EL SEGUNDO, Calif. –- Franchised and independent automotive dealers across the country are using National Payment Network’s Biweekly Payment Plan to manage customer opportunities and generate profits despite rising fuel costs and tightening of consumer credit.
The Southern California-based financial services company is receiving an unprecedented number of phone inquiries from dealers and consumers interested in learning more about NPN's loan acceleration program. Founded in 2001, NPN is a provider of loan acceleration programs for the automotive industry.
"The cost of fuel, declining housing market and a smaller lending pool with lower advance rates, as well as F&I penetration, are drastically impacting the automotive industry," says Jason Typrin, NPN's founder and executive vice president of sales and marketing. "In today's marketplace, dealers need a tool that will help them leverage sales while still meeting the requirements of their business."
According to Typrin, with more billions of dollars tied up in the nation’s new-car inventory, it's become essential for dealers to make new-car buyers feel comfortable they are buying a car they can afford. Karl Schmidt of Morries Automotive Group, which has 16 locations in the Minneapolis metropolitan area and offers NPN’s Biweekly Payment Plan, said: "The best way for dealers to attract customers in today’s new-car marketplace is to have products lined up with where the economy is. Right now consumers are over saturated with sales communication and incentives. The Biweekly Payment Plan is straightforward. It reduces the down payment and creates more room in the deal for service contracts and other F&I products."
NPN’s Biweekly Payment Plan also helps trade cycle management by creating an advancement of equity. Today, NPN has nearly 2,000 dealers signed up to offer the biweekly payment program. Additionally, NPN is the only loan acceleration provider to offer Payment Assurance, a policy that guarantees the security and efficient processing of all financial transactions.
With 100,000 enrolled customers and $3 billion in processed loan values, NPN is leading the charge with value-oriented payment service that boosts F&I income and helps dealers maintain high CSI ratings.
"In a soft car economy, consumers and dealers often get hit the hardest," says Typrin. "Our mission is to help dealers survive, manage, and overcome today’s economic challenges. We’re doing this by helping them leverage their existing F&I department to sell more F&I product and creating value-oriented conversations with consumers."