5 Most Profitable Dealer Add Ons

Add ons. This tongue-in-cheek term refers to a host of options for today’s automotive customer, but the truth is that add ons are in fact mutually beneficial for the buyer and the dealer – not to mention profitable. Auto sales is a two-way street that should be a win for all those involved, and additional features – if relevant – will do just that. In order to clear the air surrounding this stigma and inform you of what is working in the industry, we at AutoRaptor have compiled a list of the 5 most profitable dealer add ons to kick off your sales push this year.

1. Extended Warranties

While hotly contested as to usefulness, the extended warranty is a hugely profitable add on. When making your pitch to potential customers, keep in mind that they have as much to gain or lose as you do. Extended warranties insure that the needs of a motorist can be met, and that they get the most out of their vehicle. They not only cover major mechanical issues or unforseen problems, but also preventative maintenance such as routine oil changes or tire rotations. Ensure that potential customers know the myriad of benefits they receive as a result of a service agreement. They walk away with the confidence that their automotive needs are covered, and the dealership walks away profitable.

2. Environmental Protection Packages

This add on offers protection for the vehicle inside and out. There is huge opportunity for these to be a source of profit for your dealership, as such packages usually guard against external weathering, corrosion, and premature aging of the vehicle interior – potentially making them expensive. The great selling point of environmental packages is that customers in every part of the country are exposed to the elements, whether that include extreme heat, salted, gravel roads, or debris. This means every auto dealer has the potential to gain from them.

3. Guaranteed Auto Protection (GAP) Insurance

Unlike the warranties mentioned above, GAP insurance is catastrophic coverage that is used in the event that a car is totalled or stolen. Many insurance providers offer the coverage, but it is convenient and even more cost effective for the buyer to get it through a dealership at the time of purchase. This can be a critical selling point for potential customers, as the depreciation of their vehicle would affect any other coverage resulting from major events like these.

4. Anti-Theft Systems

These are popular and seem to be standing the test of time, as individuals will usually pay more to protect a vehicle from break-ins and unwanted theft. One of the most helpful things about this add on is its practicality, because no matter whether a customer drives away with a Mustang or a Mercedes, they want their car to be safe. Like the others on this list, it is a win-win.

5. Tech Upgrades

An ever-growing area to capitalize on is that of technology. From features like Apple CarPlay to the latest in hands free mobile communication (think Sync in Ford models), customers are willing to pay for these luxuries. Technology add ons differ from the rest of the list in that they are obviously unnecessary – although they are nice. Dealers are at an advantage here, because people crave technology.

During your next sales pitch, keep these in mind, and clearly communicate to potential customers that add ons aren’t ALL bad. You both stand to profit from them. For additional AutoRaptor marketing tips, check out https://www.autoraptor.com/blog/5-email-marketing-tips-for-dealers.


Share with a friend
Ty W.
Ty W.

Ty was born and raised in the automotive world. He's an enthusiastic expert who writes exquisite content about cars, automotive sales, and dealership best practices. When not writing for AutoRaptor, you'll find Ty on the golf course.