F&I Dealer Participation Programs
In addition to our ancillary product offerings, Sonsio wants to help you grow your dealership’s revenue potential through our dealer participation programs.
Profit participation is a critical part of how you can generate incremental income from F&I, capitalizing on the underwriting of the products you sell.
Retrospective (Retro) Profit Sharing Program
Sonsio’s Retro Profit Sharing Program allows you to participate in the underwriting profit from the Sonsio F&I products produced through your dealership(s).
The Sonsio Retrospective Profit Sharing Program has no risk of loss to the participating dealer. Sonsio holds all reserve funds and pays the annual earned underwriting profit each year as the premium from the underlying contracts is earned.
Benefits of Sonsio's Retro Profit Share Program:
- All products are administered by Sonsio and insured by an AM Best A-rated carrier
- Allows for participation in all underwriting profit produced (earned premium, less incurred claims and administrative fees)
- The participating dealer has no downside risk of loss
- Sonsio provides quarterly experience reports on all Retrospective Profit Sharing Program business
- Dealer is only taxed when annual distributions are paid
Reinsurance Program
Sonsio’s Reinsurance Program allows you to participate in 100% of the underwriting profit produced by your vehicle service contract business, as well as all the investment income earned on the reserve funds ceded to your reinsurance company trust account.
While this does have some downside risk, it has proven to be a successful option for dealers who have the patience and ability to wait for contract reserves to earn out the five to ten year terms of the underlying contracts reinsured.
Benefits of Sonsio's Reinsurance Program:
- All products are administered by Sonsio and insured by an AM Best A-rated carrier
- Does NOT charge a ceding fee
- Dealer owns the reinsurance company and participates in all of the investment earnings on business reinsured
- Dealer decides when to take distributions
- May be entitled to beneficial tax treatment
- Shareholders in the Program are only taxed when taxable distributions are taken and may be entitled to long-term capital gains tax rates on distributions
For more detailed information, see the Reinsurance Structure Options Supported by Sonsio below.
We want to help you find the best solution for your dealership to help maximize your profits on the F&I products you sell!
To Enroll in one of Sonsio's Participation Programs, speak with your Account Manager or call 1.866.608.9836
More Detailed Information:
Reinsurance Structure Options Supported by Sonsio
There are two choices for dealers who participate in a reinsured program:
Option #1 – Sonsio uses the dealer’s existing reinsurance company.
Option #2 – Dealer creates a new reinsurance company.
In both scenarios, the premium will reside in a separate trust account provided by Sonsio, and the funds cannot be commingled with any other reinsurance products' funds. The account will be in the name of Sonsio and will be for the benefit of the dealer's reinsurance company.
From independents to large automotive groups, Sonsio will work to develop a reinsurance model to best fit your objectives.
3 Reinsurance Models to Consider:
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To Enroll in one of Sonsio's Participation Programs, speak with your Account Manager or call 1.866.608.9836
