Have you ever looked up vehicle service contracts in a search engine? The top articles and posts you will find are filled with words like, scam or skip, and most of your customers are reading these articles before they even walk in your door.

This puts your dealership at an immediate disadvantage at the negotiating table, which is why understanding how to properly position your vehicle service agreements to car buyers is so important.Rule 1: Address the information

Address the issue head on, explain to your customer that you have seen these types of articles and that you know they have been told not to get an extended warranty. This immediately disarms the power of all of those words your customers read.

If you have actually read these articles you will be able to explain why they are wrong. In doing this, you have just moved from hugely disadvantaged to regaining control of the conversation.

Of course, you need to make sure your team is educated on the arguments against service agreements and able to craft rebuttls against them ahead of time.

Rule 2: Engage your buyers

Start asking your customers questions through out the sales process. Ask them "how long do you think your car will hold up before it needs repairs?", "how much do you think the average repair costs are for this vehicle?" or "how long are you planning on keeping this car?"

By asking them well thought out questions that frame the conversation with "when" your car needs repairs down the line versus "if" your car will need repairs down the line, the benefits of the vehicle service agreement will now jump out to the customer instead of being buried under a mountain of doubt and negative beliefs.

Rule 3: Use statistics to your advantage

People are keeping their cars longer and longer these days. Whether it's due to bad economy, better quality engineering or other circumstances, the facts are clear. In a survey by AutoMD.com 78% of drivers said they planned on keeping their car for 10 years or more after purchase. In that same survey 54% or respondents say that they plan on replacing a car only when they have to or when their current car is completely dead.

To the average driver their car is a tool and they have a utilitarian view of their vehicle rather than a luxury item or a comfort item.

Focus on the fact that if you NEED your car and if it is an important tool, then you should be taking care of that tool for as long as possible in order to be worth the initial investment.

You can also focus on the fact that the drivers that don't get extended warranties are lining the pockets of auto repairmen. In a 2015 industry report from IBISWorld, the auto repair industry's profits hit $56 billion, that's up from $35 Billion in 2010.

The point here is to emphasize to your customers that they are going to be paying for car repairs eventually. They can either plan for the future and be covered with reliable service that they can depend on now or be in a position where they need their car fixed and are at the mercy of a mechanic down the road.

Dealership Development, Inc. offers a wide variety of vehicle service coverage levels and options to fit your customer's needs. Plus, we're an auto warranty company that is fully insured by "A" rated insurance carriers and we are approved by all lenders.

We can help your dealership raise profits and keep customers happy. Feel free to contact us at any time.