Archive for the ‘News’ Category



Cleveland, Ohio, April 10, 2019 – National Automotive Experts and NWAN (NAE/NWAN) is pleased to announce the launch of their brand new powersports service contract program.

The new program, Extreme Powersports, is designed to provide industry-leading mechanical breakdown protection for on-road motorcycles, autocycles, scooters, off-road motorcycles, ATVs, UTVs, golf carts, snowmobiles and personal watercraft. The new program provides new and pre-owned coverage for gas, diesel and electric units. Domestic, Asian and European manufactured units qualify for coverage. In addition, most Chinese and Indian manufacturers are also eligible for coverage.

“The Powersport industry plays an instrumental role in the growth of our business,” said David Neuenschwander, President of NAE/NWAN. “Two years ago, we launched the Powersport Industry’s first lifetime warranty, Warranty Forever®, for on-road Motorcycles, autocycles and scooters. Our new service contract program further enhances our value proposition and further amplifies our product offerings in the powersports industry.”

For individuals purchasing new units, coverage begins after the manufacturer’s warranty ends, allowing customers to purchase up to 5 years of add-on coverage that begins after the expiration of their OEM warranty. On pre-owned units, coverage can be purchased for up to 48 months.

“As the industry continues to adapt to market demands, we felt it was important to create a program that will grow with the industry, rather than simply react to it,” said Tom Johnson, Powersports Program Manager for NAE/NWAN. “I’m excited to offer this program to our clients with the knowledge it will continue to support them and their business needs for years to come.”

The new program is available for installation at eligible powersport dealerships on April 10, 2019. Contact Program Manager, Tom Johnson for additional information.

Lorain Community College Career Fair


National Automotive Experts/NWAN will be in attendance at the Lorain Community College Career Fair!

Thursday, April 4, 2019
Noon – 3 p.m.
LCCC John A. Spitzer Conference Center
1005 N. Abbe Rd. Elyria, OH


We are looking for positive, customer-focused individuals who are detail-oriented and have proven problem-solving skills. We take pride in working with a sense of urgency while building relationships that consist of an ethical foundation. We reward team members who work towards providing exceptional service levels. Will you be the next NAE Star?

We strive to hire people that believe serving our clients each and every day is the top priority, while priding ourselves in developing exemplary products that are built to perform.

Why should you be interested in NAE?

One of our Hiring Specialists will be available to discuss opportunities to join our great team.  See you at the Career Fair!



Dealer Investment Advantage


Dealer Investment Advantage

By Ryan Nelson


Tax deferral, preferential treatments of distributions and the ability to participate in the underwriting profit of the dealers F&I business are just a few of the reasons that the number of dealers participating in reinsurance has grown exponentially over the last two decades. Although dealers have certainly profited from these structures, there are some distinct disadvantages to several of the traditional programs being offered today – especially considering many of the underlying changes in our business.


The upside and downside


The appeal of 100% participation in underwriting profit and investment income certainly has a nice ring to it, and undoubtedly provides generous benefits to the shareholder over the long term. Long term is the issue. Traditionally dealers have to wait years, if not longer, to access any significant amount of surplus and put it to better use than earning a relatively low rate of return. Dealers are faced with staring at cession statements and trust balances that reflect hundreds of thousands, if not millions of dollars in ceded premium. At the same time, they can access only a small fraction of what has been ceded. This all too familiar situation requires the dealer to make a difficult decision; hold off on projects or acquisitions to grow the business, or face the reality of looking for external capital at a significantly higher cost of capital.


This problem is only being exacerbated by the lengthening of earning patterns as service contracts, limited warranties and even ancillary products are being written on longer and longer terms. Over the seven years it takes some contracts to fully earn, the dealer could be faced with the opportunity to expand their business operations with an acquisition, remodel the dealership, or pay down floor plan amongst many other capital requirements todays dealers face.


The current state of affairs:


I recently sat with a dealer who laughed out loud when I asked if it is any more expensive to operate a dealership today than it was 10-20 years ago. The laughter led the dealer to recount the variety of capital-intensive projects he is being asked to undertake while keeping his eye on long-term growth for his 100+ associates. At the same time, we were discussing the expense of running a dealership in today’s reality, while we simultaneously grabbed his cession statements and trust account documents from a big box provider to review them. The dealer was dismayed when we determined when he would be able to access any measurable amount of surplus to assist in daily operations. This led us to talk about how his operations would change if he was able to access the million plus dollars he had in unearned reserves. To say he was excited at the opportunity of putting HIS reinsurance money to work for him earlier, and more often, than what he was allowed to do through his current provider would be a monumental understatement.


