How to Sell Auto Warranties
Warranties are protection plans for automobiles. They can simply cover repairs to one particular car part or one system in the car, such as the transmission, or provide coverage for parts, labor for any defects and road side assistance. Warranties are vehicle service contracts by which the manufacturer or the seller promises to perform a repair function if needed within an allotted time frame. Lifetime warranties are not common in the auto industry.
- Difficulty:
- Moderately Challenging
Instructions
-
-
1
Review the warranty. Re-evaluate the coverage and extend it necessary to make it more appealing to buyers. Interview customers. Ask them what they expect from their warranties or what they would like to see covered in their warranties.
-
2
Be prepared for rejections based on prejudice about auto warranties. The Better Business Bureau reports, "Complaints to the BBB against companies selling extended auto warranties rose by 40 percent in 2008. In addition, more than 140,000 people contacted the BBB in 2008 to inquire about companies selling extended auto warranties."
-
3
Re-write the legal language in the warranty to make it easy to understand. Make it clear and to the point so that customers don't get the feeling that they are being deceived.
-
4
Familiarize yourself with the warranty as if you are preparing for an exam. In "Automotive Technology: A Systems Approach" Jack Erjavec writes, "A thorough understanding of warranty policies and procedures is also a must. Service advisors must be able to explain and verify the applicability of warranties, service contracts, service bulletins and campaign/recalls procedures." Customers will question you and expect you to have answers.
-
5
Make a list of benefits of having the warranty. Use your customer interviews to narrow that list down to the benefits that your target demographic cares about the most. Create a 15-second sales pitch to help transition from the car sales into the warranty offer. Keep it short.
-
6
During the sales pitch for the car, work the warranty in the conversation. Mention it without going into too much detail. Mention enough about the warranty to pique the car buyer's interests. When giving the price for the car, include the warranty as if the car can't be purchased without it.
-
7
Re-phrase the benefits of owning the auto warranty as much as possible. Give the customer examples such as reduced stress because he knows that he has coverage if something goes wrong.
-
8
Make a list of possible objections. After each objection, develop a list of possible rebuttals. In conversation with the car buyer, immediately respond to any objections.
-
9
Dive right into your transition statement right after you are certain the car deal is solid. Ask for the sale affirmatively as if every customer agrees to it. Say something to the effect of, "Would you like your warranty documents emailed to you as well. Speak of the warranty price in terms of dollar savings. Explain to the buyer the costs of auto repairs for defects if he didn't have the warranty.
-
10
Give at least three rebuttals. If the customer doesn't want the warranty, give him a short window of time to call you back if he changes his mind. Follow up with the customer within that time frame.
-
1
Related Searches
References
Resources
- Photo Credit One year warranty gold medal image by patrimonio designs from Fotolia.com
