VALUEWise: Protecting Vehicle Value after an Accident

Why Dealerships and Consumers Need VALUEWise: Protecting Vehicle Value after an Accident

Accidents are an unfortunate but common part of vehicle ownership. For many consumers, the aftermath of an accident can lead to a harsh reality: even with comprehensive insurance, a repaired vehicle loses significant value, often more than 30%. This phenomenon is termed "diminished value." The repercussions of diminished value are broad, affecting both the vehicle owner and dealerships.

Understanding Diminished Value and its Impact

Every vehicle owner treasures their car's value, both emotionally and financially. So imagine the distress of realizing that after a crash, even if their vehicle is perfectly repaired, it's still worth significantly less. The culprit behind this? Diminished value.

The statistics are daunting. Every year in the U.S., there are 6.2 million car accidents, with one in 16 chances of any vehicle owner getting into one. Once a vehicle is involved in an accident, it can lose up to 33% of its original value. Furthermore, this loss is not covered by insurance.

Such a reduction can lead to negative equity, putting owners "upside down" in their vehicle loans. This situation complicates the trade-in process, especially with the industry's reliance on CARFAX® and other VIN history reports. A reported accident can automatically slash a vehicle's trade-in value, even if it's in mint condition post-repair.

Introducing VALUEWise: The Ultimate Diminished Value Solution

VALUEWise isn't just another product—it's a game-changer for both consumers and dealers.

For consumers:

• VALUEWise can amplify a trade-in value, covering up to a whopping $10,000 of diminished value.

• It significantly reduces or even eradicates negative equity stemming from diminished value, ensuring financial protection.

• It isn't insurance but a protection plan offering financial coverage against the dreaded diminished value.

For dealers:

• VALUEWise offers an additional revenue stream, available for sale at the point of purchase or any time after.

• It caters to both new and pre-owned vehicles, irrespective of mileage or condition.

• Multiple coverage terms (1, 3, or 5 years) enhance flexibility.

• The product is backed by an A+ (Superior) rated insurance carrier, ensuring reliability.

• Dealers benefit from customer retention as the VALUEWise redemption mandates return to the original selling dealer.

• Online tools streamline the redemption process, making it effortless for dealers to manage.

• Can be sold in conjunction with GAP (Guranteed Asset Protection)

• Has both Admin-obligor and Re-Insurance Opportunities for dealers.

• No LTV requirements or qualification like GAP, can be sold during all transaction types (Cash, Finance & Lease).

How VALUEWise Functions

1. A customer purchases VALUEWise during vehicle sale.

2. If their vehicle faces an accident but isn't declared a total loss, they'll claim insurance and get the vehicle fixed.

3. Upon deciding to get a new vehicle, the customer revisits the original dealer. With VALUEWise, the diminished value is covered, potentially boosting the trade-in value by up to $10,000, only at the selling dealer.

Conclusion

With accidents being a commonplace event and diminished value becoming a tangible concern for vehicle owners, VALUEWise bridges a crucial gap in the market. It offers dealerships an edge in customer retention and added revenue, while consumers get protection against unforeseen financial setbacks due to diminished value. In a market where vehicle value matters, VALUEWise stands out as the wise choice for both dealers and their customers.

To learn more about adding this product at your dealership, contact Performance Dealer Solutions today at info@pdealers.com or by calling 406-404-4866.