Powersports Extended Service Companies: Key Drivers That Make a Difference
A common misconception about dealerships is that their profits primarily come from vehicle sales, but this couldn't be farther from the truth. Parts and services, as well as aftermarket products contribute more to the bottom line than vehicle sales. Dealerships should therefore be picky about the powersports extended service companies they partner with because their choice can create a ripple effect that could be bad for business.
Providers of F&I aftermarket products like extended service contracts, scheduled maintenance programs, battery replacement, GAP and total loss protection contracts, and tire and wheel protection, among others, have specific offerings in terms of coverage, claims, and premiums. Understandably, you might find it difficult to choose a provider to partner with.
Vetting Powersports extended service companies
When vetting providers for F&I products for your dealership, consider the following:
1. Coverage- What parts are covered by the provider's extended service contract (ESC)? An ESC that's worth your money covers all factory-installed mechanical parts that were previously covered by the manufacturer's warranty. Anything less that this could be a waste of money.
2. Flexibility- Are their offerings immovable? Meaning, are the terms fixed and unchangeable for all your customers? If so, you'd best look for another provider because you want to be given a little bit of flexibility when it comes to customizing packages for each of your customers. This will improve your chances of closing the sale.
3. Claims process- Are the terms for claims clearly stated in the contract? You don't want your customer's claims to be rejected because of some technicality that was overlooked. Also, you want a provider that can process claims quickly, with a turnaround time of 24 hours at most, after work completion.
4. Premiums- One of the most crucial deciding factors customers consider before purchasing an extended service contract or other F&I products is the premium they have to pay. This is usually a one-time payment customers make, upon the discretion of the provider and/or the dealership. While several factors are considered to calculate the premium, it's best to check how the final cost was derived fairly for all parties concerned. You don't want a provider that demands higher-than-standard premiums because this means you have little room for your own small markup.
Learn why Torque Group is one the most trusted powersports extended service companies in the country today
Call Torque Group at (800) 859-0590 now to discuss extended service contract terms and other details.
