Take Advantage Of The Win-Win Nature Of Extended Vehicle Warranties To Guarantee Your Dealership's Success

Posted on: 10 August 2016

Extended vehicle warranties are great when it comes to generating additional revenues to a dealership. However, this is not the only benefit that comes with selling these warranties. They also help to deepen the relationship between a dealership and a customer, something that then increases the chances of repeat business and new leads. The following are some of the reasons why you should sell extended vehicle warranties.

Makes keeping in touch with your customers easier

Once a person buys a vehicle from your dealership, they rarely have a reason to stay in touch. Trying to get in contact with them after a successful sale without seeming too "salesy" will also be harder. An extended vehicle warranty usually smooths this process since there is something that the client may need from you. When he or she encounters a vehicle problem, you are likely to get a call. This makes it easier to deepen the dealer-client relationship and helps to build trust. As a result, getting repeat business from the client will be easier. This will give your business a competitive edge.

Gives you an opportunity to demonstrate your expertise

Customers tend to gravitate towards dealerships with experts. The problem is that it is usually hard for a customer to differentiate between a practiced-in-the-mirror sales pitch and genuine expertise. This is mainly because of the limited time that customers and dealers spend together during the buying process.

With an extended vehicle warranty agreement, you will have more time to interact with your customers. This is because when a customer's transmission system fails or when his or her brakes start acting up, they will contact you. In such cases, you can help them find the best fixes for their problems. Demonstrating your expertise will later come in handy when the customer needs to buy parts or vehicle add-ons as he or she will be able to trust your recommendations.

Gives you an opportunity to demonstrate goodwill

Selling extended warranties also allows you to be a knight in shining armor. This is because taking care of a client's repair costs, smoothing out the repair process and protecting them from any automotive professionals that may want to take advantage of them will give them peace of mind. And since this is a situation where you are not trying to sell them anything, they will be more open to building a genuine relationship with you. It will therefore make it easier for them to recommend your business to their friends, something that will then lead to more business for your dealership.