WIXOM, Mich. — F&I product provider Charter Warranty today announced the launch of a new F&I protection plan designed to reimburse a portion of vehicle owner’s monthly finance or lease payment in the event the vehicle is in a repair facility for more than seven business days.
Car Payment Reimbursement (CPR)'s benefits are eligible for up to five years and can be sold through franchised and independent dealers. The benefit, which can also be sold to fleets or on commercial trucks, also can be wrapped around other ancillary F&I products.
“Unlike GAP, CPR is available throughout the term of the loan, providing payment assistance to customers who experience a mechanical, collision, or a recall issue and the repairs take longer than seven days,” said Paul Pawlusiak, president of Charter Warranty, adding that repairs due to theft and vandalism are also covered. “And in the event of a total loss, CPR provides further budget protection and peace of mind by offering a one-time monthly payment benefit amount to further help reduce any outstanding loan balance amount due.”
If a vehicle is in a dealer’s service department for seven to 15 days, CPR will cover 50% of the vehicle owner’s monthly payment. That benefit extends to 100%, 200% and 300% of the monthly payment if the vehicle is in the shop for 16 to 30 days, 31 to 60 days, and 61 to 90 days, respectively.
Pawlusiak noted that CPR is really designed as a loyalty program, requiring that customers return to their selling dealer for repairs unless they live more than 50 miles away. And in the event a customer experiences a total loss, a check for $1,000 is sent to the originating dealer to help retain the customer. The program also offers a one-time deductible reimbursement of up to $500.
“CPR can also be wrapped around other ancillary products the dealer offers to customers, who will be directed back to the selling dealership for repairs,” Pawlusiak said. “The result is extra parts and labor income that dealers may not realize on customer repairs, as well as a possible boost to CSI.”
Charter Warranty’s Car Payment Reimbursement program is backed by an insurance company with "A-" (excellent) rating with AM Best. For more, visit www.c-p-r.org.