Higher Car Prices & Payments Doesn’t Have to Mean Lower VSC Sales

It seems like everything in the automotive industry is getting more expensive these days. The average price of a new car has crested $36K. The average payment is over $500 per month for the first time in history. And political moves in trade have caused wholesale parts costs to rise making repairs more costly.Sounds like a lot of bad news, huh? Not so for F&I.

But how can an F&I department sell VSC’s now with customers feeling the pain in price and payments?

Here are a few quick tips to help sell more VSC plans even with buyers spending more than ever for their cars…

• Fair Price - Your job is to hold as much on every plan as possible but with payments rising, pushback is more likely. Dial it back enough that, with volume, you still make a healthy PVR without having to get hit with a firm ‘No’ on price. Better to cut margins than lose the sale altogether.
• Targeted Questions - Asking the right questions will help the buyer practically talk themselves into the VSC. Driving habits, projected miles in a year, financial resources available to handle unexpected repairs, etc.
• Education - Making sure your customers fully understand why a VSC is so critical now with cars being more expensive AND more technologically dependent is the key to them seeing the value before they drive off the lot. Offer explainer videos on your F&I web page to allow for research before they come in.
• Make It Real - some of the most successful F&I managers have actual RO’s in their office to show the real cost of repairs. Others will have a defective part to show customers with a story to go along with it. Make it tangible...make the buyer SEE the failed part and when they hear how much it is to replace it, the close becomes easier.

VSC’s are the bread-and-butter of every F&I menu. With buyers spending more now, they will immediately counter on this without the right approach.

Click here to see how truWarranty can set up your F&I team with industry-leading VSC plans, marketing, and claims administration.