Vehicle service agreements are an essential income stream for any dealership and they provide the protection your customers may need in the future.
So, why do so many dealerships struggle to get their customers on board with a vehicle service contract after they purchase their vehicle?
Well, one reason is that public opinion is firmly against purchasing a vehicle service agreement. Just about every "expert" blog, consumer shopping website or car buying forum is littered with warnings and reasons why vehicle service agreements are a waste of money.
Understandably, F&I teams have a difficult time combating public opinion and successfully positioning coverage options to their customers.
However, selling vehicle service agreements is absolutely possible and can be done on a consistent basis if your F&I team understands how to have the right conversation with your customers.
If your F&I team is struggling to close deals, then we have some advice that will help your dealership increase its vehicle service agreement sales.
Educate, Don't Push
Having a robust catalog of coverage options for your customers to choose from will give your F&I team more options to fit their customers' needs.
However, your team needs to be able to educate your customers on coverage without those customers feeling "sold to" if they want to be successful. Most failed sales offers begin with asking the customer if they're interested in a vehicle coverage plan. This is going to result in a "no" 99% of the time.
Instead, start the interaction by explaining the limitations of the manufacturer's warranty and providing scenarios where they may need additional coverage.
Once your customers are educated on what's not covered by the manufacturer and can see the benefits of being fully protected, it isn't a question of if they're buying a service agreement, it's a matter of which one best fits their needs.
Consistency is Key
Selling a customer a vehicle service agreement shouldn't be a fluke. In order to be consistently successful, your team has to educate 100% of your customers on their coverage options.
Your customers can't buy something if they don't know it exists. Encourage your teams to practice transitioning into the conversation we outlined above every time they sit across from a customer.
By consistently offering coverage solutions to your customers, you not only increase sales for your dealership, but you provide a consistent and reliable experience to your customers.
These are just the beginnings of an overall sales strategy that will need to be developed around vehicle service agreements. However, by simply implementing the ideas outlined here, you'll be able to start creating a successful foundation that your team can build on to continually increase your dealership's vehicle service agreement sales.