5 BENEFITS OF EXTENDED WARRANTIES TO THE AUTOMOTIVE CUSTOMER
Most car buyers are excited about the purchase of their new vehicle and may not be thinking about warranties. However, as the experts in the benefits of an extended warranty, it’s our goal to help the customer see the value in it. That’s why LGM works with leading brands and dealerships in Canada’s automotive industry: to provide unique F&I coverage in a way that builds loyalty and trust in the product and sales process.
A protection product like Mechanical Breakdown Protection (also known as MBP or an “extended warranty”) protects your customer from the unexpected cost of mechanical repairs. If you have a customer on the fence about purchasing a product like Mechanical Breakdown Protection, share this list of extended warranty benefits to demonstrate why they shouldn’t leave the lot without one!
- Cars are complex
We all know that the technology in today’s cars far surpass those built just 5 years ago. In fact, there are now more lines of code in a single vehicle than in the first rocket on the moon – a daunting fact for a new car buyer. While this is an exciting time for the auto industry, these technological advancements also come with added complexities and unfortunately, higher risk for breakdowns. With rising vehicle repair costs, it’s in your customer’s best interest to protect themselves – and their budget – against a potentially costly repair.
- Convenience and peace-of-mind
Experiencing a car breaking down is incredibly stressful and disruptive. With an extended warranty, you’ll be able to help customers when they most need it. A good extended warranty will provide your customer with towing services, money for a hotel, meals and even a rental vehicle to get them back on the road again.
- Budget protection
Breakdowns happen and the costs can add up. The new car buyer is protected for a limited time under their factory warranty, but as vehicle owners are now keeping their cars for longer than ever before, it’s likely they’ll run out of factory coverage in just two to three years. An extended warranty, and a product like Mechanical Breakdown Protection, ensures similar protection for the customer as it offers vehicle coverage the day after their factory warranty expires.
- Improved customer satisfaction
Through buying an extended warranty, customers can ensure they’re looked after during every step of their ownership experience. They can take comfort in knowing that they can bring their car back to the same place they purchased it, allowing them to take advantage of existing relationships – getting unmatched quality and service for their car, whether it’s a simple oil change or major repair. You and the customer both win!
- Greater car value
This is the hidden benefit of an extended warranty that many customers don’t consider – the policy becomes more valuable as the vehicle ages. A vehicle that was under warranty or had an extended warranty is more likely to be well maintained and in good working order. It is considered more trustworthy and of more value to the owner, and will command a higher trade-in value at the dealership if the customer decides they’re ready to move on.
Help your customers see the value in vehicle protection products
With extended warranties, everybody wins! The dealership can rest assured that their customer is covered by a great protection product and the customer gets the benefits listed above. If you want to learn more about finance and insurance products, LGM offers year-round, industry leading F&I automotive training and certification across Canada. Register for one of our upcoming courses today!