Do you want to sell more service contracts? Service contracts give the customer a real exit strategy when trading in their car. On today’s Tip of the Day, Adam Marburger of Ascent Dealer Services talks about focusing more on the exit strategy and less on tactics like payment manipulation and repair scare.
Adam Marburger: Hello, I’m Adam Marburger with Ascent Dealer Services. Here’s your tip of the day. Do you want to sell more service contracts? Do you want to sell more service contracts on the value buyer and the cash buyer? For years, finance managers have used payment manipulation and repairs care to sell service contracts. I’m here to change your thought process a little bit.
Think about the words exit strategy. We know the service contract is going to pay for repairs, we know it’s going to give the customer a car to drive, and we know that they’re never going to be inconvenienced, but I think that’s icing on the cake. See, what the service contract really does is that gives the customer options. It allows the customer to have a real exit strategy.
I know my customer that has a service contract, when they come back into my dealership to trade it in, I can take that car back into the service department, find something wrong with it, give them more for their trade, and they’re going to pay less in sales tax and interest. You can also combat depreciation. If you have a service contract, you have the option to keep the car one year longer.
See, the service contract unequivocally is the engine that pulls the train, but let’s think more along the lines of exit strategy. Less payment manipulation, less repairs care, and more exit strategy. The customer that has the service contract has options, the customer that does not have the service contract does not have options.
I’m Adam Marburger, here’s your tip of the day.