Tips from a reinsurance consulting team: benefits of a dealer-owned warranty company
When you’re considering ways that your car dealership can continue to grow by maximizing profits, a dealer-owned warranty company should be near the top of your list. There are many ways that your dealership can benefit beyond simply providing stellar customer service. At Avenew, we offer reinsurance consulting to help you provide a quality product to your customers while protecting yourself financially. Read more about the benefits of a dealer-owned warranty company to learn more about why it’s a great idea for you.
Custom coverage options
When you’re selling new cars, you’re incredibly limited in the warranties that are offered. The manufacturers have their set warranties and guarantees and you’re not able to change those to anything else that will benefit the customer. However, you can sell an additional warranty on top of the manufacturer warranty as a way of saying thank you to your customers.
Your dealership warranty can be flexible and fitting to what you believe will appeal to your customers. Often these programs will include some free oil changes, maintenance inspections, and other basic services that won’t cost your service department a lot of money but will help the vehicle owner take care of their purchase.
The same holds true with used cars as well. You can show confidence in the used vehicles that you’re selling by supporting them with your own warranty program. Similarly, you can include free oil changes as well as roadside assistance and a powertrain service contract. By offering a service contract with your used cars, you’re providing customers with added peace of mind.
Improved customer service
When you’re selling vehicles, customer service is the main selling point for the majority of customers. They can buy a new truck with the same features at the dealership in the next town over, but you’re going to close the deal because you have stellar customer service. Part of that customer service comes with your dealership warranty. If you can offer a better warranty than your competitors, your customers are more likely to hang around and listen to what your sales team has to say. A dealership warranty program shows your customers that you care about them for miles down the road beyond what the manufacturer has promised. Build trust with your customers in their first purchase and they’ll come back the next time they need a new vehicle.
No losses from other dealers
When you sell a new vehicle to one of your customers, they leave with a manufacturer warranty that covers them at any dealership. This is money that you lose out on as they get service from one of your competitors. By offering a dealership warranty, they’re more likely to come back to you for all their warranty work. Keep in mind that you get paid by the manufacturer for any work that’s performed under its original warranty. The more you can encourage your customers to come back and see you for auto service, the more money that will bring in for your organization.
Schedule a call
If you’re ready to meet with our reinsurance consulting team, get in touch with us today. Our team at Avenew will help you schedule a call with our experts so you can learn more about how reinsurance and warranty companies work. Send an email at email@example.com or use our online contact form. You can also speak with a member of our staff directly by calling 616-259-6050. We look forward to hearing from you and helping you grow your car dealership.