what are some sales techniques or rebuttals for selling extended car warranties?
Thursday, September 2nd, 2010 at
8:40 pm
Editor’s Comment:
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I’d have written and video testamonies from customers who weren’t sure they should get the warranty but were glad they did because of unforseen problems.
1) Tell the prospective car buyer just what the extended warranty will pay for. Transmission, motor, U-joints, or whatever. Be sure to give that person information on how much a new transmission would cost with labor and parts. Tell them that it is like a health insurance policy. You don’t expect to get in an accident but you can sleep better knowing if you do, you have the insurance. Smile when you talk. Talk slowly and don’t rush through it. Chances are they have been told by friends NOT to buy the extended warranty so you have to be extra persuasive and nice. Don’t appear pushy either because that is a sure way to lose the sale.
Please…. don’t oversell it!!!!! I work for an extended warranty company and I get so sick of getting yelled at when I talk to people who think they have a "bumper to bumper powertrain warranty.." ok now think about that. Powertrain means engine and transmission only, how can it be bumper to bumper? The answer is sales people get so eager to sell these contracts they flat-out lie sometimes and promise the moon, when it just isn’t true. So Mister Joe Customer calls with his powertrain warranty, wants his radio replaced, and screams for a supervisor when he finds out he’s been had.
Best thing is to explain honestly what is covered, what isn’t, how long it’s covered, making sure they understand everything. As an employee of one of these companies, I can assure you we’d rather have properly informed customers who understand their contracts. They’ll find out in the end if they’ve been lied to, and then they will run their mouths in a negative way both about your dealership and my company, because they think we’re in cahoots to push these contracts on as many people as possible. Customers who find out that they were lied to will not be back to your dealership, and odds are that their family and friends won’t either.