Offering warranty services are a great way for a car dealership in generating a secondary form of income from car sales, especially used car transactions where customers might otherwise feel it is necessary.
The concept of the warranty is simple. It provides an insurance policy that helps cover all or part of the cost of a repair in a car if it is needed before the warranty period ends. Warranties are a proven way of generating trust in a vendor and a product sold, as the customer has a “guaranteed” means to seek a recovery if something does go wrong with the car purchased. As a result, the perceived risk on the buyer’s part seems to go away, making a purchase far more likely.
Car buyers clearly understand that warranty plans don’t come free. There is a cost, but the tradeoff for reducing a car repair cost risk seems to justify the expense. No surprise then, while people will haggle hard over a car price, there is often very little resistance to a warranty price. This is why it makes such a good secondary income for a dealership.
Drive Dealer Solutions can easily show dealerships how to make this proven tool work in their favor. As a leader in providing finance and insurance products, our goal is to help make your dealership more profitable through solutions that really work. We take pride in representing only the best in our industry.
To learn more about us or our Warranty Services, contact Drive Dealer Solutions at (425) 478-7242.