Palmer Administration Services Ups It’s 2018 Forecast
To judge by the final quarterly estimates and YTD sales reports, 2017 has been a very good year for Palmer Administrative Services. As a result of these gratifying results and the fact that all indicators point to an even stronger year going forward, Palmer is pleased to announce that it is expecting a considerable rise in sales for 2018.
This rise in profitability is fueled by the extremely good deals that are being offered by dealers on lease return vehicles. In the aftermath of the Great Financial Crisis, manufacturers offered very generous lease terms in order to elevate demand for their products. This abnormal surge in ex-lease vehicles is finally hitting the used car market.
In turn, a large quantity of lease returns means that prices are very attractive in comparison to the cost of a new vehicle. Many people who normally buy new cars are thinking about buying used vehicles as a way of economizing. Since these vehicles are typically at or near the end of their factory warranty, they provide excellent opportunities for dealers to offer extended warranty programs that will protect their customers from the big ticket repairs that are covered by a manufacturer’s warranty on their new cars.
With the availability of warranty programs from Palmer Administration Services, it becomes much more likely that these people who are new to the used market will purchase a vehicle. The one potential deal breaker for them has always been the possibility of getting stuck with a huge repair bill. For dealers who offer the peace of mind that comes with every Palmer extended warranty contract, sales have been brisk. That means an improved bottom line for the members of Palmer’s dealer network as well as for the parent company itself.
While this large blip in high-quality lease returns will not last forever, it still has a ways to run before the supply dwindles. It is anticipation of this trend continuing for another several years that has led Palmer Administration Services to elevate its forward guidance for the next several quarters. Those dealers who have not elected to provide the option of extended warranty protections to their customers are certainly missing out on this great opportunity. Not only can they make more off of every sale that includes extended protection, but they are more likely to see their sales numbers improve in line with those of dealers which do provide these options to all of their customers.