Of course, car dealer warranty sales are profitable, but most of the car dealers do not invest enough time to be deemed successful. There is more to what meets the eye than keeping a drawer stuffed full of forms. It is crucial to invest some time in auditing your process as there is always some room for improvement.
Here are three of the worst used car dealer warranty mistakes and how to dodge them.
- Failing to be up to date with the changes around.
Warranty selections are dynamic in nature. New companies claim their competitive edge all the time and current companies are being on the edge by changing their options regularly. Sales rep also pay their customers a lot of attention. But it is not convenient all the time. Hence, research is your best friend for selling your add-ons successfully. Take a moment to comprehend the services offered, imminent profitability as well as their limitations. This further helps in presenting your proposals to your customers confidently. Moreover, keep in mind that it is not a one and done job. Ensure to review your proposals frequently if there is any change in the packages and the costs are also reasonable for both the parties. Car dealer warranty research is surely a savior and it would not take much of your time if you stay updated on it.
- Making it hard for your customers to choose.
So, you have done your homework and you have taken a decision on what to sell. Customers love options, but having too many of them might be too overwhelming, also it is not a good idea for your dealership too. The best way to approach your customers is by having a menu of services similar to your service department. Customers choose those dealers who are prepared well and it is beneficial for your sales team too. Ensure to list all the companies you work with and feature their products which you are choosing to offer. Also, include the warranty type and the client cost, but make sure it remains updated.
- Don’t be careless about compliance
Maintain a track of the requirements of each company. Ensure that you have all the existing forms and contact details in an Automotive CRM. When new forms make an appearance, get rid of the old ones to keep the confusion at bay. Monitor which types of contracts are sellable, which are not, which are most profitable. Ensure that you are filling the forms correctly. And last but not the least, stay updated on state and federal used car dealer warranty regulations. The FTC and NADA are useful resources.