Direct participation provides a simple, up-front commission with no risk—all at a potentially lower cost. It traditionally delivers higher commission with no contingencies.

Retrospective participation provides the potential for additional profit with little or no additional risk and an admin (or third-party) obligor. Credit insurance, service contracts, and GAP under the retrospective participation model deliver potential additional profits with underwriting revenue and investment income with no downside risk. You receive a quarterly activity statement and annual profit distribution.

Dealer Obligor may be the right strategy for you if you want to direct your own cash flow. You decide how to use the cash, taxes will be assessed on cash flow, not profit, and Capital Automotive will act as administrator. You are responsible for any future claims liability. Under the Dealer Obligor model, you own 100% of your program revenue, have better loss control, use our superior administrative capabilities, and receive real-time data for enrollment, claims, cancellations, and cash flow. It’s transparent, flexible, and there is no hidden agenda. We provide all marketing materials, documents, and contractual liability insurance, but unlike traditional service contract programs, you hold the cash for financial leverage and investment-income potential. We develop the game plan for success and you make the decisions and direct 100% of the investment income.

Reinsurance programs are commonly referred to in the industry as CFCs. They provide you with long-term business strategy for more control over investment strategy, but there is a cap on premium. You will most likely be a single producer with the capability to reinsure major product lines.

A Dealer-Owned Warranty Company provides you with more control over your investments. You establish an insurance entity to handle risk, keeping that risk separate from both dealer and dealerships. Any money left after the claims are paid is yours to retain, which provides more investment options.