We hear it all the time-- our Toyota (or Honda) customers just do not buy vehicle service agreements, because these cars do not break down. In reality, certain brands are more dependable than others. This also means that service agreements for these brands are less costly and a great value. Your job as a Business Manager is to guide your customers gently to realize that a factory-backed service agreement is an excellent choice. Always listen closely, and position yourself as a trusted counselor with the customer's best interests at heart. In this way, not only will you raise your penetration and dollars per car averages easily, but your CSI numbers will soar as well.
Ask your resistant customers if they would buy this car today with no factory warranty. Of course, their answer will be no. Further ask them if they feel the car is more likely to break down today or five years from now? When they nod in agreement, go for the close. "Can you see why adding a vehicle service agreement today is the right decision?" Sign them up!
Customers sometimes say they'll buy an after-market service agreement. Again, it is your job to explain why that is not the best idea. You might show them what Kelley Blue Book says, "You should consider the financial stability of the company offering the contract..." Being left holding a worthless piece of paper when a fly-by-night company disappears is the worst, especially if your vehicle needs expensive repairs.
The toughest customers might need you to reiterate that even excellent quality vehicles have parts that fail due to wear and tear, and most often that is after the factory warranty expires. Handy customers will feel they can make repairs themselves. Showing them some examples of high-ticket parts that will need replaced rather than repaired is helpful; if you have an actual failed part in your office, even better.
Point out to your customers that certified master mechanics frequently opt for vehicle service agreements on their personal vehicles; they understand the high cost of components and choose to minimize their cash outlay over the ownership period. Introduce them to one of your store's mechanics that chose a service agreement, and let him explain why!