Auto service contracts have become a popular way to provide consumers ways to manage unexpected repairs. As the F&I manager, it’s your job to show your customers how this will protect their vehicles.

However, there are some common mistakes that auto dealers make when presenting their customers with their auto service contract options.

Avoid These Common Auto Service Contract Mistakes

The National Automobile Dealers Association (NADA) reports auto service contracts purchases for new vehicles are down slightly, the reason being that customers didn’t see the value. Not outlining the value of a service contract is only one slip-up auto dealers make.

Here are a few other common mistakes and how to avoid them.

1. Selling Your Customer Services They Don’t Need

The Federal Trade Commission (FTC) encourages consumers to educate themselves before adding an auto service contract to their vehicle purchase. If you try to sell a customer something they don’t need, you could cost your dealership the deal. You wouldn’t want to lose a customer because they thought you were trying to scam them by “tacking on” an additional—and in their eyes, unnecessary—cost.

2. Using Misleading or Confusing Terminology

When you talk to your customer make sure you use clear and concise language. Avoid confusing industry terms. You won’t impress the customer with your vocabulary, so keep it simple.

3. Skimming Over the Details

The Better Business Bureau urges consumers to understand the terms before purchasing an auto service contract. Helping your customer understand each product and service you offer will give them the confidence to trust you.

Some Lesser-Known Facts About Auto Service Contracts

Did you know that you can get an auto service contract regardless of your credit? Do your customers know?

Even with all the information available, there are still facts that consumers are unaware of when it comes to what they can and cannot get covered on their vehicle. You must know these lesser-known facts about auto service contracts so that you can get your customers exactly what they need.

Here are some of the lesser-known auto service contracts options:

  • 100,000-mile add-on service contracts no matter the age or starting mileage
  • No vehicle age restriction on any model year or mileage programs
  • Salvage/branded title vehicle coverages are available

The ACE Group Will Help You Avoid These Common Mistakes

The most common mistake dealers make is not offering an F&I solution that meets all of their customers’ needs. Your dealership must provide an extensive and flexible set of vehicle service contracts that rival the basic factory warranty. Our vehicle service contracts are customized to fit their needs and budgets.

Here at The ACE Group, we know the common mistakes dealers make and how to avoid them. Contact us today to see how our auto service contracts will meet the diverse needs of your customers.