A recent blog post from GWC Warranty not only reiterated how your dealership customers can benefit immensely from a robust vehicle service contract, but the provider also emphasized how the finance company connected to the retail installment sales contract can have a better addition to its portfolio, too.
Along with going into different strategy to help your F&I office staff with its VSC presentation, GWC Warranty acknowledged, “At times it can be a struggle to get the back-end advance you need for stronger vehicle service contracts. That’s why it’s so important to work with lenders who see the value it provides them as well.
“Lenders who understand that a service contract can reduce late or missed payments will be more amenable to providing room for service contracts on the back end,” GWC Warranty continued in this blog post.
Once the dealership is aligned with finance companies that see the value of VSCs, GWC Warranty suggested that the store should “think big picture,” as F&I office representatives are making their sales presentations.
“Sure, you can make a quick profit on a more affordable service contract coverage level, but what happens with that 90-day coverage when six months after a purchase a major repair is required? Your dealership’s reputation is on the line in these instances, and a vehicle service contract could be the saving grace that protects your reputation in the event of a major repair,” GWC Warranty said.
“And when that happens, your customers will be more likely to come back for their next vehicles and refer you to friends and family,” the company continued.
Another recommendation GWC Warranty made revolved around the bonus options that can be included with a VSC.
“Another great selling point for customers could be additional options higher levels of coverage provide. Things like roadside assistance, towing and travel reimbursements are important aspects of higher levels of coverage that help customers feel more secure in their new vehicles,” GWC Warranty said.
“For customers looking for that peace of mind, these bonus options could be just what you need to get your customer into longer-term coverage,” the company continued.
While roadside assistance might be an easy benefit for customers to imagine, GWC Warranty also suggested that dealership staff go to great lengths to explain the more intricate advantages of robust VSCs.
“Packages you tack on to higher level coverage are also beneficial to customers, but only if you help them realize it. Coverage for specialty components like high-tech electronics in luxury vehicles protect your customers when expensive, little-known components break down,” GWC Warranty said.
“Other items like GWC’s No Worries, Just Drive package that provide added benefits like upgraded rental and towing coverage, a maintenance voucher, gas card, identity protection and other valuable upgrades sell themselves when you show the value of what they get for a relatively low cost,” the company went on to say.
Finally, GWC Warranty mentioned some general sales approaches that’s worked well in other dealerships that can deliver all of these benefits to consumers — and finance companies.
“Once you’ve sat down in the F&I office, it’s now time to show your customer why he or she needs that higher level of coverage. The best way to go about this is to work your way through your service contract offering backwards,” GWC Warranty said.
“Start with the highest level of coverage and if the customer isn’t sold, work back a level while calling out everything they’d be missing out on by saving a few bucks,” the company continued. “Knowing the cost of some common repairs or having past repair invoices on hand could help illustrate your point when explaining expensive component coverage the customer could be missing out on.”