Lamborghini Philadelphia is placing the “I” into in its “F&I” to ensure prospects get what they need.
A few 12 months in the past the Devon, Pa., dealership started providing auto and owners insurance coverage insurance policies to its white-shoe clientele. The transfer is producing extra income for the dealership and fostering goodwill from prospects.
When promoting a brand new automobile, Lamborghini Philadelphia affords to reevaluate prospects’ auto and owners insurance coverage insurance policies to see whether or not they have ample protection.
The dealership then affords them a brand new coverage that’s both inexpensive or has extra complete protection, stated Frank Tucci, basic supervisor at Lamborghini Philadelphia.
“We give them a free look underneath the hood,” Tucci stated. “It is analyzing whether or not they have the correct protection to allow them to defend their new asset. It is giving them a worth.”
For many prospects, the brand new coverage is just not about saving a couple of dollars, however quite ensuring they’ve the precise protection for his or her six-figure investments.
Run-of-the-mill insurance coverage insurance policies may not pay for high-end automaker alternative components after an accident, Tucci stated. “So having the precise insurance coverage supplier is essential.”
Tucci acknowledges that his insurance coverage product doesn’t make sense for each buyer.
“If they’ve ample protection, we merely add the brand new automobile to their current coverage,” he stated.
Lamborghini Philadelphia affords the insurance coverage product via an unbiased insurance coverage company owned by its guardian, RDS Automotive Group.
Newtown Sq., Pa.-based RDS owns a number of dealerships that promote premium manufacturers, together with Porsche, Maserati and McLaren, in Pennsylvania, Connecticut and California.
RDS spent greater than a 12 months launching the insurance coverage enterprise and creating partnerships with greater than 20 carriers, together with Hagerty, Allstate, Chubb, MetLife, The Hartford and Nationwide.
“We needed to recruit a licensed insurance coverage agent and purchase a brand new DMS system to cite and bind insurance policies,” Tucci stated.
For Lamborghini Philadelphia, the insurance coverage product is a brand new income stream. “Our prospects pay on common almost $10,000 in annual insurance coverage premiums,” Tucci stated. “That is a roughly $1,400 fee on every sale.”
The dealership bought 67 new and used Lamborghinis final 12 months and has bought greater than 30 insurance coverage insurance policies to date.
Tucci stated he expects to ramp up the insurance coverage enterprise this 12 months and promote insurance policies to about half the dealership’s prospects, doubtlessly producing almost $500,000 in premiums.
“Individuals do not buy a automobile yearly, however they renew their insurance coverage yearly,” he stated. “So I am getting a fee every year.”
In the meantime, RDS Automotive will roll out the insurance coverage service merchandise throughout its eight shops by the top of 2022. The enterprise may generate greater than $770,000 in annual commissions.
Tucci stated the insurance coverage service is a part of a “concierge expertise” provided to the dealership’s well-heeled prospects.
“We make COVID vaccine appointments for our prospects; we advocate one of the best tailor, or accountants on the town,” Tucci stated. “The extra one-stop store we’re, the extra snug prospects are with us.”