More Coverage. Fewer No’s.
It’s not always easy to get customers to buy into the best vehicle service contract options, but the little bit of extra effort in the F&I office could be the big difference that turns a one-time sale into a repeat customer for life.
We’re not breaking any news by telling you that customers are better protected and have a better experience from a better product. The difficulty arises when it comes time to convince a customer that spending more today – on top of one of the most expensive purchases they’ll make in their lives – will pay off for them in the long run.
With a focused approach that starts with your overall F&I strategy, you can set yourself up to be more successful upselling customers into better coverage levels that fit their lifestyles. Some prep work, a new outlook and the right actions in the F&I office are all it takes to better protect your customers – and your reputation – for the long haul.
It Starts With Your Lending. 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.
Think Big Picture. 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. And when that happens, your customers will be more likely to come back for their next vehicles and refer you to friends and family.
Show What’s Missing. 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. 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. 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.
Highlight Bonus Options. 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. 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.
Demonstrate Value In Add-Ons. 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. 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.