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[Video] Tip of the Week: Selling the Vehicle Service Contract

January 10, 2013

Do you understand the theory of Possible vs. Probable? Well, it’ll help you sell more vehicle service contracts if you do. The F&I Professor weighs in.

Comments

  1. 1. Mark K [ February 26, 2013 @ 12:38PM ]

    I totally understand the message, however a consumer may interpret it as maybe I shouldn't be buying this vehicle since you're telling me that its probably going to break. That is a delicate subject and one I think should be avoided. Better to package a full warranty with other products showing a package discount based on a customers driving habits.

  2. 2. Brett Smith [ April 09, 2015 @ 09:03AM ]

    I think you missed the message on this. What he is trying to say is that the manufacturer feels good enough about the car and their processes that they warranty the car for the unlikelihood that they installed a defective part or installed a part incorrectly; assuming that issue will come up during the warranty period.

    Vecchioni is comparing that to the likelihood that a car simply wears out or breaks due to conditions or driving habits after the risk of defective workmanship has disappeared. He is compartmentalizing the VSC and distinguishing it from the manufacturer's warranty as a different product.

  3. 3. Mark Panzarino [ March 16, 2016 @ 08:43AM ]

    Mark K-

    Once of my very best closes for VSC's is the NASCAR close. Toyota, Ford, Chevy, Etc.. employ the very best mechanics to build and maintain their vehicles on a constant basis, but parts still fail. All brands break down from time to time. Even the "indestructible" Toyotas. If Toyotas never broke down, then what are all of those mechanics doing in the shop?

    If is not a question of if, but when.

    Many families find it easier to roll in the cost of repairs into the low APR car loan, rather than racking up high interest credit cards when a part fails.

    -Mark P

 

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[Video] Tip of the Week: Presenting the Value

The national average for service-contract penetration stands between 30 and 40 percent, which means about 65 percent of customers are denying the product. So, who’s making the right decision? United Car Care’s John Vecchioni weighs in.