It’s no secret that Extended Warranty is a massive part of the Used Car Sales Process. That said, so many dealerships continue to struggle when it comes to selling extended warranties to customers.
EasyCars has put together 5 Ways Your Dealership Can Get More Extended Warranty Sales in 2023.
Let’s get into it!
1. Explain Your Warranty Options
One of the main reasons why so many customers don’t take up extended warranty offers with dealerships is because they either don’t know your dealership’s warranty options or they don’t understand the options you offer. Generally, it’s either one of the two.
To increase your dealership’s extended warranty opportunities, it is important that you know and explain your extended warranty options to customers. It is important that you convey to all prospects throughout the buying process what your extended warranty options are and how they can go about purchasing it with their vehicle. Explaining your warranty options is a simple, yet effective way to convince more customers to take up an extended warranty with your dealership.
2. Be Clear On the Product
A common frustration for so many car buyers when it comes to extended warranty is products often differ from one dealership to the next. To convince a buyer to take up your dealership’s extended warranty you need to be clear and upfront on what your warranty covers and what it doesn’t.
The only way that you are going to be able to get a customer to take action is by having them understand everything about the warranty. The last thing that your dealership wants is for the customer to purchase the wrong warranty option or have them not understand the warranty and having something go wrong. If the arisen issue is not covered by the policy selected it will create a blame game which could result in you being could be liable!
3. Hear the Customers Concerns
When it comes to buying anything, customers will have a thousand different questions. The worst thing that your dealership can do is turn them away or not answer those questions promptly. To increase your dealership’s chances of closing more warranty sales it is important that you listen to and address any customer questions or concerns.
Hear their questions, answer them if you can, if you can’t let them know you will follow up with them in a few days after you check with your warranty provider. To get a customer to purchase your warranty you need to make them understand everything about the policy so that they can make an informed decision that best meets their unique requirements.
4. Cover the Benefits and Disadvantages
All warranties will have their benefits and disadvantages. Another mistake that so many dealerships make when it comes to selling warranty is not disclosing both the advantages and disadvantages of each of the different warranties that they offer.
The problem with not outlining the benefits and disadvantages is customers may think you are hiding something. To build customer trust, you need to tell them everything good about the warranty option and what the option may not cover. By communicating openly and honestly you will show the customer you have nothing to hide and are looking out for their best interests.
Related Article: 5 Ways Car Dealers Can Build Trust with Customers.
5. Be Flexible
Let’s face it, selling warranty is no easy task. That said, the only way that your dealership will be able to sell more warranty packages is to be flexible with the customer. No customer is the same. What one customer wants will differ greatly from the next, as such your dealership needs to cater for such.
To close more warranty deals it is important that your dealership has and offers flexible warranty options for all types of motorists. Having an expanded warranty offer will allow your dealership to cater for more motorists and will give you the ability to offer designated solutions to suit each customer’s unique needs.
Selling extended warranties has always been a struggle for so many Motor Dealerships. But it doesn’t have to be that way. The 5 strategies presented are a few good ways that your dealership can sell more warranty packages in 2023.
We hope you enjoyed reading this article. To read more articles like this, please visit the EasyCars latest news page here.
EasyCars by Jeal is an Australian, web-based, dealer management system that automates the buying and selling of motor vehicles. Using the latest technologies, EasyCars removes frustrations experienced at the dealership and opens your doors for greater growth.
EasyCars features include Simple Stock Management, Automated Advertising, Integrated Accounting, Government Compliance, Business Reporting, Facebook Automotive Inventory Ads, Reviews Management, Dealership Websites and more.