Optional products or services sold in addition to the vehicle, often at the time of sale or financing.
Additional products like dent repair or appearance protection offered with vehicle purchases.
Having documentation and processes in place to pass a regulatory or internal audit.
Manages the claims and logistics of an aftermarket product.
Pays off the auto loan if the borrower dies or becomes disabled.
A formal request to terminate an aftermarket product before its expiration.
When a canceled product results in repayment from the dealership or lender to the provider.
The portion of the interest rate or F&I product markup that a dealer retains as profit when arranging financing or selling aftermarket products.
Technically only applies to OEM-backed warranties; commonly used to refer to third-party service contracts.
The dealership department responsible for securing financing and offering aftermarket products.
Covers the difference between the vehicle’s value and the loan balance if the car is totaled or stolen.
Covers replacement of lost or damaged vehicle keys or key fobs.
Prepaid plans covering scheduled vehicle maintenance.
The entity that underwrites and stands behind the aftermarket product.
Same as Product Provider
Covers minor dent repairs without repainting.
A refund calculation method that returns the unused portion of an aftermarket products premium or cost based on time or mileage remainingwhichever applies.
The formula used to calculate refunds for canceled aftermarket products, e.g., Pro Rata or Rule of 78s.
The process of sending collected fees for aftermarket products to the product provider.
The legal document outlining the terms of a financed vehicle purchase.
Government authority overseeing aftermarket product compliance and conduct.
A refund calculation method that front-loads interest or premium earnings in a loan or contract. Its named after the sum of the digits from 1 to 12 (1+2+ +12 = 78), which reflects how the refund is calculated across a 12-month term. In this method, the earliest months are weighted more heavilymeaning the lender or provider earns more up front, and the consumer gets less back if the loan or product is canceled early.
In this method, the earliest months are weighted more heavilymeaning the lender or provider earns more up front, and the consumer gets less back if the loan or product is canceled early.
Covers repair or replacement of tires and wheels damaged by road hazards.
The portion of a product premium not yet ‘earned’ due to coverage still being in effect.
A contract to repair or replace certain vehicle components for a specified period and mileage.
