MONSTER MOTORS CASE STUDY: DRIVING RECORD-BREAKING F&I SUCCESS WITH ARC NATION
INTRODUCTION
Monster Motors, one of the nation's largest independent car dealerships, partnered with ARC Nation with a clear objective: to increase their back-end F&I gross profit, cut unnecessary fees, and gain complete transparency and control over their reinsurance structure. This case study showcases how strategic data integration, expanded product offerings, and revamped sales operations led to transformative results in under six months.
GOALS
F&I Gross Profit
- Increase volume and gross profit of aftermarket products.
- Improve rate and reserve income across all F&I transactions.
Fees
- Understand, evaluate, and reduce hidden or excessive fees tied to product administration and reinsurance companies.
Reinsurance
- Gain full clarity into reinsurance premiums, fee structures, claims, cancellations, and loss ratios to maximize profitability.
APPROACH
Data: We immediately integrated Monster Motors' first-party data into ARC's proprietary leaderboard software, giving management and F&I teams real-time visibility into their production compared against hundreds of peers nationwide, segmented by region. This benchmarking tool allowed us to measure performance improvements precisely and spot trends over time.
Product Lineup: We broadened Monster Motors' menu of F&I products, diversifying offerings to customers and creating multiple streams of income feeding into their reinsurance company. Menu integration helped ensure consistent product presentation and greater penetration rates.
Training and Department Structure: ARC conducted a comprehensive analysis of Monster Motors' F&I staffing, pay plans, and sales processes. After analysis, we recommended restructuring their department around industry best practices, focusing on improving turnover rates, menu presentations, and objection handling skills. Customized training programs empowered F&I managers to deliver higher gross per vehicle retailed (PVR) while improving customer satisfaction.
RESULTS
The results were and continue to be an extraordinary success story:
- $2,160 - Increased F&I PVR from $710 to $2,160 in just six months.
- 35% Fee Reduction - Cut reinsurance administrative fees by 35% compared to their previous administrator and agency.
- $8.1 Million Annual Impact - Achieved an $8.1 million increase in measurable gross profit annually, excluding fee savings and additional investment income gains.
CUSTOMER TESTIMONIAL
"One of the best and most profitable decisions we ever made as dealers was switching our warranty and reinsurance business to Justin M. Osburn and ARC. Best in the business!"
SUMMARY
Through a combination of strategic planning, real-time data tracking, enhanced product diversity, and tailored department restructuring, ARC helped Monster Motors unlock record-breaking gains in F&I profitability. This partnership showcases how ARC delivers measurable financial impact and builds lasting success for independent dealers nationwide.
We invite you to learn more about ARC by viewing our services, meeting our team and learning more about our reinsurance products. To contact us, give us a call 816-839-5040 or send us a private message here.
