21 Aug Three Good Reasons to Offer a Longer Standard Powertrain Warranty
Many franchise and independent dealerships offer some form of basic powertrain coverage for their used cars and though the industry average is about 3 months/3k miles, it could be better. With used car sales slowly hitting its pre-COVID strides, now may be the time to offer a more robust basic warranty. Here’s why…
VSC coverage is valuable to every used car shopper. Buyers want the peace of mind that comes with knowing that if the transmission fails they lose 1st, 2nd, and reverse on the highway coming home from vacation, that it will be fixed quickly. But 3 months may not be enough time to give that peace of mind.
Here are some compelling reasons why your store should consider offering a longer basic powertrain warranty…
- Higher CSI – If customers feel like they get coverage that gives them more drivetime to guard against any major issues, they will thank you for it in the form of higher CSI ratings and better reviews on social media.
- Take it Out Further – 12 month/12k miles is a stronger value proposition for the purchase and will give most buyers close to a full year of protection depending on their driving habits. 3 months is simply not long enough and if your administrator offers a low-cost 12 month coverage, it can make sense on every unit.
- You Will Sell More Cars – And isn’t that always the goal? Sell more. If a buyer is choosing a car between your lot and the lot down the street that only offers a 3 month warranty and you offer 12, who do you think he will come to first? Wouldn’t we all? Yep.
It’s also important to brand this extra protection to our dealership by making it clear to every car shopper in your local market that you understand longer protection is better. Make it the key differentiator against your competition.
Will it cost a few bucks more per unit than a base 3-month offering? Sure but with a well-priced coverage from a reputable provider, the extra sales make up that difference and even tee up a quick upsell for F&I.
TruWarranty has a 12 month/12k mile powertrain coverage available to offer every customer and can easily be private-labeled. Click here to get all the deets on TruPowertrain, a low-cost protection that will yield high ROI.