Consumers Are Using Their VSC and Other Products More Than You Think – Leverage the Stats, Increase Sales


F&I managers are immediately at a selling disadvantage compared to the other profit centers in the dealership. They have to sell the products and services that a customer may or may not ever need or use. It’s often an intangible sale. No immediate benefit, just ‘You may need this and here’s why it’s important to have it’ kind of sale. F&I managers have to paint the picture well to sell these products and reinforce their value to avoid chargebacks.

A recent survey by Protective Asset Protection (120 consumers and over 1500 dealers surveyed) has uncovered some surprising statistics that can help your F&I managers illustrate the need for these products and help increase PRU in the process.

Here are 6 revealing stats your F&I department should be using in their presentations:

  • VSC’s are saving an average of $1000-$2000 in repairs or parts replacement per policy.  This could already be part of the F&I sales presentation but using this statistic every time could underscore the value of the plans immediately. Costs are rising, and incomes are not for the average car buyer…use this to drive that point home. Do they have $2000 ready to spend for that transmission rebuild? Probably not.

  • 44% of VSC repairs were for technology systems. Cars and trucks are only adding more expensive (and temperamental) technology features to each model, not less. Paint the picture for your customer of what it would be like to have the navigation system stop while on their summer road trip. Watch the color drain out of their face. We love tech in our cars but the cost to fix or replace it…not so much.

  • 41% of VSC repairs were for electrical systems. See #2. Critical system, scary price tag.

  • 69% have already used their Tire & Wheel coverage. There is a reason why this is one of the highest margins products sold today. Almost all cars and trucks have alloy wheels that are expensive to repair or replace and the cost for tires is high for most vehicles. These statistics should be used to help close most customers on this important protection plan.

  • 47% have needed paintless dent removal. If your store offers this product, this statistic illustrates the usefulness of this coverage. Consumers are driving their cars longer and for more miles. Lease customers should be offered this or some other kind of ‘wear & tear’ package to protect them from reconditioning charges at turn-in.

Over 51% of customers bought a VSC and 53% have used them. Speaks for itself. VSC plans should be the easiest to sell even with the longer OEM coverages being offered. Powertrain coverages with some brands make cover you to 100K miles but that won’t cover your expensive technology or electrical repairs. The majority buy a plan, and the majority need them at some point. Use those numbers to your advantage.