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CNA National Expands F&I Product Line Beyond Service Contracts with Tire and GAP Coverage

January 28, 2004

CNA National, winner of the first J.D. Power and Associates award for “Highest Overall Dealer Satisfaction with Service Contract Providers,” is expanding its product offerings beyond service contracts for the first time since it was founded more than 20 years ago.

“Our agents and dealers have been asking for us for years to provide additional products they can sell in the F&I department,” said Joe Becker, chief operating officer. “The proliferation of menu selling has created an increase in these requests. While service contracts will continue to be our number-one priority, we are now ready to provide our award-winning level of service for other key profit-makers.”

The first of these offerings include a tire program and GAP coverage, according to Becker.

Preferred Tire CareSM is available for new and used vehicles sold at new-car franchised dealerships. Fully insured and backed by the strength of CNA, the program offers a choice of terms (three or five years). Customer benefits include:

  • Pays to repair or replace factory tires and/or wheels damaged by road hazards such as potholes, rocks, tree limbs and other debris.

  • Coverage includes mounting, balancing, valve stems and taxes for replacement tires.

  • Pays for reimbursement up to $50 for on-the-spot repair of a flat tire or installing a spare..

  • Pays for reimbursement up to $50 for towing if the tire is not repairable and the spare is not usable or available.

  • No deductible.

  • Transferable to next owner (enhances resale value).

    CNA National GAP is also backed by the strength of CNA and available for new and used vehicles sold at new-car franchised dealerships, whether the vehicle is purchased or leased. It features a simple, single rate structure and finance terms up to 84 months. The amount financed can be up to 150 percent of MSRP on new vehicles or NADA retail value on used vehicles.

    GAP AdvantageSM customer benefits include:

  • Provides up to $100,000 to pay the remaining loan or lease balance if a vehicle is stolen or declared a total loss.

  • Pays up to two delinquent monthly payments.

  • Covers up to $1,000 insurance deductible.

    GAP PreferredSM provides all of the above plus $1,000 discount allowance on a replacement vehicle at the selling dealership.

    About CNA National

    CNA National provides service contracts to new-car franchised dealers, including its Dealer EquitySM profit participation and Dealer Equity Re® reinsurance programs for high-volume dealers.

    CNA National has been the sole administrator of the Harley-Davidson Extended Service Plan since the program’s inception in 1991. Founded in 1982 as Western National Warranty Corp., the company was acquired by CNA in 1995 and changed its name to CNA National Warranty Corporation on January 1, 2000.

    Rated “A Excellent” by A.M. Best, CNA has been in business since 1897 and is one of the top 10 insurers in North America, with assets of more than $60 billion. The company is based in Chicago.

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