You Can’t Afford to Guess Most direct-to-consumer marketers in the vehicle service contract (VSC) and home warranty space know their topline numbers. Sales volume. Cancel rate. Cost per lead. But those numbers don’t tell you what’s really happening. They don’t show you which reps are killing margin, which campaigns are quietly failing, or where your […]
The Rule of 78s is a revenue recognition method used in the F&I industry that front-loads earnings—recognizing more revenue in the early months of a contract and less in the later ones. Unlike the Pro Rata method, which spreads revenue evenly across the contract term, Rule of 78s assigns higher earnings to earlier periods based […]
The Reverse Rule of 78s is a revenue recognition method that back-loads the earnings curve—recognizing less revenue in the early months of a contract and more in the later months. It uses the same weighted formula as the traditional Rule of 78s but flips the order, assigning higher earnings to later periods. Unlike Pro Rata, […]
If you’re administering Vehicle Service Contracts, VSC cancellations aren’t just noise—they’re a direct hit to profitability. Refund exposure. Margin compression. Loss ratio volatility. Whether contracts are sold direct-to-consumer or through dealerships, VSC cancellations are a real and rising cost. And yet, most administrators aren’t actively tracking how, when, and where these VSC cancellations are happening. […]
An earnings curve determines how revenue is recognized over time for an F&I contracts, such as VSCs, windshield, PDR, appearance protection, and tire & wheel. The method you choose directly affects reported loss ratios, reserving, valuation, and timing of earnings and cash flow. The four most common earnings curve methodologies are: Rule of 78s Reverse rule […]
If you’re selling Vehicle Service Contracts (VSCs) directly to consumers, you’re operating in a high-cancel environment. Many marketers see 40–80% of contracts cancel, and flat cancels—those within 30 days—are especially painful. They erase margin, trigger chargebacks, and undermine performance metrics. But not all VSC cancellations are created equal. Contracts that cancel later are far more […]
In October 2024, 1.31 million new vehicles were estimated to have been sold across the United States.
Cars continue to be more expensive and less affordable. In September 2024, the average price of a new car was $48,423, a 0.9% increase over August but a 0.4% decrease from September 2023.
In August 2024, 1.42 million new vehicles were estimated to have been sold across the United States. This marks a 9.9% increase over July and a 6.1% increase compared to August 2023.
In July 2024, 1.29 million new vehicles were estimated to have been sold across the United States. This marks a 3.4% decrease from June and a 1.3% decrease compared to July 2023.