Online VSC Companies - How to Beat Them at Their Own Game

New players are coming into the VSC space in higher numbers. Before the local dealership only had to worry about one or two online or independent companies or maybe the local credit union as a benefit to members. But things are changing in the online world of VSC’s.

Car buyers may want a VSC but they don’t necessarily want to get the big F&I pitch to buy one. Enter the ‘Carvana’s’ of the online VSC world...some offering monthly subscription models to get the car covered for mechanical breakdown. As long as you pay the monthly fee, you have your coverage.

Some are simply offering a more cut rate pricing model with the promise of better coverage and/or the ‘best’ claims experience. So, how does a dealership in today’s crowded online aftermarket space fend off the competition? Simple….the consultative, in-person approach.

When a buyer comes into the F&I office, they already have their guard up and are convinced nothing you have is necessary. But that’s where it’s more important than ever to be the educator first, salesperson last.

Online VSC sellers may have chatbots or a tele sales team to handle inbound inquiries but at their core, they don’t have the consultative sales ability to get the buyer to understand all the nuances to choosing a VSC. Term, coverage levels, claims experience...it’s more complicated than a cool looking website and slick stock photos of people that aren’t actual employees.

If your customers mention going ‘online’ to buy a VSC, gently let them know that your F&I staff is trained to breakdown everything they need to know and that your provider has likely been in the business for decades rather than coming late to the party as some fly-by-night startup that will disappear once their VC money dries up. Always position your F&I staff and your product offerings in the most favorable light right from the beginning. Make sure the staff is a presence on the website and offer quick tutorials for car shoppers to know more about your products. Consider a digital F&I presence for more transparency. Offer a better experience in person or online and the buyers will be less likely to buy an ‘off the shelf’ VSC.

Click here to learn more about how truWarranty can support your dealership’s efforts to combat the newcomers to the VSC space through best-in-class training, private labeling, marketing, and a claims experience second-to-none.