DALLAS — EFG Companies announced the launch of Power x2, a vehicle service contract that doubles the benefit of the manufacturer’s powertrain warranty. In a survey, the company found that 90% of consumer respondents said the product would cause them to seek out a dealer that offered it.
According to the survey, conducted by a third-party research firm, 62% of consumers said the manufacturer warranty significantly affects what make and model of vehicle they consider purchasing. And with little differentiation between new vehicles offered for sale on dealership lots, operators need to provide consumers with a value-driven reason to come to their retail location vs. their competitors.
The new offering also represents the company’s response to consumers keeping their vehicles longer than historical norms. According to EFG’s study, 48% of respondents expect to replace their cars every four to seven years, which could extend their ownership beyond 100,000 miles. By doubling the benefits of the manufacturer’s warranty, dealerships have the opportunity to use this trend to their advantage.
Seventy-two percent of survey respondents stated that they would go out of their way to purchase a vehicle from a dealership that is less convenient to them if that dealership doubled the benefits of their manufacturer’s powertrain warranty as a complimentary offering.
“In this highly competitive market, we know that dealerships need showroom traffic now, whether online or at their physical location, not six months to a year from now,” said John Pappanastos, president and CEO of EFG Companies. “Power x2 provides dealerships with an immediate means of capturing market share based on current consumer wants and needs by moving past the price game to a more value-based conversation that motivates car shoppers to a transaction.”