We all know that the VSC as Johnny Garlich would call it, “is the engine that pulls the train.” If you learn how to effectively sell the vehicle service contract, you will sell additional products. The service contract also impacts your PVR the greatest. One quick way to raise PVR is to raise the price of the service contract.
In 1999, we were selling service contracts for $2000 so it’s easy to justify a much higher cost today. Today’s customers are demanding and have information at their fingertips. They also are very impatient and loath a sales pitch in the F&I office. How can we maximize gross profit while ensuring the highest levels of customer service?
Here are a few things to consider:
- Almost ALL service contracts have exclusionary coverage available
- Customers WILL pay more to NOT be inconvenienced
- It allows the customer to negotiate with an advantage when trading in or selling outright
- MASSIVE peace of mind
- Gives the customer an exit strategy
- Allows the customer to possibly keep their car one year longer, which saves the customer thousands of dollars
- Very easy to use across the country
- Claims are paid faster than ever before
- Customer satisfaction has increased as service contracts have evolved
- We have long-term coverage available
- VSC is the only thing that can combat depreciation
- VSC can allow you to pay cash for your next vehicle or put a large down payment
- VSC allows you to not make a rash decision if you incur a problematic car
- The VSC keeps you from potentially being taken advantage in a service department
The successful F&I professional must put together a personally tailored menu presentation and deliver in a sincere transparent manner. Personally, tailoring the menu based on your previous conversations and defining their personality type, a much higher penetration on additional products is achieved.
This is not rocket science and we do not have to rediscover Einstein’s Theory of Relativity. We simply get involved in the deal early. We discover the personality types of our customers. We structure a package that maximizes gross profit and gives the customer options that will benefit them for years to come. The customer that buys the service contract is a loyal customer and returns to your dealership for their next vehicle. Guess what? They will purchase another service contract too.
My Challenge to All of Us
S-L-O-W down and connect with our clients. The impression we make on them will last. The impression we make will determine a lot of things.
We only have one moment to make that impression – MAKE IT A GREAT ONE.