Best Price for Extended Service Contract on Your Used Car
One of the major perks of buying a new car is that it comes with a warranty. This protects your customer’s investment from breakdowns and many vehicle issues that are beyond their control. But what about the used cars you sell? Customers may hesitate to buy a perfectly good used car because they’re worried about being solely responsible for the upkeep. Keep reading to learn more about how a vehicle assurance extended service contract could be an excellent option for your dealership to offer your customers, and how you can offer the best price on one.
What Is an Extended Service Contract?
First, it’s important to understand what an extended service contract is and, even more importantly, exactly what will be covered in that contract. An extended service contract is typically an additional level of protection provided on top of an existing manufacturer’s warranty. This coverage is going to vary from one provider to another, so be sure to ask plenty of questions and know exactly what you’re getting into if you’re using a third-party provider.
Providing Confidence to Your Customers
If the end consumer is buying from a person rather than a dealership, they can’t offer any reassurances about the vehicle’s upkeep. While the seller can’t provide the buyer with any kind of service contract themselves, depending on the age of the car, it may actually still be covered under the manufacturer’s warranty. However, if there is no warranty on it, customers would have to track down vehicle extended service companies that would be willing to provide individual plans.
However, dealerships like yours can provide reliable service coverage on the used cars that they sell. This provides you with an opportunity to appeal to customers who would otherwise hesitate to buy a used car. You can offer that reassurance that they’re not completely on their own if something goes wrong with their vehicle. And, they’ll be able to see that you’re confident enough in this vehicle’s reliability that you’re willing to back it up with that coverage.
Offering Different Levels of Service Coverage
The best way to offer an excellent price on auto service contracts is to offer different levels of coverage. Customers all have different concerns and different budgets, so it’s important to provide something for everyone. Coverages are typically broken down into three different levels:
- The highest level of coverage, often called a “bumper-to-bumper” coverage, covers nearly all aspects of the car’s functionality, including the on-board computer and electrical systems, which are vital to the operation of modern cars. And you can also include more cosmetic parts of the car on the coverage.
- The mid-range coverage covers many of the primary components for the vehicle’s performance, but not as much as the bumper-to-bumper coverage.
- The lowest level of coverage, sometimes called the “powertrain” coverage, covers the bare essentials. This includes the transmission, engine, driveshaft, and so on. However, it often won’t cover the electrical components.
Make sure that your salesmen understand the different levels of coverages you provide and can answer any questions customers might have. It might be helpful to have printouts readily available for clients to review what each level covers.
The Right Plan for Every Customer
Finally, your customers shouldn’t feel like their service contract is limited by the kind of car they choose to buy from you. After all, isn’t a vintage Mustang as worthy of a service contract as a shiny new Hyundai? That’s why we offer a variety of plans for vehicles of different ages and with different mileage so that you can offer the perfect plan for every customer, regardless of the vehicle they choose to buy from you. We’re among the best vehicle extended service contract companies in the country, and we can find the perfect coverage for your used car dealership. Give us a call to learn how you can provide the best contract for your customers at the best possible price.