This is How We Do Business

When it comes to starting a new relationship with an F&I service provider and administrator, the last thing dealers are likely to think about is how it might end. But there are important things to know about the final farewell before saying “I do” to a new financial partner.

The shocking reality of how dealers can be mistreated by a “trusted” partner recently came to light through this actual message we received from a dealer who was in the process of retiring. 

Here are the facts:  

  • Manufacturer finance groups are gouging their dealers at termination, even lifelong partners who are expected to retire with maximum return on their years of investment and hard work.
  • As shown in this example alone, one premium OEM service provider dealt an incredible blow to this dealer with a stunning 12% cession fee and 2.5% premium tax rate.  
  • Add to that a potential collateral increase as well as loss adjustment expense (LAE) and the aggregate loss is staggering. 
  • This specific dealer is facing a loss of $120,000 per $1 million as a result of the terms imposed here.

DOWC offers an alternative: a better, fairer, and much more lucrative alternative every dealer should be made aware of. At the outset, we set dealers up correctly with a transparent fee structure that ends as it begins.  


OEM F&I Services: 

  • Variable cession fee (in this example, an astronomical 12%) on runoff premium
  • Zero, or limited, access to unearned premium through the life of relationship 
  • Standard 2.5% premium tax  


  • 0% cession fee on runoff premium
  • Expanded access to wealth through various participation structures 
  • State-specific premium tax

To maximize success, we leverage each dealer’s state-specific tax rate instead of taking a one-size-fits-all approach, often resulting in less tax and fewer fees. 

Throughout the life of the partnership, DOWC’s terms remain transparent: 

  • Your admin fees do not change 
  • Your insurance fees do not change 
  • You are charged no loss adjustment expense (LAE) per claim or at termination 
  • The increase to the amount of collateral is kept to 125% at termination (vs. upwards of 150% others may require 
  • You are charged no cession fees  

Our goal is provide expanded and ongoing access to wealth rather than limit it, and certainly not to chip away at it further upon termination.

Even when the relationship reaches its conclusion, for whatever reason, we charge no additional fees and walk away as friends.  

Dealers must protect themselves from being victimized by their OEM finance group. The DOWC model is low-commitment and low-obligation. Our agreement allows for a 30-day notice to cancel – resulting in zero consequences and zero ceding fees. Given the financial impacts illustrated above, these are critical points to consider in choosing the right F&I partner.  

Contact us today to learn more about how DOWC does it differently.