Selling Strategies to Overcome Service Contract Myths

Selling Strategies to Overcome Service Contract Myths
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You’ve probably seen this scenario before. A shopper at your dealership is sitting down to finalize a vehicle purchase, but when the topic of a vehicle service contract is brought up, they cringe. Because of the myths and misinformation that are associated with them, service contracts have taken on a bad rap. Here are the three most common complaints and how you can overcome them:

The Complaint: Service contracts are nothing more than a dealer scam!

The Truth: It’s a sad reality that there were a few bad apples when it came to vehicle service contracts that spoiled it for everyone else and gave the entire industry a bad reputation. Even today, consumers still receive offers via junk mail about extended warranty opportunities that are stamped with phrases like “must act now” or “time is running out.” Nevertheless, those mailings don’t represent the bulk of the service contract industry.

To help consumers feel safe about their VSC, reaffirm to them that, when bought during the vehicle sales process, their investment in their vehicle in safe. Because today’s shoppers pride themselves on being informed through research (mostly via the Internet), keep them in the know by prominently displaying VSC information and letting them know your programs are in compliance with government regulations.

The Complaint: Service contracts are way too expensive

The Truth: Rarely does a buyer pay separately for a VSC. Rather, the cost is rolled into the financing of the vehicle purchase. To avoid any consumer mistrust, be open, honest and up front about the cost of the VSC. Because some shoppers will have a set budget that they can’t exceed, talk about the VSC cost early in the sales process so they can factor it into the purchase decision. If rolling the VSC costs into the purchase isn’t an option, consider setting up an installment plan to help ease the purchase.

The Complaint: Even if I buy a service contract, it’s a waste of money in the long run.

The Truth: The truth is, there’s a VSC for just about any budget, and it’s easy to customize one to fit specific customer needs. Present shoppers with the average costs of typical repairs to illustrate the VSC value. For customers concerned about vehicle depreciation, remind them of how a properly maintained vehicle will retain its value much better than one where service has been neglected.

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