Ally Will Roll Out Branded F&I Products Through 2016

Ally Financial Inc. is rolling out F&I products like service contracts and GAP using its own new, in-house brand, Ally Premier Protection, following a three-month pilot.

“It’s a big transition,” Ally Insurance President Doug Timmerman told Auto Finance News. He said the new Ally Premier Protection products should be fully rolled out in the second half of 2016.

As the former captive finance company for General Motors, Ally retains the right to use the GM Protection Plan brand for F&I products, even though Ally is now an independent company. That license expires in November 2016, but Ally and GM have already launched their own F&I product lineups to replace GMPP.

GM moved first, launching F&I products using the Buick, Cadillac, Chevrolet, and GMC brands in 2013, while Ally continued to offer GMPP products. That was getting confusing. GM is still Ally’s No. 1 customer, but over the last few years, Ally and GM have gradually phased out the exclusive nature of their relationship.

For instance, earlier this year GM started steering all its lease incentives to its new captive finance company, GM Financial, instead of dividing the incentives among Ally, GM Financial, and U.S. Bank. Ally still gets new-vehicle loan incentives from GM. GM sold majority control of GMAC way back in 2006, but GM kept a minority share of Ally until December 2013.

Meanwhile, Ally has been pursuing more business with dealerships that are not affiliated with GM or with another ex-partner, FCA US LLC, the former Chrysler Group. Ally’s own brand is a better fit for Ally’s more diverse customer base, Timmerman said.