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Two New Programs Cover Diminished Value and Depreciation

January 21, 2018
2 min to read


OLDSMAR, Fla. - Norman & Company has launched two new programs as part of its Classic product line. According to Norm Ferenz, founder and president, the new programs are as powerful and relevant as GAP, plus they drive customers back to the originating dealership.


The first program, Classic Diminished Value Trade-In Protection, provides a trade-in credit up to $10,000 in the event a vehicle is in a collision, survives that collision, has been repaired, and the customer returns to the originating dealership to trade-in their repaired vehicle.

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Ferenz said, “After a vehicle is repaired, the trade-in value is often far less than the trade-in value of a similar vehicle without a history of a collision.”


“We expect this program to be well received by dealerships and consumers based on the frequency of total losses to repaired vehicles.” He points out that according to Insurance Information Institute, there is a two-and-one-half (2.5) times greater likelihood that collisions result in repairsrather than a total loss. “That’s an easy and important story for dealers to tell customers,” he adds.


The second program, Classic Depreciation Benefit Protection, with a maximum benefit of $10,000, comes into play when a vehicle is stolen and not recovered, or deemed a total loss as a result of an accident.


“The insurance company covers only the loss of the vehicle based on book value—what the new car or truck is worth at market value on the date it is totaled,” Ferenz said. “But neither insurance nor GAP cover depreciation and that depreciation could mean consumers would be losing many thousands of dollars.” he added.


Plus, Classic Depreciation Benefit protection covers the depreciation whether customers finance the vehicle or pay cash.

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As in the case of Classic Diminished Value Trade-In Protection, the benefit applies when the customer returns to the originating dealership to replace the totaled vehicle. “Dealerships will appreciate the prospect of selling a second vehicle,” he said.


For additional information about Classic Diminished Value Trade-In Protection and Classic Depreciation Benefit protection, contact Norm Ferenz at 800-930-4633.

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