Reasons to Buy Vehicle Service Contract for Your Used Car
Offering aftermarket service contracts mainly helps your Finance and Insurance office increase its profit. But, many dealership owners don’t realize that these protection plans benefit all aspects of the business. Discover how getting them from vehicle service contract companies and selling them to your customers puts you at an advantage.
Increases Your Cars’ Resale Value
Cars are like mobile phones. They quickly depreciate since newer, more efficient models are manufactured each year. This makes older ones outdated or obsolete. And, as they’re used every day, their parts get worn out, so their value naturally diminishes. Vehicles in these conditions are harder to sell for a good price.
Service contracts add value to a used car, and they’re one of its biggest selling points. By promising to provide or pay for repairs in case of mechanical failures, they reassure customers that a unit will continue to be in good running condition. So, you’re more likely to fetch a fair price for it. Pre-owned vehicles that come with these protection plans typically cost hundreds more than regular secondhand autos.
Generates Additional Revenue
Service contracts are an enticing offer to go with used cars. Selling them to even a small portion of your customers gives you thousands of dollars in extra revenue each month without investing much money.
Dealers don’t have to exert extra effort in selling these plans since most of them come from third-party providers. Your salespeople only have to do the marketing. And, when a customer accepts your offer, the vehicle service contract company takes care of writing agreements, determining the coverage, and settling claims.
It’s a good idea to partner with a service contract company if you have an in-house mechanic. Every time a customer brings their car to your shop to get it serviced, the contract administrators pay you.
Solidifies Your Brand Authority
A customer buying an extended vehicle service contract is required to come back to your shop for regular oil changes and tune-ups. They have to follow the recommended maintenance schedule to sustain their protection plan. This works to your advantage in several ways.
Keeping in touch with customers solidifies your brand authority in their consciousness. They’ll automatically remember your shop whenever they need auto services. This gives you the opportunity to show them that your company provides quality work.
Constantly interacting with customers also helps you learn about their needs so you can suggest useful products or services. And, when all goes well, they’ll trust you more and become loyal. They won’t only return to your shop frequently, but promote your company to other people as well.
Doubles Customer Satisfaction
If your client has a protection plan, they’ll never have to think about facing major repairs and maintenance issues. The service contract company will provide or pay for services in cases of faulty brakes, malfunctioning electronics, and mechanical failures. And, when the customer doesn’t experience any inconvenience with the initial transaction, they’re likely to purchase from you again.
Since you’re selling used cars, they aren’t covered by their initial guarantee anymore. They’re also more prone to breakdowns than recent models, so providing service contracts to your customers is a practical choice. Get in touch with Freedom Warranty LLC to add these protection plans to your product offerings. Let their vehicle service contract administrators help you with this business venture.