Dealership Development, LLC Blog

Consumers and marketers often mistakenly perceive Vehicle Service Contracts (VSC) negatively, believing that extended Vehicle Service Contracts increase revenue and profits while providing little advantage to the consumer. But recent research seems to dispute this perception, instead showing that consumers who obtain service contracts have increased loyalty to a brand and the retailer.

Vehicle service contracts or VSCs give car owners peace of mind. These contracts are valuable commodities that protect used vehicle owners against the inevitable cost of repairs that life and the road will throw their way. So what are the specific benefits of signing a VSC?

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.

Life is full of surprises and unfortunately, not all of those are pleasant. Having to suddenly come up with $1,000 or more for an unexpected bill definitely qualifies as unpleasant. While we all like to think that one-thousand dollars is semi-manageable, but the truth of the matter is that more Americans would have trouble coming up with that money on the spot, than you'd think.