Preferred Dealer Solutions

What Preferred Dealer Solutions does

Preferred Dealer Solutions (PDS), founded in 2010 and headquartered in Rockford, Michigan, is a family-owned services firm that specializes in forming and managing Dealer-Affiliated Reinsurance Companies (Producer Affiliated Reinsurance) for Buy Here Pay Here (BHPH), independent used-car dealers, and automotive recyclers across the United States. Its core offering enables dealers to own and operate their own reinsurance vehicles, capturing underwriting profits and investment income on F&I products — including limited warranties, vehicle service contracts (VSC), guaranteed asset protection (GAP), collateral protection insurance (CPI), and vendor single interest (VSI) — that would otherwise accrue to third-party administrators. The company is led by President Kevin Stoll and operates a small core team (approximately 7 named staff) supplemented by a regional Texas office.

PDS delivers its services through a proprietary cloud-based Dealer Portal (with separate e-contracting and remittance portals) that provides monthly financial statements, cession statements, premium flow monitoring, and cash flow tracking for each dealer's reinsurance company. The platform is supported by a curated partner ecosystem including TIADA (official CPO Program provider), NIADA, Precision Claims (claims administration with a 1-hour approval SLA), American Risk Services (CPI issuance), Mercantile Bank (domestic reserve custody), and Morgan Stanley (investment management of premium reserves). On top of reinsurance management, PDS distributes F&I products (Limited Warranties, VSC, GAP, CPI, VSI), a Certified Pre-Owned program, a dealership insurance suite (garage liability, garage keepers, workers comp, commercial umbrella, property), and an Income Development consulting practice for F&I sales training and compliance.

The business model combines recurring annual management fees on each dealer-affiliated reinsurance company with transaction-based F&I product premiums and professional services revenue from income development consulting. Pricing is not publicly disclosed but consists of an annual management fee layered with per-product reinsurance costs, targeting dealers that sell approximately 20-25 vehicles per month. Go-to-market is sales-led, leveraging direct outreach, industry trade association partnerships, and a referral network across complementary F&I vendors.

Name

Preferred Dealer Solutions

Legal name

Preferred Dealer Solutions

Website

https://preferreddealersolutions.com

Company type

Private

Founded year

2010

Operating status

Operating

Headcount range

11–50 employees

Short description

Preferred Dealer Solutions forms and manages Dealer-Affiliated Reinsurance Companies for BHPH, independent used-car dealers, and automotive recyclers, enabling them to capture underwriting profits on F&I products such as warranties, VSC, GAP, CPI, and VSI.

Ownership category

akta.pro rank

Product category

Reinsurance Management and F&I Services

akta.pro primary industry

Dealer-Sold & F&I Administered Service Contracts (Dealer Obligors) (FSAJALAD)

akta.pro secondary industries

Product Liability Reinsurance (FSAOABAI), Garage Liability & Dealers (Auto Dealers, Repair Shops) (FSAJABAF)

Keywords

• Reinsurance management services
• F&I products
• Dealer-affiliated reinsurance
• Limited warranties
• Vehicle service contracts

Headquarters

HQ city

Rockford

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Others

Revenue model

1. Reinsurance Formation & Management Services: Annual management fees for overseeing dealer-affiliated reinsurance companies, including company setup, staff training, ongoing assistance, and performance monitoring.
2. F&I Product Premiums: Reinsurable products including Limited Warranties, Vehicle Service Contracts, Guaranteed Asset Protection (GAP), Collateral Protection Insurance (CPI), Vendor Single Interest (VSI), and Tire & Wheel programs. Dealers participate in underwriting profits from these products.
3. Income Development Consulting: F&I sales training, monthly sales goals, product training, and compliance support to increase dealership backend profitability.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels4 records

Core offering

Preferred Dealer Solutions assists automotive dealers and finance companies in forming and managing Dealer-Affiliated (Producer Affiliated) Reinsurance Companies, enabling them to participate in underwriting profits and investment income from F&I products. The firm also distributes reinsurable F&I products including Limited Warranties, Vehicle Service Contracts, GAP, Collateral Protection Insurance, and Vendor Single Interest, plus dealership insurance and Income Development consulting.

