Generate Immediate Cash Flow with our Dealer Obligor Program

If increased cash flow is important for your dealership right now, leveraging a program designed for cash flow generation can help you drive immediate revenue without sacrificing your customers’ experience. With the First Extended Dealer Obligor program, you make the most out of every service contract you sell. And you control the money generated.

How it works

  1. Dealer sells a car
  2. The F&I team sells a vehicle service contract for that car
  3. Contract and admin fee go to First Extended— reserve goes to dealership account
  4. Administrator adjudicates claims for contract life
  5. Dealership has 100% access to reserve and keeps 100% of underwriting profit and investment income



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Cash Flow Example

Selling 75 service contracts per month with a $700 reserve cost
The chart below calculates the cash reserve at a dealership that sells 150 retail units per month, or 1,800 units per year, at a 50% service contract penetration rate. In this participation model, the dealer can immediately make use of the reserve until it’s needed for refunds, claims and taxes.

Time PeriodCash Reserve Generated
After 1 month$52,500
After 6 months$315,000
After 12 months$630,000
After 24 months$1,260,000
After 36 months$1,890,000
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What First Extended Dealer Obligor Could Do for Your Dealership

The First Extended Dealer Obligor program offers a comprehensive menu of products for new and used vehicles, including certified pre-owned programs and prepaid vehicle maintenance plans. Assurant provides all the marketing materials, documents and contractual liability insurance while you maintain total control of the income generated. This means it’s easy for you to establish your own service and maintenance programs and, unlike traditional programs, you hold the cash reserve, providing financial leverage and investment income potential.

First Extended can be up and running at your dealership in a matter of weeks. Assurant will support the transition from start to finish, making the process easy and transparent for you.

And, should your goals change and you need to adjust your participation position, you can move from one participation plan to another without any switching costs or loss of productivity at the dealership.

You own the program and make decisions about

  • Compensation
  • Reimbursement guideline strategies
  • Rate guideline strategies
  • Coverage strategies
  • Customer satisfaction
  • Customer retention
  • Employee satisfaction
  • Expense minimizationv



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You direct 100% of your investment income

  • Provides a variety of investment options
  • Builds your dealerships
  • Sustains the continuity of ongoing operations
  • Allows access to capital

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Dealer Obligor Program Features

  • Immediate cash flow: unlike traditional service-contract programs, you hold the reserve, providing financial leverage and investment income potential
  • Superior loss control: with advanced administrative capabilities
  • Management reporting: our reporting suite provides real-time data for enrollment, claims, cancellations, and cash flow & reserve analysis
  • World-class claims administration: our claims infrastructure assures customer satisfaction
  • Industry-leading account oversight: from the field to the home office, we are your program partner
  • Highly Rated: backed by the Virginia Surety Company, Incorporated: rated A (Excellent) by A. M. Best Company
  • Lender compliant: accepted most major manufacturers and financial institutions
  • Robust product offerings: from service contracts to maintenance agreements, our product offerings are designed to provide what you need, when you need it
  • Also available for recreational vehicles, motorcycles, and powersports vehicles
  • Leadership, stability, and financial strength: Our commitment to First Extended makes it the leading choice of dealers nationwide

Connect with Us for More Info or a Free Revenue Analysis

Reach out to Assurant’s team of experts to explore the Dealer Obligor program today. With our team behind you, you can have the program up and running at your dealership in a matter of weeks.



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