If you've just had your customer tell you he or she wants to purchase the vehicle he or she just test drove, the last thing on your mind may be whether to sell that new vehicle owner a dealer services extended warranty. While that may be understandable, there are many good reasons for offering that warranty.
Five reasons you should offer your customers an extended warranty
1. To solidify your relationship with your customer. An extended warranty can be a huge benefit for the consumer. He or she doesn't have to worry about having the money for a major repair. Most expensive repairs are covered in the warranty. Like insurance, this can give your customer the peace of mind that comes from knowing that their family is protected from the unexpected.
2. To bring them back to your dealership. Virtually all extended warranties require that the consumer keep up with recommended maintenance for the warranty to continue to be valid. That means the customer will be returning to your service department for regular oil changes and other maintenance needs, further solidifying your dealership's brand in their consciousness.
3. To add to your earning potential. Of course, extended warranties are not inexpensive and most carry an attractive commission for the sales person. In addition, the warranty is rarely, if ever, discounted. This can be a big boost for sales staff who work in a very competitive market, where price shopping is the norm.
4. To give you a reason to contact your customer again when the expiration is approaching. Selling your customer an extended warranty also gives you just one more reason to reach out to that customer. In three or five years, whenever the warranty is nearing its expiration date, you can call your customer to see if perhaps it's time to look at a new vehicle.
5. To increase customer satisfaction. If your customer faces a major repair without an extended warranty, he or she may be put off from purchasing your brand or vehicle in the future. With a warranty, they'll face less financial pain and will be more likely to buy again.
While purchasing an extended warranty may not be the right choice for every customer who buys a new car, offering such a warranty can help you build a strong relationship with your customer, help enhance your income, bring your customer back to your dealership on a regular basis an give you a good reason to contact them in the future.
Share7 July 2016
Hello, my name is Veronica. Welcome to my site. I am excited to talk to you about DIY and professional auto repairs. Most of the maintenance tasks on your vehicle can be completed in your own driveway. You just need to right tools and repair manuals to complete the job at hand. Of course, there are plenty of tasks best left to the professionals. As you learn to do your own maintenance, you will start to easily tell the difference between professional and DIY worthy tasks. I will use this site to provide all of the information you need to know about this process. Thanks for visiting.