The Road to ROI with F&I

How to Promote Vehicle Service Agreements in Your Dealership

Posted by Vanguard Dealer Services on Sep 20, 2017 12:20:00 PM

How to Promote Vehicle Service Agreements in Your Dealership.jpg

Dealerships understand the importance of vehicle service agreements as it poses great benefits for both the dealership and the company. For instance, a vehicle service agreement is a great option for customers who have no disposable cash to invest in repairs. At the same time, vehicle service agreements generate F&I revenue for the dealership. For this reason, we're going to show you how to effectively promote vehicle service agreements to your customers.

1. Properly Make the Offer: The simplest and probably one of the best ways to promote vehicle service agreements is by offering it to your customers face-to-face. This is the time you have your customer's undivided attention where you can explain the features and benefits of the agreement. Often times, it's not that customers aren't willing to invest, but that they aren't aware of certain services or how those services benefit them.

2. E-menu: While an e-menu seems to play a small role in getting customers to commit to a vehicle service agreement, it actually plays a big role in a very mobile world. What's great about an e-menu is that it increases the visibility of your dealership's services and gives customers an interactive way to consider their options. Your customer may not be ready to commit to a vehicle service agreement right away, but having the option to add it when they feel comfortable will increase their likelihood of actually doing so.

3. Offer Incentives: Unfortunately, explaining the benefits of a vehicle service agreement to your customers may not be enough, especially if they feel they can't afford it. This is when offering incentives for your customers come into play. Offering things such as gift cards or a free oil change upon committing to a vehicle service agreement will encourage customers to not dismiss the offer. People respond to instant gratification, and incentives are the perfect way to create long-term success with your customers. 

Vehicle service agreements are something that every customer should consider, but sometimes convincing customers of its necessity can be a task. Knowing how to effectively promote vehicle service agreements is integral to your dealership's success. Be sure to use these 3 tips on promoting vehicle service agreements in your dealership. If you have any questions in regards to vehicle service agreements or you want to know more about how we can help you, contact us and we will be happy to assist. 

Topics: vehicle service agreements