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Why Your Dealership Should Offer Vehicle Service Contracts
September 28, 2021 at 4:00 AM

Car dealerships looking to get an extra edge on their competition should consider offering vehicle service contracts. In addition to special financing options, offering assurance to your customers that protects them from unexpected or expensive repairs can seal the deal. 

Below we discuss the perks of offering vehicle service contracts at your local car dealership. 

Protection against specific problems. 

Potential buyers will always be more inclined to make a deal when there are more safety nets protecting their purchase. Buying a car is a big decision, and for most consumers there are plenty of moving factors to consider before you hand them the keys. Offering coverage that goes beyond the dealer or manufacturer warranty will give your buyer some extra leg room to make a decision. 

Service contracts cover major parts of the vehicle prone to frequent repairs. In most cases, a service contract will cover repairs for components like the engine, air conditioning, and transmission. Other areas of coverage include roadside repairs and reimbursement for a rental car in the event of a breakdown. 

Offer extended coverage. 

Ease the mind of a potential buyer by assuring them that their purchase will still be protected after the manufacturer warranty expires. Manufacturer warranties end after a specific period of time, or when the car hits a certain mileage. For most buyers, the warranties that come with the initial purchase are not enough. Give every customer the peace of mind to know that when their warranty ends, they don’t have to worry about driving around uncovered. 

Typically, a buyer will need to purchase a service contract right before the manufacturer warranty ends. 

Give buyers more. 

Car dealerships don’t just sell cars. They are selling reliability, assurance, and dependability. Cars have plenty of moving parts to consider, and are often at risk of breaking down suddenly. The average buyer wants to make a purchase knowing they are going to be secure both physically and financially. 

Besides offering top-of-the-line safety features, buyers want protections behind their investment. Remember that a car is the key component that drives someone’s career, family, hobbies, and so much more. Give every buyer that walks into your dealership the right coverage they need to walk out knowing the integrity of their purchase is safe. 

Options available for almost every budget. 

There are a variety of plans available to meet different needs and budgets. Vehicle service plans have multiple tiers designed to reach a wide range of customers and ensure they are able to get the best coverage possible. Some plans even cover basic wear-and-tear on their vehicle, or offer deductibles that start at $0.

Give your customers the freedom to choose their own repair shop. 

Most basic manufacturer warranties have a requirement that the buyer has to take their car to an authorized repair shop. Service contracts do not, giving your customers the freedom to determine who works on their vehicle at all times. Constraining a buyer to a particular repair shop can be far less appealing, and could prompt a customer to go somewhere else. 

Open new avenues for your auto dealership today! 

At Avenew, we understand the unique challenges and opportunities present in the auto dealership industry. We developed Avenew’s suite of programs to address the common problems dealership owners face on a daily basis, and provide viable solutions tailored to their individual needs. 

Avenew is on a mission to connect auto dealers with goal-oriented solutions for future success. Dealerships that work with us will gain a competitive edge in the market, while ensuring that their individual concerns are met in a timely fashion. Please contact us today to learn more!