows most dealers use it, but only some have found the smartest ways to adapt the surging technological sensation.
Read More →
AAA Honors Service and Repair Facilities
Three automotive dealerships made AAA's Service Providers of Excellence and Best in Repair list this year.
Read More →
EFG Launches Product Admin Platform
The company says the offering is designed to empower administrators, service contract providers, and product marketers to expand automotive and power-sports capabilities.
Read More →
Optimized Charging Could Reduce Costs
According to an Alliance for Automotive Innovation analysis, optimized EV charging could cut costs for drivers and improve grid infrastructure - potential adoption incentives.
Read More →
From Inspection to Impact
Data, video and artificial intelligence are driving service performance today, when inspection performance is closely tied to key business outcomes.
Read More →
Car Karaoke Gets Official Platform
The in-vehicle karaoke and sing-along platform by Samsung arm is meant to add traveling enjoyment safely in technology that automakers can tailor to their specific needs.
Read More →
Kia Embraces Clean Energy
A Kia Georgia partnership combines weather protection and renewable energy in a new solar canopy system at Kia’s West Point facility.
Read More →
Honda-Sony Venture Dismantled
For nearly four years, the companies had worked toward the launch of the electric-vehicle brand’s first two models, but the shifting EV market scuttled the plans.
Read More →