“Act now! Your manufacturer’s warranty is about to expire.”

If you’ve ever purchased a new or pre-owned vehicle, you’ve received the relentless, automated calls and voicemails that try to sell you extended coverage for your vehicle. Unlike you, many consumers aren’t familiar with the often-illicit practice, and don’t always know to ignore the calls, emails, and direct mail.

Your customers are receiving these unsolicited offers daily from companies across the country. They don’t follow any code of conduct. And they have no shame using your dealership’s name, touting dramatically lower prices, and using scare tactics to prey on your customers. In fact, many of your customers believe the hard-sell is coming from your dealership.

So what does that mean for you?

While your dealership has nothing to do with these nefarious extended warranty providers, you may receive the bulk of the blame. Think about it. When a customer purchases a warranty from a random marketer, we’ve seen:

• Denied claims to misinformed customers who have to pay out-of-pocket for items they thought were covered
• Loss of service revenue because your customers are being directed to alternate repair facilities by warranty providers
• Damaged reputation because customers with bad claims experiences are unlikely to purchase again
• And much more

In order to combat these shady selling tactics and customer poaching, it’s important for your dealership to set up a program to ensure that when your customer is approaching the expiration of their contract, it’s you who they’re hearing from. By engaging with your customers when their coverage is about to expire, you’re capturing them at a critical decision point. Not to mention, you’re informing them about the difference between a credible service contract and a misleading one.

That’s why EasyCare created Your 7^th Profit Center, which we offer complimentary to our dealers. Through this program, we analyze your customer database and communicate the right message, at the right time, to the right customers. Our dealers who take advantage of this service see immediate revenue from:

• Service—many customers bring their vehicle in for service prior to their warranty expiring to make sure everything is OK
• F&I—some customers opt to purchase a new VSC to keep their vehicle protected
• Sales—some customers bring their current vehicle in to trade for a new or pre-owned vehicle

Whether you partner with EasyCare, or start your own program, the benefits are undeniable:

• Improved customer loyalty and CSI scores
• Greater service revenue and retention
• Increased vehicle sales, trade-ins, and vehicle service contract sales
• And the confidence that your customers are protected from illicit marketers and scams

As long as your customers own a phone and have a mailing address, they’re susceptible to scammers who may pose as representatives of your dealership. As a prudent GM, keeping your customers aware of these illicit tactics is vitally important to your dealership’s reputation and maintaining your customers for life. Consider how you’re communicating with your customers to educate them on these practices, and find some useful tips for effectiveness.