The Dealer. The Investment. The Advantage.


The foremost purpose for a dealer to get into a participation structure is for the benefit of the dealer. This could be long-term wealth building, a way to prop up cash flow while the day-to-day operations of the store are seeing the profits undertake tremendous compression, or a way to fund expansion efforts. If the provider and agent do not place the dealers needs first, everyone loses. The dealer is the single most important factor in the analysis of determining which participation structure is right for their needs.


Once the dealer’s needs are determined and isolated, it is time to determine the desired investment results. Does the dealer want to sock money away over the long haul and use the participation structure as a walkaway, or retirement benefit? Or, does the dealer want to access as much cash as possible, as soon as possible, with the least amount of taxes and expense? More and more dealers are choosing the latter as a result of the current business climate. This means that the investment the dealer is making is not going into a trust account with a mix of cash equivalents, bonds and equities. Rather, it means the dealer is making their investment in their most precious assets — themselves and their dealerships.


The opportunity to access a large percentage of the unearned premiums early in the participation structures lifespan can prove transformational. Imagine if you are an average size dealer, selling an average amount of products and all of a sudden you are given the chance to access over a million dollars to use as the you see fit! Now imagine if the capital resource you are accessing this money from is yourself, and the interest repayment on the funds is paid – you guessed it – back to yourself. Go one step further and envision this happening every 90 days. A cash infusion into the business every 90 days with a repayment structure built to benefit the dealer – now that’s what I call an advantage.


The carriage and the horse(power):


There are certainly structures available which allow or mandate the dealer hold reserves in an accessible account, and these have been around for decades. Dealer Obligor programs and DOWCs are viable options if the dealer understands all the potential downsides each of those structures bring with them. DO and DOWC structures certainly have some benefits, but they are not for everyone, and the industry has proven every dealer is not for them. If they were the unicorns of participation structures, we would be operating in a homogenously structured environment. The fact is, some dealers are ideal fits for an Affiliated Reinsurance Company (CFC), while some dealers require no ceding limitations and are better suited for a Non-Controlled Foreign Corporation (NCFC) and there are some who demand no ceding limitations but are uncomfortable with NCFCs and their PFIC uncertainty. Again, the dealer should be provided options, and all of the dealer’s options should include the choice whether to access their unearned reserves or not. Regardless of the carriage (CFC, NCFC, or others), the horsepower – being the availability to put more of the dealer’s money to work for them sooner – should always be available to the dealer as a choice.


National Automotive Experts has been providing dealers and agents with innovative solutions for over two decades and has raised the table stakes by releasing their Dealer Investment Advantage program to Auto, Motorcycle and RV dealers – regardless of the carriage (structure). If you are a dealer and would like to put your money to work for you sooner and more frequently, reach out to schedule a reinsurance and proforma review today.

NAE/NWAN Announces Ryan Nelson as Vice President of Business Development

Strongsville, Ohio – National Automotive Experts (NAE) and NWAN, Inc. (NWAN) announce the promotion of Ryan Nelson to Vice President of Business Development.  Nelson has served as National Sales Manager of NAE/NWAN and has been part of the company for close to three years.  Prior to NAE/NWAN, he held leadership positions at Spencer Capital, Cunningham Lindsey and Zurich North America. 

“Ryan has become an invaluable asset to our organization since joining the company, said David Neuenschwander, President of NAE/NWAN.  “He has extensive experience in building and leading teams and his track record for delivering results is unmatched.  Ryan makes us better and will get us where we want to go.” 

“I am excited about the future of NAE/NWAN, as we have a lot of momentum heading into 2019 and beyond,” said Nelson.  “When I started with NAE/NWAN, I knew that the company offered me the opportunity to bring my entrepreneurial spirit to a nimble and thriving company. The next few years will be pivotal in the Auto, RV and Powersports arena and I am looking forward to driving our growth in those industries.” 

“Every day, I look at the passion and drive that Ryan brings to our company and know he is the perfect person to lead our Business Development team,” said Kelly Price, CEO of NAE/NWAN.  “It is a true honor to work with him.”