If you’re a used car dealer looking to really capitalize on the selling of your inventory, purchasing an extra 3rd party warranty is a smart move. Adding an extra warranty to your vehicle can increase its value and provide you with residual income down the road.
As a leading supplier of 3rd party extended car warranties, we here at Continental Warranty, Inc. would like to express to dealers just how lucrative investing in additional vehicle service contracts could be for your inventory. Without the addition of vehicle service contracts, you’re potentially missing out on a huge chunk of extra cash.
Right now, the industry standard for new car vehicle service contract penetration rate is at a measly 30%. That means 70% of customers and an overwhelming chunk of your profits are left without any sort of extended warranty, which as you know, results in your most profitable F&I resource.
Continental Warranty, Inc. Helps Dealers Bolster the Value of Their Stock
While nearly all-new cars come with a factory-issued extended car warranty, these warranties hardly last to the point when they are needed most by both the customer and the dealer. This creates what is essentially a lose-lose situation for both parties involved; fortunately, there is a simple solution to this conundrum: purchasing a 3rd party vehicle service contract.
That being said, we here at Continental Warranty, Inc. are thrilled to offer our customers a number of fantastic vehicle service contracts that are guaranteed to help improve your return on investment with each and every vehicle on your lot. From a general 10 year – 100,000 Mile Warranty to more specific coverage like the Key Replacement Program and Windshield Repair / Replacement Program will help bolster not only the value of your vehicle initially, but will ensure your customers come back time and time again for regular service.
If you’re still on the fence about whether or not purchasing extended car warranties for your inventory is a sound idea, we’d love to help you pick out some vehicle service contracts that will benefit both your dealership and your customers. For more information about the warranties we offer, please feel free to give us a call at 302-375-0401.