FLADCO News

Vehicle Service Contracts Create Value and Drive Profits

Posted by Mark Mackson on Aug 10, 2016 7:00:00 AM

Vehicle Service ContractsDealerships often overlook vehicle service contract opportunities, leaving money on the table when closing a sale. Whether as an add-on to a new car sale or an additional offering for a high-mileage purchase, a proven vehicle service program will increase sales, customer satisfaction and profits to your dealership.

A robust vehicle service program will boost your dealership through:

  • Increased Sales: Buyers want peace of mind with their purchase and look for a warranty they can trust. Find a provider that covers an array of makes and models and offers plans that are both affordable and can be included in the bank financing.
  • Higher Profits: In addition to experiencing higher gross profits on the retail sale, your dealership can participate in underwriting profits as well, which makes vehicle service contracts a great source of additional revenue.
  • Better Customer Satisfaction Index (CSI): Vehicle service contracts can provide added value and give customers the peace of mind that their vehicle is protected from costly mechanical breakdowns and free of expensive repair bills.
  • Less Auction Fees: Turn your “As-Is” vehicles into viable retail sales by providing a service contract on higher mileage units. This will greatly increase the opportunity for additional sales and profits to your dealership.
  • Service Referrals: Use a plan that is valid at any ASE Certified shop nationwide, but will always direct repairs back to your dealership when possible. This provides an additional source of revenue for your service department that otherwise might go elsewhere.

Think of a good service contract plan as more than a small profit add-on item for the F&I Department. The right program can transform your dealership into an effective additional profit center that consistently drives more sales and business to your dealership.

Call FLADCO today for a private consultation to learn more about vehicle service contract programs.

New Call-to-action

Topics: Vehicle Service Contracts


Mark Mackson


Mark is the Founder and CEO of Fladco.
He has over 30 years of Financial and
Group Purchasing experience.

Add a comment