Today, vehicle service contracts remain in demand for about 40% of Americans I have no funds to spare for car emergency expenses.
However, even if there is constant demand for an automotive service contract, it doesn’t mean it’s easy to sell. Even buyers who have the inkling of considering getting a service contract may not accept 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 to hit the monthly quota can cloud your judgment.
Common mistakes to avoid when selling a car service contract
Sell your auto service contracts better by avoiding these mistakes commonly made by F&I managers.
Mistake n. 1: put pressure on the customer
If you feel like you’re pushing too hard, there’s a big chance you really are. When this happens, you should stop immediately. A customer feeling a hard sell won’t buy the SLA you’re offering, no matter how hard they try. The worst case scenario is that it could even cause them to walk away and not buy the vehicle at all.
Instead, gently push your SLA on customers who aren’t behind a wall. In this way, the focus is not on secure a sale but instead about the long-term benefits, like a regular customer.
Mistake n. 2: being too defensive
Most customers are content with having a manufacturer’s warranty and believe they don’t need a service contract. If they think the SLA you offer is a scam or just don’t know better, keep your calm professional and never fight.
Defending your SLA won’t earn you brownie points. Instead, you will tarnish your dealership’s image.
Fortunately, the best approach is also the best way to stay compliant. It explains in a very professional and friendly way the additional coverage beyond the manufacturer’s warranty. Focus on how the deal will benefit the customer.
Mistake n. 3: overwhelming with words
Give your client time to think and absorb the words you just said. For example, if you’re conveying the benefits and how they far outweigh the cost, hand them a calculator or piece of paper so they can calculate for themselves.
Letting customers discover the savings they will make on their own has a powerful and compelling effect. By not talking too much, you allow the client to relax and get comfortable, plus you won’t dry your throat.
Mistake n. 4: separate the agreement from the vehicle
The best way to sell a SLA is to introduce it right from the start. This makes it possible to quickly check whether the customer is severely disinterested in the service contract. For a customer who doesn’t hold back, you will have enough time to warm it up before they finally decide to buy a vehicle. Waiting until the customer agrees to buy the car before introducing the deal will make it seem like an upsell and unnecessary cost.
Sell your auto service contract better by avoiding these mistakes
Stay away from these mistakes and better sell your SLA. Not only will it increase your dealership’s revenue, it will also promote a healthy brand image.
Do you want to take your dealership to the next level? Contact us and we will help you set up the best vehicle financing.
This article was published by: Trent Welch by title: Avoid these common auto service contract mistakes.
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