In today’s episode of Inside Automotive, Tony Wanderon, CEO of APCO Holdings, discussed the company’s latest acquisitions of Rider’s Advantage and Capital Administrative Professionals. He also shares insights into the current state of F&I in the industry, highlighting the challenges and opportunities for dealers in a post-COVID market.
Key Takeaways
1. According to Wanderon, the F&I landscape has significantly changed since the pandemic, shifting from high-margin service contracts to more affordable, bundled ancillary programs. He notes that dealers adapt to these changes by focusing on customer experience and value-added products.
2. Wanderon also mentions how rising vehicle costs and longer loan terms are increasing customers’ negative equity. This trend poses a significant challenge for dealers, complicating trade-ins and impacting F&I profitability.
3. Additionally, Wanderon emphasized the importance of effective digital marketing and upfront customer education in driving F&I sales. As customers become more budget-conscious, offering flexible, short-term service contracts could be key to maintaining profitability.
4. APCO Holdings’ recent acquisitions of Rider’s Advantage and Capital Administrative Professionals are part of a broader strategy to diversify their portfolio. These acquisitions strengthen APCO’s presence in the power sports, RV, and auto markets, catering to both franchised and independent dealers.
5. Nevertheless, APCO Holdings prioritizes acquiring companies with strong teams and cultural alignment, believing that the right people will drive long-term profitability. The company has made 34 acquisitions in the past six years and continues to see M&A as a vital component of its growth strategy.
"The profit will come if you've got the right people, and we've been able to really pick up some fantastic people over the last several years on the M&A side." – Tony Wanderon.
