Extended warranties and prepaid maintenance programs bring in immense revenue to dealerships. But many consumers aren’t aware that they can purchase extended warranties and prepaid maintenance plans after they’ve left the lot. Customers with newer cars will likely receive their dealer’s service coupon emails, thinking they won’t be requiring them. However, as their vehicles approaches two or more years of age, they will experience the need for repair and maintenance work.
Finance departments do their best to sell these at the point of purchase. So, why wouldn’t service advisors offer these programs during appointments?
Chances are they haven’t been educated to do so. How often do your service advisors inform customers that they are still eligible? The manufacturer and finance companies are. Many customers who have a 2-year-old car will receive numerous solicitations from finance companies for an extended warranty. They’ll even offer 0% interest and to apply it to his monthly payment. In contrast, they obtain zero offers from the dealership.
Are you sending relevant messages that cater to your diverse customer demographic?
Consider educating your service advisors. Train them and implement a process in which they inform ideal service candidates about these programs and incentivize them to sell them. You may find that your post-sale warranty and prepaid maintenance penetration increases. Not only does this increase revenue, but in the case of prepaid maintenance, it ensures that the customer is associated with your dealership for as long as they own the vehicle. When your customers begin looking for a new or additional vehicle, there will be no better person to sell to than someone who has previously purchased from you and regularly returns for service visits.