26 May It’s Time to Consider a Preload for Tire & Wheel…No, We’re Not Kidding.
A lot has been written about the value in preloading ancillaries in F&I. We bang that drum over and over because we have seen the value of this strategy for a long time. And it goes beyond just appearance packages…there is another service that makes it an easy preload and most have never thought about leveraging it on the front end of the purchase.
Tire & Wheel.
It falls in between the big ticket products like VSC and GAP but is more expensive than appearance ancillaries. It’s the weird middle child that doesn’t get much attention.
But your F&I department can change that by simply taking it out of F&I altogether so they can focus on VSC and GAP where the bigger money is made.
Why a Preload for Tire & Wheel?
We say, why not? Tire & Wheel is a very straightforward product without a lot of complicated selling involved. VSC’s have ranges of term, coverage, and deductible. GAP insurance has it’s own unique selling proposition and is closely aligned with the cost of the car and the amount financed to make the case for it.
Tire & Wheel is just that…it protects the two components of the car that can cost and arm and a leg to replace or repair. Tires cost more and more and alloys (especially the colored ones…yikes) are a HUGE cost to replace. Why not add this upfront?
Buyers know that nearly every car sold today has high-end alloys…even the cheaper cars under $20k have nice wheels. Nobody buys a car or truck with steel wheels anymore. And let’s face it…everyone could use this coverage at one time or another.
Given that, offering Tire & Wheel as a preload on Line 1 of the buyer’s order shows the customers you realize that expense can come unexpectedly and your dealership wants to help make sure that those costs don’t hit them while they are paying on the car.
Could they say no? Sure…but if the sales team is trained with the right talking tracks, your dealership should retain a high percentage of packages sold. If the package is priced well, it won’t impact the payment too much either taking away that objection of cost.