Today, vehicle service contracts remain in demand since about 40% of Americans do not have funds to spare for emergency car expenses.
However, even if there’s consistent demand for an auto service contract, it doesn’t mean it’s easy to sell. Even buyers who have an inkling to consider getting a service agreement may not go for it if your F&I manager ends up making the customer uncomfortable.
Most of these selling mistakes are common sense and easily avoidable. But sometimes, the pressure of hitting the monthly quota can cloud your judgment.
Common Mistakes to Avoid When Selling an Auto Service Contract
Sell your auto service contracts better by avoiding these mistakes commonly done by F&I managers.
Mistake #1: Pressuring Your Customer
If you feel like you’re pushing too hard, there’s a great chance you really are. When this happens, you should stop immediately. A customer who senses hard-selling will not buy the service contract you’re offering – no matter how hard you try. Worst case scenario is that it might even cause them to walk away and not buy the vehicle at all.
Instead, gently push your service agreement on customers who are not behind a wall. This way, the focus is not on securing a sale but on long-term benefits instead, such as a repeat customer.
Mistake #2: Being Too Defensive
Most customers are content with having a manufacturer’s warranty and believe they don’t need a service contract. Whether they think the service agreement you’re offering is a scam or they just don’t know better, maintain professional composure and never get into an argument.
Defending your service agreement will not earn you brownie points. Instead, you’ll be staining your dealership’s image.
Fortunately, the best approach is also the best way to maintain compliance. Explain in a very professional and friendly manner the added coverage beyond the manufacturer’s warranty. Focus on how the agreement will benefit the customer.
Mistake #3: Overwhelming with Words
Give your customer time to think and absorb the words you just said. For example, if you’re relaying the benefits and how they far outweigh the cost, hand them a calculator or a piece of paper so they can compute for themselves.
Letting customers find out the savings they will get on their own has a powerful, convincing effect. By not talking too much, you’re allowing the customer to relax and get comfortable, plus you won’t be drying your throat out.
Mistake #4: Separating the Agreement from the Vehicle
The best way to sell a service agreement is to introduce it right from the start. Doing so allows you to quickly check if the customer is sternly uninterested in the service contract. For a customer who is not pushing back, you’ll have enough time to warm them up before they finally decide to make a vehicle purchase. Waiting until the customer agrees to buy the car before introducing the agreement will make it look like an upsell and unnecessary cost.
Sell Your Auto Service Contract Better by Avoiding These Mistakes
Steer clear from these mistakes and sell your service agreement better. Not only will it increase your dealership’s revenue, but it will also promote a healthy brand image.
Do you want to boost your dealership to the next level? Contact us, and we’ll help set you up with the best vehicle financing.
