The partnership with Nodifi allows Eric to provide dealerships with a Tier 2 accredited resource to help customers with finance and insurance options for new and used vehicles purchased through dealerships.
The VBM model allows dealers to have new revenue streams by offering customers alternative channels to finance and insure their vehicle purchase.
Eric Insurance general manager (customer) Jonathan Brookes said: “The partnership provides an opportunity for car and motorcycle dealerships to diversify their revenue streams in accordance with consumer buying trends.
“Not only does this benefit dealerships’ bottom line, but also delivers a seamless buying experience for their customers, appealing to a growing demographic chasing a virtual buying experience,” he said.
Nodifi CEO Tom Caesar said the new partnership “reaffirms the upward trajectory the business is experiencing”, following its partnership with industry-leading aggregator, Connective.
“We are seeing an influx of enquiry from various businesses, seeking potential diversification solutions ahead of pending compliance regulation changes and changing consumer behaviour trends,” Mr Caesar said.
“Our back-office staff has expanded by 70 per cent over the past 12 months and have proven to help dealers reduce their fixed costs whilst increasing finance penetration.”
Mr Brookes said that research by Eric found that dealerships have experienced a fall in finance income and insurance revenue of around 20 per cent in the past 12 months.
This led to Eric having more than 80 per cent of dealers showing interest in options for their customers to purchase finance and insurance solutions via alternative methods including phone, video and online channels.
Select dealerships in Eric’s network will be the first invited to the new VBM model, with a full network invitation expected to follow.
By Neil Dowling
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