FullCover helps recover vehicle operating costs

• reduce insurance costs to only £3/day for any car up to £35k
• achieve a 'reasonable' customer charge for a fully-insured vehicle loan - £10 is less than some insurers charge for a cover note
• improve customer handling, so that any customer charges for fuel or excess mileage can be agreed in advance, and recovered

Used properly, a Dealer need charge for only 4 out of 10 vehicle loans to cover all his FullCover operating costs, allowing him to offer 'free' loans to VIP or warranty customers, or for new car demonstrations.

Turning costs into revenue

A Dealership operating a fleet of 10 courtesy cars will typically use them for 20 days per month, for varying uses - ‘standard’ service loans, warranty work, VOR, etc. In many cases, Dealers make no charge for any of these vehicles, with the result that they represent a significant cost to the business.

A Dealer using FullCover has the opportunity to charge customers for a proportion of these, and can more than meet his operating costs by recovering £10/day for 4 in 10 (40%) loans. Recouping fuel costs improves the position even more.

Monthly Operating Costs
FullCover licence and system support	£87
Vehicle insurance - 10 cars x 20 days x £3/day	£600
Total Operating Cost (exc. fuel)	£687
Monthly Revenue
Courtesy loan charge - 10 cars x £10 x 20 days x 40%	£800
Opportunity Revenue
Fuel charge, e.g. 1 gallon/car/day = £4 x 20 days x 40%	£320
FullCover Net Revenue, exc. fuel	£113
FullCover Net Revenue, inc. fuel	£433

 

Even without allowing for fuel costs, FullCover will cover its costs for a Dealer charging £10/day on just 40% of his vehicle loans.

And while breakeven occurs at 40%, a target of 60-70% is realistic for many Dealers. If this higher level can be achieved, net revenue rises to £1,000 per month.