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Buy Here Pay Here Car Dealerships and VSC Program

New car dealer clients are always looking for vehicle service contracts (VSC) for their Buy Here Pay Here (BHPH) dealerships. This can be difficult, though, because the dealership may believe that adding a VSC program will significantly raise prices and make collections harder. Here are a few good tips to help you find the right VSC program for your BHPH dealership.

Understand the Program

The first thing you should do as a dealer client is research what service contract is so you can educate your BHPH dealers. Sometimes called an extended vehicle protection plan, an SVC is a promise your dealers make to customers to perform or pay for specific repairs or services. The contract costs extra and can be purchased at any time.

Research Companies

The second most important thing to do is to get to know every company you are considering for your dealership. Find out if the company is registered in the state they do business in; if they have met all state requirements; and if they are associated with and support the state’s independent dealer association.

Repossessing a Vehicle

You should also know that the repossession of a vehicle is a normal occurrence. You may have to make a few phone calls, but you need to find out if the repo company will let your buy here, pay here dealership transfer the extended vehicles protection plan to a new owner if a car is repossessed or if they charge for a new contract.

Forget about Markups

Regarding new-car sales, banks are always willing to finance best-extended vehicle protection plans. They also mark up the service contract so your BHPH dealership can make a profit from sales. Just remember your dealers you will have to sacrifice a little of the markup to protect your dealer’s investment.

Questions to Ask

Here is a list of a few questions you should ask a vehicle contract service provider: What would you consider as too high for claims-to-premiums? When does the VSC go into effect in terms of delivery date? Will customers receive a deductible for repairs? Does roadside assistance come with the vehicle service contract? Will the provider of the contract pay claims for repairs done at the service department at the BHPH dealership?

Dealership

Put Customers First

When you find the best vehicle protection plan for your BHPH dealership, talk about how to incorporate the contract costs without overcharging consumers. This will give consumers an idea of how they will benefit from purchasing extended vehicle protection services. When a car is in need of repair, make sure your dealers help schedule appointments and refer shops you recommend to them personally. This is important because both of you hold a financial interest in the cars the BHPH dealer sells, which helps create lasting relationships with consumers and increases profits for the companies involved.

If you want more tips about finding the right SVC service for your BHPH dealership, contact Freedom Warranty LLC online today.

Long Block Drivetrain Upgrade

Freedom Warranty Offers Long Block Upgrade to Popular Lifetime Drivertrain Product

Freedom Warranty launched its newest VSC product. A Long Block Upgrade is now available with Lifetime Drivetrain coverage under Freedom Warranty’s 3/3 and 6/6 Vital™ Protection Plan.

The new product gives dealers the opportunity to offer their customers lifetime drivertrain protection and an additional 36,000 miles of coverage for the engine, starter, starter solenoid, alternator, and AC compressor.

“This product is price competitive with 12, 24, and 36-month drivetrain plus coverage and exceeds what other VSC companies offer by giving customers enhanced protection as long as they own the vehicle,” said Chris Miller, Freedom Warranty’s CEO.

Additionally, like the Vital™ 3/3 and 6/6, there are no surcharges for diesel, AWD, 4WD, superchargers, or turbos.

Dealers who want to know more about the Long Block Upgrade can contact Freedom Warranty Dealer Services by calling (844) 307-9944 or send email to contactus@freedomwarranty.com.

About Freedom Warranty

Freedom Warranty is a privately-held company that operates in over two dozen states and sells its VSC products through automotive dealerships, licensed repair facilities, and financial institutions. The company’s corporate office and customer service team is based in Chattanooga, Tennessee. Visit online at FreedomWarranty.com or call (423) 212-7445.

News from Freedom Warranty

Delivering Customer Satisfaction

Last year, Freedom Warranty made a commitment to its clients: To dramatically improve Customer Satisfaction. One year later, that promise is being kept with major improvements to Overall Customer Happiness.

A comprehensive plan that included educating and motivating department managers and agents has resulted in a composite satisfaction score of 4-stars on consumer review websites.

Specifically, Google Business Reviews added one-and-a half stars (from a low 2-stars) to the composite rating of 3.1 stars. The Better Business Bureau increased by 20-percent to a total 4.74 out of 5 possible.

"Our industry is tough when it comes to customer satisfaction," said Freedom Warranty's new CEO, Chris Miller. "Contracts can be complex and lead to lots of misunderstandings about coverage, but in the end when a customer files a claim they want to be confident that they will be treated with respect and a sense of urgency. That's where we can turn a negative into a positive."

Long Term Effects

Miller admits that it can take months, if not years, to reverse the damage of bad reviews and unhappy customers. "Our dealers and sales agents depend on us to deliver on their promises to customers. We take that very seriously."

Social media and online reviews can have a powerful impact on the marketplace. Putting an emphasis on resolving consumer complaints requires complex coordination between the dealer network, customer service agents and claims teams.

Team Leadership

"Everybody has to be onboard when it comes to improving service. From the dealer making coverages clear to the customer, to how our customer service agents help contract holders do business with us, to how we handle claims," said Miller.

The gains made over the last 12 months mean keeping a constant attention to keep the ratings level and for any improvement, and Miller understands it is a constant challenge to maintain and improve ratings.

"We are laser-focused on customer satisfaction as we continue on the journey to becoming a leading provider and administrator of vehicle service contracts in the industry," said Miller.

News from Freedom Warranty

FWIS 2.0 Adds New Customer Portal

FWIS Version 2.0 Release Debuts Major Upgrade and New Customer Portal

Freedom Warranty launched version 2.0 of its innovative proprietary, interactive cloud-based client application, the Freedom Warranty Integrated System, on March 26.

FWIS - Online Dealer Management Tool

The FWIS Dashboard is the most extensive and easy-to-use online dealer management tool in the Vehicle Service Contract industry.

Freedom Warranty vice-president and project executive, Chris Miller, said the latest version takes client and customer management to the next level.

"Version 2.0 is a major upgrade that we have been working on for several months. It is a robust set of tools engineered from the ground up to make it easier than ever to use—for our dealer clients and now, for customers, too."

Customer Portal Gives Contract Holder Easy Access

Giving access to contract holders with a simple-to-use online dashboard allows them to get details of their coverage, communicate with customer service representatives, monitor claims progress, and make financed contract payments using familiar gateways.

"Our primary goal was to respond to our dealers' needs in allowing buyers to get the information they need without using the dealership as a intermediary," said Chris Miller. Customers are assigned login credentials as part of the on-boarding process following a sale.

The cloud-based service is accessed through a standard Internet browser.

After a secure login, customers are able to view and edit profile information, communicate with the Freedom Warranty Customer Service Team, and monitor any active claims.

About Freedom Warranty

Freedom Warranty is the fastest-growing Vehicle Service Contract company in the nation, doing business in 19 states with independent and franchise dealers. Based in Chattanooga, TN the company has a 100-percent U.S.-based customer support team.

 

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