Why warranties? Here's why!

WHY WARRANTIES? HERE'S WHY!

- Willie Grubaugh

Every new car, WITH ZERO MILES ON IT, from the manufacturer comes with a corrosion warranty, a power train warranty, and a comprehensive warranty at a minimum. EVERY ONE! These contracts don't start after X amount of miles. They start with the initial in-service date, very first title transfer of the car, truck, or van, at zero miles on the odometer. These are new cars.

So why in the world would you try to sell a pre-owned car with any miles at all without a vehicle service contract? Now, factor the inventory you have to choose from as an independent dealer. Your inventory resources are shrinking, not growing. There are less wholesalers in the market place. The vehicles you do have to choose from cost more initially. The reconditioning is higher on today's vehicle; parts, parts availability, and labor... all three are issues modern day. We are not even to the fact there are so many more miles on the vehicles available. And let's not forget the cardinal rule of the car dealer, "No one goes to Hell for selling a bad car at auction". Now you can't sell a bad car to a consumer, but somehow, it is OK to take the under the metal clunker to auction & sell it to another dealer as long as you don't have to look them in the eye. I don't get it, but that is the unwritten rule of the business.

Industry related article after article state multiple advantages to selling pre-owned vehicles with vs. without a service contract. That does not mean give the farm away. It simply means offer it with every vehicle with the intent to sell it. Vehicles with a service contract have a higher net. Vehicles advertised with service contracts leave the dealership quicker. Consumers are researchers today; more then ever before.

Now, if you are really feeling froggy, want to sell more cars, and make more profit, defer to my article, or any article on selling Certified Pre-Owned vehicles.

Here are the reasons you as an independent dealer should be selling service contracts:

1. Peace of Mind
2. A used vehicle is useless in today's market without a warranty
3. Today's vehicles are too sophisticated to repair, or even diagnose what the problem is
4. Today's vehicles require special tools, equipment, & training
5. Coverage tailored to the consumer needs
6. Limits out of pocket expenses to the deductible
7. Today's vehicles offer little to no warning they are about to break down
8. My personal favorite... **TOLL-FREE 800 NUMBER FOR CLAIMS & ROADSIDE ASSISTANCE
9. Today's vehicles are much more expensive to repair
10. Protects from being ripped off by unethical repair centers
11. It is the most important option on a pre-owned vehicle
12. Repairs can be made as needed, not when the consumer can afford to
13. Component parts - parts are replaced today, not repaired
14. Service contracts protect against the rising cost of repairs
15. Pays for towing; prevents the family from being stranded
16. Budgets the repair cost over time of ownership
17. Increases the resale value
18. Keeps the dealership & customer friends
19. Generates referrals & repeat business over complaints & lost customers
20. No cash outlay - can often be included in the monthly payments

For more information on how service contract sales can protect your reputation, help you grow, and increase profits, visit our website or call our office at (800) 548-1121.

www.warrantys.com