Continental Warranty, providers of highly competitive automotive service contracts and auto extended warranties, explains how dealers can generate increased profits and close more vehicle sales with a diversified line of service contracts.
Continental Warranty believes that there are three ways for dealers to realize more profit potential from service contracts:
1. Offer service contracts that are a better value and easier to sell by covering risk longer
2. Offer contracts that cover greater risk
3. Offer service contracts that are more affordable while still offering the same coverage
Continental Warranty Explains How to Find The Right Service Contract Providers
Today, vehicles generally have fewer problems over their first 100,000 miles than they did a few years ago. Dealers and consumers can both benefit from improved dependability of contracts that are competitively priced. Dealers may find that their current service contract provider is unable to comply with the above three suggestions. In that case, dealerships can retain their existing relationship with their service contract provider while adding another service contract option for customers.
Service contract providers that want to help dealers realize increased profit from service contracts are easy to identify. Continental Warranty offers three ways to ensure that a new service company is the right choice:
1. They welcome rate comparison
2. They continue to offer new products
3. They are established and still growing
Auto dealers who increase their product mix of service contracts can often realize an increase of $20,000 to $30,000 a month in additional back-end gross profit. Additionally, changes in training and product mix often improve profits from theft protection, Gap insurance, and other back-end products thousands of dollars per month.
Dealers can take advantage of Continental Warranty’s comprehensive line of back-end products. These dealers will increase back-end profits with more service contract penetration, and still maintain their OEM service contract penetration.
To learn more about their suite of products, call Continental Warranty at (302) 375-0401.