Ways to Leverage PDR to Every New or Used Buyer

Chances are your F&I department has a fairly big menu of products that are presented to customers on every deal regardless of whether it’s finance, cash deal, or lease. In reality many of the products are typically smaller in margin and don’t require all the upfront ‘selling’ that VSC or GAP insurance does.

Small products do have their place, though. Paintless dent repair (PDR) is one of those products. Not a big money make for F&I but if offered the right way at the right time, it can add a nice little bit of profit every month.

So how can you position PDR for maximum penetration?

  1. Standard for Leases - Lease customers get so caught up in their small monthly payments that they often forget about the dangers of reconditioning fees at lease turn-in. Besides excess miles, cosmetic damage is the most costly to the lease customer and can result in a hefty amount due before officially walking away from the car. Offer PDR as a standard product early with this selling point in mind.
  2. Subprime Borrowers - Borrowed with challenged credit are already behind the eight-ball so to speak in both money down and interest rate. They know they are trying to rebuild or bolster bad credit...why not offer this low margin protection to help them with better trade-in value? Every little bit helps for this particular car to appraise better thus helping them with a better LTV on the next car that can go with standard rate financing. PDR helps them keep the car looking as good as possible.
  3. Preloaded - With such small margins, offer PDR as a preloaded protection on every car sold. It shows local buyers that you understand the value of helping buyers keep their cars in the best shape possible. It also helps to ensure that if a percentage of those new cars come back in trade in the next few years, there is a better chance they will look front-line ready with PDR protection being used.

PDR may not be the most exciting product on the menu but with 70-80% penetration numbers month after month, it adds up and can give the F&I department a nice boost in income. After all, every car needs it at some point...why not make it as easy as possible for every customer, new or used, to take advantage of it.

Click here to learn how truPDR can help bring some fast and easy extra revenue to the F&I department and make your customers rest easy knowing that it is easier than ever to keep their new cars looking showroom new.

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July 12, 2021

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