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Plan Offers Tire Monitoring and Protection Plus Increased F&I Profits

April 25, 2003

Consumers are more concerned than ever about proper tire inflation. Improper inflation results in thousands of accidents every year. And according to USA Today, one in four passenger cars has at least one substantially under-inflated tire.

Customers are extremely interested in safety-related automotive technologies, according to J.D. Power and Associates' 2002 U.S. Automotive Emerging Technologies Study(SM). The low-tire-pressure monitor, which monitors the vehicle's tire pressure and alerts the driver when the tire pressure is low and potentially unsafe, is the most popular feature measured, according to the study.

Now, according to Life Of The South, a system is available which offers your customers visual monitoring that alerts them to low tire pressure, plus premium protection for up to five years or for the life of the tire. The Greentree tireXam program provides coverage up to $2,500 by replacing wheels and rims damaged by flats and new tire replacement if flats cannot be repaired. Installation, mounting and balancing are included in the plan, which is transferable from one owner to another.

The Greentree tireXam System (including monitors and product warranty) is being rolled out nationally and exclusively marketed by Life Of The South. It is available only through authorized selling dealers and approved distributors, according to Jeff Buchanan of Life Of The South.

"Due to the fact that we hold the patent, Life Of The South is the only company that can provide the monitor and the product warranty on the same customer contract," Buchanan told F&I Management and Technology. Buchanan is an AVP of marketing with Life Of The South and also heads up its Automotive Division.

While the monitors themselves have been around for some time, what makes Greentree tireXam unique is that it packages the monitors with a product warranty. "The product warranty is valid if the tire monitors are on the vehicle at the time of the road hazard occurence," Buchanan said. "That feature is what is attracting the attention of a lot of dealers across the country."

According to Buchanan, the product was tested in about 80 dealerships. "It went over so well, we've been seeing penetrations in the 50 to 60 percent range," he said. "The dealerships are reporting an average of about $225 profit. And that translates into a substantial increase of monthly profit for the dealership."

Buchanan said he believes Greentree tireXam is the right product at the right time. "And it's something that the customer can understand what they're getting - and for a very reasonable price, by the way," he said. "With an average cost to the dealership of under $100 the customer can pay cash for the product or finance it right in with their loan and only take their monthly payment up a handful of dollars."

For more information, contact Life Of The South at 1-800-888-2738, ext. 8800.

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