Pillar 01
MVP entryF&I Revenue & Compliance:
the fastest lever you still own.
Reserve compression, product-mix variance, cancellation drag, and handoff losses before BC RIA disclosure reshapes what you can earn.
Where front-line income gets compressed
The problem, framed honestly.
Per-copy income is the most measurable profit center in the dealership, and also the first one that quietly compresses when lenders tighten or when staff turn over.
On January 1, 2027, the BC Restricted Insurance Agent regime reshapes what appearance protection, GAP, and warranty products look like on a contract. Most dealers have not modeled the impact.
Mechanus IQ surfaces per-copy variance, reserve compression, cancellation drag, and handoff losses before they show up on the monthly variance report.
Signal inventory
What Mechanus IQ actually looks for.
Each signal corresponds to one or more verified vectors in the Mechanus IQ detection surface. Full inventory: intelligence model.
01
Reserve compression by lender, by term, by advisor
Rate bump held, but reserve per-copy drops 40 to 80 dollars as lenders tighten spread. Usually invisible on the gross line.
02
Product penetration variance across the desk
VSC, GAP, and appearance attach rates drift per advisor as close tactics change. The book number looks fine; the per-advisor number does not.
03
Cancellation drag on chargebacks
Cancellations concentrated on specific advisors, specific products, or specific lenders. Pattern usually traces to a close that is not sticking.
04
Handoff-to-F&I loss rate
Deals that cross from sales to F&I and lose a product, a term, or the whole deal on the desk. Fix the handoff friction, recover the deal.
05
BC RIA 2027 disclosure exposure
Appearance-style product classification, GAP, warranty, and proposed Rule 7(25) disclosure posture measured against the coming RIA regime.
Gates, not recommendations
The problems we surface do not come back.
Every finding becomes a permanent enforcement gate inside the workflow. Hard gates block the action until resolved. Soft gates page an operator on drift. Audit gates flag the event for scheduled review. How gates work.
Hard gate
Deal-funding block on missing compliance fields
A deal cannot fund until rate disclosure, product disclosure, and proposed compensation-trigger fields are filled and legible.
Blocks the action until resolved
Soft gate
Advisor-level variance alert
DP and GM are paged when an advisor drifts more than 15% below the trailing-90 baseline on reserve or penetration.
Pages the relevant operator on drift
Audit gate
Cancellation cohort flag
Cancellations are tagged by product + lender + advisor and surfaced in the monthly close for review before the next comp cycle.
Flags the event for scheduled review
Regulatory note
BC RIA 2027 effective January 1, 2027 under the Restricted Insurance Agent Licence Regulation, B.C. Reg. 245/2025 (OIC 598/2025). Source: BCFSA Regulatory Statement 24-008. ICoBC proposed Rule 7(25) contains a compensation/benefit disclosure trigger above 30% of client price; it is proposed regulator text, broader than commission alone, and remains subject to final adopted Council Rules.
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