Wealth Builder Profit Participation Suite Addresses Automotive Dealers’ Revenue Challenges

EFG Companies has served as a business partner to retail automotive industry clients for nearly 50 years, focused on helping dealer principals achieve their revenue and wealth-building goals. With its nationally award-winning field engagement process, training, technology, and claims administration teams, the company has a guaranteed, proven model of delivering profit, especially during challenging economic times. EFG Companies has been recognized by numerous organizations for its client engagement model and is a 40x Stevies® Awards recipient for Sales and Customer Service.

Reinsurance is a key component of a dealer principal’s wealth management strategy, creating a profit stream beyond just selling vehicles. By providing finance and insurance (F&I) products and establishing a reinsurance entity, dealers can own and control the customer experience while generating income from product premiums. However, the retail automotive industry has suffered through four years of economic challenges impacting dealers’ ability to meet profitability goals.

According to the Q1 2025 Cox Automotive Dealer Sentiment Index, US retail dealers continue to face profitability challenges including persistently high interest rates and rising labor rates impacting profit margins. Cox Automotive noted the profit index dropped from 35 in Q4 to 34 in Q1, reflecting dealers’ perception of weak profits. This is just one point above the all-time low of 33 in Q1 2024 (excluding Q2 2020 during the pandemic) and has been weak for over two years.

Despite these challenges that are outside of dealers’ control, EFG leaders saw a path to profitability for those dealers and agents who refocus on leveraging the things they can control.

The company realized that it was uniquely positioned to support its dealers’ wealth-building strategies despite the economic conditions they faced through its unique ability to guarantee a lift in profit per retail unit sold (PRU) through its client engagement model and proven training with a decade of empirical measurement of notable increases in F&I profit per trainee, per year. EFG's deep knowledge of the issues facing retail automotive dealers enabled the company to set itself apart from the competition.