May 2008 - Feature
3 Products Primed for Powersports
Some of the automotive industry's best F&I products actually make more sense for powersports dealers and their customers. Industry insider explains how tire and wheel, GAP and theft protection can increase your bottom line.
By David Duncan
3. Tire and Wheel
Protection
Did you know that 23 percent of the
nation’s major metropolitan roads have pavements in poor condition, costing the
average motorist $413 annually in additional vehicle operating costs? It’s one
of the reasons why tire-and-wheel protection has grown in popularity.
Tire and wheel protection is one of
the newer F&I products that powersports dealers can add to their offerings,
as the benefits easily translate into value for the consumer. Most people can
relate to the expense of replacing a tire or wheel due to a road hazard.
Tire and wheel protection plans
replace tires and/or wheels due to a road hazard, which is defined as a
pothole, metal, nails, screws, glass, or anything in the roadway that should
not be there. In addition to the tire and wheel being replaced, most plans
cover expenses related to mounting, balancing, valve stems, and sales.
A good source for statistics to
help you build a case for tire and wheel protection is TRIP, a national
transportation research group (www.tripnet.org). In it’s March 2008 report,
TRIP noted that transportation agencies are facing significant challenges in
improving urban pavement conditions because of budget shortfalls and increased
vehicle travel. In fact, 18 states are expected to face budget shortfalls totaling
more than $14 billion this year.
Objection Handling: Tire and Wheel Protection
The
best way to begin the sale of road-hazard protection is to describe the
limitations of the factory warranty. Knowing that the wheels and tires damaged
by a road hazard are not covered by the factory warranty will help the customer
understand the tremendous expense this type of damage poses. By reiterating the
expense involved and the value of the coverage, many consumers purchase the
protection even if they initially have objections.
Customer: I’ve never
had a flat tire before.
Response: I
understand, but you never know when an unforeseen object in the road will cause
you to experience a flat. For only a few dollars a month, you can protect
yourself from the hassles of this situation and the costs associated with it.
Customer: I’ll just
take my chances.
Response: Do you
realize that your tires are the only part of your motorcycle or ATV that touch
the ground? Think about that. Tire and wheel damage can be the most expensive
repair you will have that is not covered by the manufacturer’s warranty.
Therefore, I’m sure you can see why most of my customers take advantage of the
tire and wheel protection program.
Customer: I don’t want
to raise my payments anymore.
Response: Staying
within a budget is important. You will notice that with this protection your
payment is $249 per month. Without it, your payment is $240 per month. So, for
only $9 per month, you are budgeting for any future expenses and the peace of
mind that goes with it. Would you prefer the 36-month program, or would you
like to upgrade to the premium 60-month program?
David Duncan is the senior vice president of sales at
Safe-Guard Products International LLC, a provider of F&I products to the
powersports industry.