19 Mar VSC & PPM…The Perfect Combination
Bundling F&I products has been extensively written about around here and this post is no exception. Yes, bundling has MANY benefits, both to the dealership bottom line and all the ways it offers the customer a more streamlined experience in F&I. Bundling is great but has your store ever thought about having VSC be part of that package?
Probably not. But here is one combination that could be a game-changer for your store and benefits two departments at once.
Vehicle Service Contracts + PPM
WHAT!?! This is crazy talk…you can’t sell them together! Blasphemy!
Well, not really. VSC and PPM are actually positioned to complement each other. These two products give the customer added peace of mind and a lot less worry. You are providing them an easy way to make sure their car is maintained and repaired quickly and efficiently without the worry of out-of-pocket costs. We all know those tend to come at the worst possible time.
VSC and PPM are almost always offered in separate consultative sales talking tracks, one being a high-margin product that is the shining of the F&I menu and the other is more of an afterthought as part of ancillaries.
PPM never gets as much love as it should. But no, it’s not crazy to offer them together.
Tips on How to Offer a VSC/PPM Package Deal (Hint- It’s Easier Than You Think)
- Market It Well – Be sure to work with an administrator that allows private labeling of this bundle. Make it ‘sticky’ to your local customers that your store offers the ‘total vehicle care’ bundle. Slap your name on it and make it part of the ‘Why Buy Here’ value proposition.
- Price It Fairly – We all know VSC’s are the highest price product offered in F&I but with PPM as an add-on, you can still hold a nice profit because it’s so easy to sell a customer on that level of protection. Their new car is covered from top to bottom, oil changes to major repairs. No worries for them and a fair price from your store so it doesn’t scare them away if added to the payment.
- Don’t Forget the Service Walkthrough – Having trouble closing a buyer on your VSC/PPM combo? Walk them to the Service Department and have your talking tracks ready with the rising cost of parts and labor, etc. Bonus for having one of your advisors there to reinforce those real-world numbers and your buyer should have no problem adding your total vehicle protection to their payment.
- Tie the Two Together in Their Mind- Paint the picture in the buyer’s mind that keeping up with their OEM recommended scheduled maintenance is a critical part of ensuring both the factory warranty and the VSC will never be in jeopardy.
Both OEM and aftermarket administrators are starting to pay close attention to whether or not owners are maintaining their cars before paying out on a large breakdown claim. It will be easier to sell if your buyers understand that relationship between regular oil changes and the transmission replacement down the road.
To help your store provide this VSC/PPM bundle, click here to reach out to TruWarranty where we can walk you through the most comprehensive total vehicle care package you can offer your buyers.
VSC that covers an industry-leading amount of components and a PPM that goes deep into everyday maintenance like oil changes, tire rotations, battery replacement allowance, brake pads, and more. TruVSC+ is the surefire moneymaker for your F&I department and a big win for the Service Department, too.