If you are the owner of a car dealership, you have a lot of different options to give customers value and help yourself make some money. One way to do this is to offer extended warranties. An extended warranty is the option for your customer to pay you upfront for services that they might need in the future. This is very helpful for many customers because it gives them the peace of mind that they need to know that any problems that they might have with their vehicle are going to be affordable to fix. However, you might wonder how you benefit from offering extended warranties. Here are some reasons why you should consider offering them.
1. Brings Repeat Business
The main reason why you want to be sure that you offer extended warranties is because it will cause customers to continue using your services. This is exceedingly important because it will help build your customer base, increase the chances that your customers give you word-of-mouth advertising, and allow you to provide better customer service. You can build your customer base because your customers will come back to you over and over again in order to utilize the warranty. You will be able to increase the chances that your customers give you word-of-mouth advertising because customers will have the chance to experience your excellent service and want to share this experience with others. Finally, you will be able to offer better service because you will know the people and the cars who are coming to be serviced. This will allow you to intrinsically know the cars and repair them more quickly.
2. Allows You to Form Consistent Bonds With Parts Vendors
The second reason why you want to be sure that you offer extended warranties is because it increases the number of parts that you are going to need regularly. This allows you to order safely in bulk knowing that you are going to be able to use up all of the parts, depending on how many people have purchased your extended warranty offers. You can form relationships with the parts vendors, get better deals on the parts that you are purchasing, and ensure that you are able to get your customers the best prices. This will cut down your maintenance costs and help you make the extended warranties much more profitable.
For more information, talk to a company that specializes in dealer services extended warranties.