Matthew Croak, President

How do you define a "combo product"?

A “combo product” typically includes coverage benefits of multiple ancillary products in a single contract. These multiple coverage benefits may be offered in several formats including bundled, à la carte or a combination of both. A dealer’s ability to offer a single contract with multiple coverage benefit options allows for a more personalized solution and enhanced value to the customer, as well as additional profit opportunities for the dealer.

Wise F&I examined other multiple-benefit appearance products common in the industry and concentrated on developing a product that included a combination of both bundled and à la carte coverage benefits — in order to allow a dealer to offer the best value to the customer. The resulting WiseCARE appearance program has all of the tried and true ancillary protection benefits that dealers love to market, plus the modern appearance care options that customers desire.

What types of products are you including in your combo packages today? Why?

Our WiseCARE appearance service contract program includes the following coverage benefits offered as a bundle (“Complete”) and à la carte selection (“Choice”): paintless dent repair, cosmetic alloy wheel repair, windshield repair/replacement, interior/exterior surface repair and emergency roadside assistance with key replacement.

We looked at what was missing from current combo products in the marketplace. We also carefully considered the present-day design of vehicles such as the elimination of body-side moldings; the inclusion of flat, broad windshields; standard alloy wheels, etc. After surveying agents and dealers nationwide the overwhelming consensus was the need for a simple-to-sell, compliant appearance care program. Ultimately, the results of our regulatory and lender compliance research necessitated offering this product as a fully state-compliant, vehicle service contract (VSC).

What are your top reasons behind offering combo products? What, if any, reasons would you have to not offer them?

We developed our combo product, WiseCARE to fill a demand in the marketplace. Both agents and dealers were looking for a solution when it came to combination appearance products. WiseCARE was developed as a VSC to better assure financing approval by lenders nationwide. WiseCARE is offered nationally, with subtle coverage benefit changes where necessary to remain state compliant. Additionally, reinsurance opportunities are available with the WiseCARE appearance service contract program. WiseCARE provides a source of profits for the dealer and value to the customer, both benefits and reasons for offering our WiseCARE products.

When discussing the development of any new product at Wise F&I, the very first question that we ask ourselves is, “Will this product be compliant from a regulatory perspective?” Wise F&I only develops and markets products that are legally compliant under state (and federal) regulatory statutes — so as to eliminate any ambiguity from the program. This includes making all the necessary filings and holding all pertinent licensing as both an administrator and/or obligor depending on the nature of the product offered. Additionally, we take a significant look at how lenders will perceive or finance the new products. Our agents, dealers and their customers rely on Wise F&I to have conducted all necessary due diligence before we bring a product to market.

Is the sales process for a combo product different than for an individual product? Can you give an example?

Yes, the sales process for a combo product provides the dealer the ability to offer multiple coverage benefits as one product in the menu system. This typically decreases the amount of time required by the customer to be in the F&I office and in return increases the dealer’s CSI. Having multiple coverage benefits within a single contract and requiring only one admin fee, delivers a simplified pricing structure that provides efficiency to the selling process.

Our WiseCARE appearance service contract provides multiple coverage benefits and allows the customer to select either a complete bundled package or make a choice of à la carte coverage selections. The ability to offer multiple products that can be quickly customized to suit a particular customer’s needs is a clear benefit of our WiseCARE program.

Do you believe the combo product strategy will evolve in the future? What types of product combos do you anticipate in the next 2-5 years?

Based on our 24 years of experience developing and offering F&I products, the evolution will likely involve most of the service-related products (offered in an F&I office) being made available in a customizable fashion to suit customers’ specific needs. Compliance under regulatory guidelines and lender acceptance will play important roles when looking to future products we anticipate offering.

Is there anything else you would like to add?

Wise F&I’s combo product WiseCARE is unique in the marketplace as an appearance service contract. WiseCARE has changed the way agents and dealers think about vehicle interior and exterior appearance protection offerings. WiseCARE is the perfect product for dealers that may lack confidence in traditional interior and exterior vehicle protection products or for those dealerships without the infrastructure necessary to efficiently apply the chemical protection products — because WiseCARE is a non-chemical, appearance-care service contract program.

With coverage benefits including paintless dent repair, cosmetic alloy wheel repair, windshield repair/replacement, interior/exterior surface repair and emergency roadside assistance with key replacement, WiseCARE is available to dealership customers in two, easy to understand coverage options. The WiseCARE ‘Complete’ bundled package includes all of the available coverage benefits while the WiseCARE ‘Choice’ option allows dealerships to tailor à la carte coverage plans to suit customer’s individual needs.

WiseCARE gives our agents the power to offer the first truly compliant “third” product offering for their dealership’s F&I departments. The WiseCARE program employs a state-of-the-art, customer-friendly, Web-based claims administration system allowing either the contract-holder or dealership to initiate a service request 24/7. WiseCARE was created to be a solid F&I profit producer that also drives service lane revenue via customer retention supported by this Web-based claims system.