Dealers who sell other makes with their own branded products, such as BMW and Mercedes-Benz, say customers see greater value in factory-backed F&I products. They say sales penetration increases as well.
The move also reflects growth for Hyundai Motor America and its captive finance company in the last few years.
The Hyundai brand was the No. 6 seller in the U.S. market through August of this year, behind Ford, Chevrolet, Toyota, Honda and Nissan. Five years ago, Hyundai was No. 9.
"Hyundai has gotten to the point, like other large OEMs, where it makes sense for them to have their own products," says Scott Fink, CEO of Hyundai of New Port Richey (Fla.).
Rick Christensen, Hyundai Capital America vice president and general manager, said last week the captive expects to introduce a complete menu of in-house F&I products bearing the Hyundai brand, including extended-service contracts, prepaid maintenance, GAP, key replacement and tire-and-wheel plans.
"We want to be, in essence, for the dealers a one-stop shop," he said.
Hyundai Capital America services both the Hyundai and Kia brands, but for now, Kia-branded F&I products appear to be on the back burner.
"We are only focusing on Hyundai at this time," Christensen said.
Hyundai Capital America will use Safe-Guard Products International as its administrator.
Hyundai Motor America, which has had an administrator relationship with JM&A for almost six years, is ending that tie. JM&A has offered a shorter menu of F&I products via Hyundai dealerships, including extended-service contracts with the Hyundai brand plus some of JM&A’s own products. Hyundai Capital America’s new menu will be longer, and all products will carry the Hyundai brand, Christensen said.
Hyundai Motor America and JM&A had extended their original five-year relationship for an additional year, which expires at the end of 2012.
"It's a situation where our business had grown," Christensen said. "We're looking at the pieces of our business three or four years ago, and we weren't doing very much with our captive finance company. All pieces, all messages, need to tie together internally."