WALKAWAY™ Frequently Asked Questions
Q. What
makes WALKAWAY unique?
A. WALKAWAY
is the first and only offering of its kind available in the United States to
the retail automotive industry. It is the only automotive debt cancellation
program, enabling dealers to offer the equivalent of a vehicle return program.
WALKAWAY allows customers to walk away from contractual obligations associated
with vehicle financing when negative debt equity exits. If a qualifying event
makes it impractical for customers to complete their financial commitment, they
can conveniently return their vehicle to the selling dealership and walk away.
WALKAWAY will cover up to $15,000 of any shortfall with no risk to the
dealership.
Q. What
are the benefits of WALKAWAY to dealerships?
A. WALKAWAY
offers the highest feature/benefit ratio in the marketplace at less than half
the cost to consumers when compared to traditional financial products. WALKAWAY
provides dealerships with:
• the
opportunity to generate attractive margins from sales of full-term policies;
• a
compelling incentive for consumers to choose them over another retail outlet;
• a
persuasive marketing tool to increase customer and co-signer peace-of-mind in
closing a transaction;
• easier
third-party credit approval of financially challenged applicants (the potential
to approve growing numbers of “B” and “C” credit buyers);
• continued customer goodwill in
the event that a vehicle is returned under the program; and
• a
powerful advertising tool and program that can be targeted to specific buying
groups such as senior citizens.
Q. What
life events does WALKAWAY cover?
A. WALKAWAY
provides coverage for:
• involuntary
job loss;
• disability;
• loss
of driver’s license;
• critical
illness;
• death
due to critical illness;
• personal
bankruptcy of the self-employed; and
• international
employment transfer.
WALKAWAY Elite also
covers:
• temporary
job layoff; and
• accidental
death.
WALKAWAY even covers
pre-existing conditions leading to disability, loss of license or critical
illness.
Q. Who is
the best customer for WALKAWAY?
A. WALKAWAY
will appeal to anyone who finances the purchase or lease of a car. In an
environment of employment uncertainty, rising consumer debt, aging baby
boomers, and the increased geographic mobility of the population, WALKAWAY
provides consumers with the peace
of mind knowing that if they experience a qualifying event, they can
return their vehicle to the dealership and cancel their debt without affecting
their credit rating.
Q. Is
WALKAWAY an insurance product?
A. No.
WALKAWAY is a debt cancellation waiver and functions as an addendum to the
installment sales contract or lease agreement. While the waiver itself is not
an insurance policy, the structure of the waiver includes an underlying
Contractual Liability Insurance Policy (CLIP) issued by an "A" rated
insurance carrier. This CLIP further protects the lender, the dealer and the
borrower from the risk of loss.
Q. How
does the WALKAWAY program work for dealers?
A. Authorized
WALKAWAY dealers participate by providing a complimentary 12-month waiver to
all new and used finance and lease customers. This complimentary waiver, which
covers up to $7,500 in negative equity, is used by salespeople to differentiate
their sales process, and gives customers the opportunity to become familiar with
WALKAWAY. When the customer upgrades their WALKAWAY selection, the dealer cost
is refunded and profits are realized. In Canada, where WALKAWAY is already
being offered, 52% of consumers choose to upgrade from the complimentary
12-month program to one of the other WALKAWAY offerings.
Q. What
is the administration process for a dealer?
A. WALKAWAY
waivers are managed over the Internet, using WALKAWAY’s Web-based
administration process. Everything is generated electronically, eliminating
manual remittances and the need to physically track contracts, thereby
dramatically reducing cycle times, error rates and costs.
Q. What
is the vehicle return process?
A. When a
consumer is confronted with a qualifying event, he or she contacts WALKAWAY
USA. Once WALKAWAY has accepted the vehicle for return, the customer is
instructed to return the vehicle to the selling dealer, who then has the option
to stock the car as inventory or dispose of it through wholesale channels.
Contact
Information
Public Relations:
Lee Slaton
214-528-1668
or
EFG Companies:
Jeff Beaver
972-445-8336