GM Financial Switches to Safe-Guard for Auto Dealership F&I Products

GM Financial will replace its portfolio of General Motors-branded finance and insurance products in the fourth quarter with a new line developed with Safe-Guard Products International.

Safe-Guard will replace Amynta Group as GM Protection’s white label F&I product partner. Amynta did not respond to a request for comment.

“We’re talking to dealers right now,” GM Financial senior vice president Matt St. Charles said. Automotive News Tuesday. St. Charles, who heads the GM Protection arm of GM Financial, said the reception has been positive.

St. Charles said the supplier switch and product redesign followed General Motors’ decision about 18 months ago to transfer F&I protection operations from its manufacturing business to GM Financial.

The shift led to a re-examination of the protection business and rethinking “what the experience should look like for both our dealers and our customers,” St. Charles said, adding that Safe-Guard seemed best. positioned to provide this experience.

St. Charles said the F&I product overhaul would include expanding coverage to variables such as lift kits and medium-duty trucks. GM wanted to design products that customers and dealers told the company they wanted.

“So we included some of those features in our covers,” he said.

GM Financial will also introduce new products specific to electric vehicles, including service contracts and prepaid maintenance, he said.

“GM Protection will underwrite vehicle protection products on most GM vehicles while enhancing the offering with Safe-Guard products specifically developed for our brands,” St. Charles said in a statement Monday. “This is part of our strategy to increase customer satisfaction and loyalty and to foster retention within our dealer network for any future service needs.”

Saint Charles said Automotive News the prices would be “very competitive” with the market and the products would be branded with the vehicle brand concerned, such as Cadillac or Buick.

The captive finance company will also continue, through the Safe-Guard partnership, to offer GM’s more than 4,000 dealerships the ability to sell GM F&I products covering used vehicles from other automakers. These products, formerly known as “myAuto,” will be rebranded as “Nomad,” according to St. Charles.

St. Charles said GM Protections underwrites core products, while Safe-Guard takes the risk on other GM-branded products. Safe-Guard would serve as the administrator on all products, he said.

The move to Safe-Guard gives GM the product provider’s experience and expertise in integrating with digital retail menu and F&I providers, St. Charles said. GM’s F&I products and pricing could be available on dealer platforms of choice, “making it easier to do business,” he said.

“That was a big part of the experience,” St. Charles said.

With Safe-Guard’s ability to integrate electronically, F&I managers at GM dealerships could avoid having to switch systems to calculate the price of F&I coverage on a vehicle or to fulfill an electronic contract.

“Safe-Guard’s expertise is in creating 100% customer-focused products, value-based business solutions, and data-driven sales and business development,” Safe-Guard CEO Randy said on Monday. Barkowitz, in a statement. “We are excited to launch this solution with GM Protection and support a world-class customer and dealer experience for these brands.”

The company’s first priority for the fourth quarter transition would be those already using the GM Financial-Amynta suite of products, but it is also talking to other dealerships, St. Charles said. He said a dealership can integrate GM Protection offerings quickly – within days or a week.

About 40 percent of GM’s more than 4,000 dealerships use GM Financial to fund their floor plans, giving the company a foot in the door to promote its F&I products, according to St. Charles.

“We’re very excited about what we’re bringing to market,” St. Charles said.

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