Move cars off the lot faster than you can drive them
Taking advantage of every chance to upsell is crucial, but it’s not always easy to find the best car warranty companies to offer to your customers.
A lot of pressure to find the best car warranty companies falls on the business manager, so it’s essential to make time to keep this part of your routine in perfect running order. The potential to make a lot of profit is there if you just go about it the right way, not only for sales but also for your service and parts department. This one transaction could lead to a lot more business in the future.
Offer your customers a little extra
If you are part of a franchise, you’re probably already involved in certified pre-owned coverage, but sometimes clients are looking for a little more. Are you offering other extended coverage packages? You should always give clients extra options such as paint and interior protection, tire and wheel, and GAP coverage on top of the traditional extended service protection plans. It’s smart to review your options yearly to make sure you are offering the right packages and that you’re working with the best car warranty companies.
One simple way to do that is to meet with extended service provider (ESP) representatives who are begging for a little face time. Despite that fact that they are hoping to sell you something, a lot of them are full of information to help you make the right decision. Set up an appointment and make time to talk to them. See what they have to offer, but always be wary of smaller, third-party companies. Make sure they’re an established company that won’t take off with your customer’s money. If your customer has problems with the ESP provider, it will ultimately reflect on your dealership, adding to the risks of adverse reviews you’ll be left to handle. The Better Business Bureau has lots of reviews, and the FTC has information on known scams and other complaints.
Find out what your colleagues think are the best car warranty companies
You have it narrowed down to a particular ESP provider, and now is the time to check out reviews, potential scams, and any complaints from customers or dealers alike. Scour the web ask friends in the industry who they use and what they think. Nothing beats first-hand experience, and a colleague’s knowledge could help save you the frustration of finding out the company is terrible after it’s already too late.
Some vital information to ask would be:
Is there a representative always available or do you have to spend countless minutes on hold waiting to talk to someone? The best car warranty companies have excellent customer service practices and won’t waste your time.
Even better warranty companies will process payments right away via phone or fax. Ask if their claims processes are smooth and how their payment process works. Can you get paid the same day or do you have to wait for a check to come in the mail? If you’re on a tight budget, you can’t afford to stick with a company that keeps your money tied up.
Are there any hidden costs such as forms or fees above the basic contract cost to the dealer? Are there other bonuses or ways to increase the profitability of the contracts sold?
Ask about contract processing. Do you have to mail the contracts in to activate them, do you process them online or do you have to wait for your rep to stop by and pick up a stack of contracts? It sounds ridiculous, but a lot of dealerships still have to wait for the contracts to get picked up. That’s a real problem if the customer has to come back in for warranty work and the contract isn’t even activated yet. Sadly, it’s a reality and one you should be aware of before you start working with any ESP.
Customers are willing to pay a little more for peace of mind, and it’s up to you, the business manager, to present them with the best car warranty companies possible.
With used car sales topping new auto sales in 2017, it’s safe to say that there is a vast market out there for extended service plans. Take advantage of your CRM tools and examine your customer base to see what programs might appeal to them. Work with a few different ESPs. One option is probably not enough and doesn’t give your clients much choice, but more than three could be too overwhelming. Choose two to three reputable companies based on thoughtful research, and you have the potential to increase the success of your dealership.
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