How To Leverage Cost of Repairs In the VSC Discussion
Seemingly every used car dealer has their own tactic or strategy to get customers on board with the value of a vehicle service contract. But few strategies are as effective as talking cost of repairs. Knowing how much it can cost out of pocket to repair components that commonly breakdown can help bring a dose of reality to the customer who thinks “It can’t happen to me.”
Here are some ways you can deliver an impactful message about the cost of common repairs:
- Be Honest. A customer may be asking why you’re trying to sell a service contract if you’ve inspected and reconditioned the vehicle already. It’s a harsh fact that buying a used car does carry a certain level of risk, and it’s important to protect yourself from that risk, especially with the expensive high-tech components in today’s modern vehicles.
- Talk monthly budget. So much of the car-buying experience deals in monthly budgets. Your customer is likely stretching to meet the monthly payment figure they’ve given you as a target. Now factor in the cost of an unexpected repair into that formula. Is there room to pay for that on top of all their other expenses? In most cases, the answer is no.
- Get into the details. But not too deep. Don’t get lost in how much every little component in a vehicle can cost. Focus on some of the bigger ticket items that can fail such as an engine, transmission, power steering, fuel pumps, head gaskets, air conditioning a few others – but not much more.
- Have documentation ready. You’ve dealt with plenty of customers who have been protected from a vehicle service contract. Get your hands on claims reports and repair invoices to show the customer how a VSC came to the rescue for past customers of yours – customers who most likely also sat in your office saying “It can’t happen to me.”