Product overview

Preferred Dealer Solutions operates as a unified F&I and reinsurance management platform that assists BHPH (Buy Here Pay Here), Independent, and Automotive Recycler dealers in forming and managing Dealer-Affiliated Reinsurance Companies. The platform's core offerings include Reinsurance Formation & Management, Reinsurance Reporting, and a Dealer Portal, through which dealers access financial statements, submit remits, and monitor their reinsurance operations. The product suite is structured around three tiers: (1) Reinsurance Core — Reinsurance Formation & Management, Reinsurance Reporting, and the Dealer Portal; (2) F&I Products — Limited Warranties (with CPO Solutions), Vehicle Service Contracts (TVP and UVP programs), GAP Coverage, Collateral Protection Insurance (CPI), and Vendor Single Interest (VSI); and (3) Dealer Support Services — Dealership Insurance (garage liability, garage keepers, workers comp, etc.) and Income Development consulting (F&I training, compliance, monthly goal-setting). The company also offers a specialized reinsurance track for Automotive Recyclers.

Differentiator

Problem solved

Functional benefit

Products and services

• Reinsurance Formation & Management

Quantifiable outcome

• Claim approval and payment within 1 hour
• +2 more outcomes

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

Seven partnerships are on record, tiered core and minor.

• TIADA (Texas Independent Auto Dealers Association)coreGTM or Marketing PartnerOfficial provider of the TIADA CPO (Certified Pre-Owned) Program. Strategic marketing partnership positioning PDS as the preferred F&I and reinsurance partner for Texas independent dealers.
• Precision Claims, LLCcoreStrategic or Co-development PartnerClaims processing partner handling mechanical breakdown claims. Located at 26 N. Main, Rockford MI. Provides efficient claims processing with 1-hour approval and payment turnaround. Contact: [email protected], 877-315-2805
• American Risk ServicescoreTechnology or IntegrationIssues collateral protection insurance (CPI) policies for finance companies. Located at 1130 Congress Ave, Cincinnati OH 45246. Contact: Kirk Saunders, [email protected], 513-792-6300
• Old Republic Risk ManagementminorOthersRisk management partner shown in partnership logos section.
• Endurance Dealer ServicesminorOthersDealer services partner shown in partnership logos section.
• NIADA (National Independent Auto Dealers Association)coreGTM or Marketing PartnerKevin Stoll spoke at 2022 NIADA Convention & Expo in Las Vegas on reinsurance compliance. Active participation in NIADA events and education.
• Reinsurance Associates LLCminorStrategic or Co-development PartnerReinsurance partner shown in partnership logos section.

Scale indicators3 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Axiom Product Administration: Specialized F&I product administrator offering reinsurance and warranty programs for independent and BHPH dealers — closely aligned with PDS's target segment and reinsurance formation service.
• National Auto Care: F&I product administrator providing extended service contracts, GAP, tire & wheel, and other ancillary products for independent and franchise dealers — directly comparable product/customer overlap with PDS.
• EasyCare: Major F&I product administrator offering extended warranties, GAP, and other dealer-sold protection products with reinsurance-backed programs — directly comparable to PDS's F&I and reinsurance offering at significantly larger scale.
• American Risk Services: Issues collateral protection insurance (CPI) and related specialty coverages for finance companies — PDS lists American Risk Services as a CPI issuance partner, addressing overlapping dealer/lender customers with adjacent products.
• Endurance Dealer Services: F&I product provider and warranty administrator with extended warranty, GAP, and other protection products for auto dealers — PDS lists Endurance as a partner, and the businesses address the same dealer customers with overlapping product offerings.
• Portfolio Reinsurance: Captive reinsurance company formation and management provider for auto dealers — operates the same dealer-affiliated reinsurance model as PDS for independent and BHPH dealers.

Broad incumbents

• Assurant Dealer Services: Large diversified F&I product administrator (VSCs, GAP, tire & wheel, paintless dent repair) serving franchised and independent dealers — overlaps with PDS's product suite but operates at vastly greater scale and as part of a public insurance holding company.
• Zurich North America: Major insurance carrier offering dealer F&I programs, reinsurance capacity, and garage/dealership commercial insurance — overlaps with PDS's product set as part of a much broader insurance portfolio.
• Allstate Dealer Services: Insurance division offering F&I products and dealer-affiliated reinsurance programs to franchised and independent dealers — competes with PDS in dealer-sold warranties and protection products, though at substantially greater scale and distribution.
• Old Republic Risk Management: Specialty P&C insurance and reinsurance subsidiary of Old Republic International — PDS lists Old Republic as a risk-management partner, and the firm operates dealer-affiliated reinsurance and warranty programs at substantially larger scale.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/preferreddealersolutions
• Facebookfacebook.com/PreferredDealerSolutions

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Preferred Dealer Solutions