Today, consumers are keeping their cars for longer periods of time than ever before, and because new vehicles are loaded with complex technology and electronics, an extended warranty may be appealing. Even the most generous of original warranties supplied by the car companies expire after 10 years or 100,000 miles of driving, while many last for just 3 years or 36,000 miles.
Pro: Consumers Can Tailor Extended Warranties to Fit Specific Needs
Because original warranties provided by auto manufacturers vary with regard to mileage and time limits, companies that provide extended warranties offer a greater variety of products and services than in the past. For example, if a vehicle is equipped with a lengthy powertrain warranty but a short bumper-to-bumper warranty, the third-party warranty provider can extend only the shorter warranty coverage. Another example would be the provision of 24-hour roadside assistance for new vehicles that don’t have that coverage from the auto manufacturer.
Pro: Extended Warranties Cover Costly Repairs and Pricey Technology
Modern vehicles are more complex than ever, filled with expensive technology, electrical wiring, and computerized equipment. When such systems fail, it can be expensive to diagnose, isolate, and repair the problem. Given that new cars, trucks and SUVs are more mechanically reliable than they’ve ever been, a vehicle’s technological systems represent one of the main reasons to purchase an extended warranty. If you elect to buy one, be sure it includes these technology features, as well as other significant vehicle systems, by requesting an exclusion list from the warranty provider and examining it carefully prior to purchase.
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.
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!
HOW DO I PURCHASE A VEHICLE SERVICE CONTRACT?
To purchase a Vehicle Service Contract plan please contact UBEEPUS, at 1855-868-7467. UBEEPUS provides and sells Vehicle Service Contracts on behalf of Prime Auto Care Services Inc., to consumers for new and used motor vehicles. The Vehicle Service Contract will commence and be effective after the manufacturer’s warranty has expired.