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The independents are aggressively after the dealership maintenance and repair business.

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Presentation on theme: "The independents are aggressively after the dealership maintenance and repair business."— Presentation transcript:

1 The independents are aggressively after the dealership maintenance and repair business.

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18 They now provide additional services and conveniences to attract your customers.

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32 When independents ‘conquest’ dealership maintenance business it reduces our customer count in the service department.

33 It weakens our relationship with the customer.

34 When customers get used to going elsewhere for regular maintenance it becomes easier for them to ‘stray away’ from the dealership for their repair business.

35 Appointment lead times are down from 7-10 days to 1-3 days.

36 Hours per work order are down from 2.4 hours to 1.6 hours.

37 To sell 70 hours per day, instead of requiring 29 customers, you now require 44 customers.

38 That’s a 52% increase in customers to sell the same hours.

39 Your FIXED Operation is no longer fixed!

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41 Work Order Count Hours Per Repair Order Effective Door Rates Parts to Labor Ratios Warranty Work

42 Your VARIABLE Service Department.

43 To prevent the erosion of your Service Department we must maintain a relationship with the customer after the manufacturer’s warranty expires.

44 Selling more Extended Warranties is one of the best strategies to keep the independents from ‘conquesting’ your maintenance and repair business.

45 If your Extended Warranty penetration is 50%, then the other 50% of your customers are probably doing business with the independents.

46 Increase your Manufacturer’s Extended Warranty penetration. Maintain and grow your maintenance and repair business.

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48 The Manufacturers’ X-tended Warranty Refund Program is ‘product enhancement’ that is designed to help sell more manufacturer’s extended warranties in your dealership and offer an outstanding ‘value proposition’ for your customers.

49 The Manufacturers’ X-tended Warranty Refund Program provides a full refund (to a maximum amount of $4,000) of a manufacturer’s new vehicle extended warranty should the vehicle owner/lessee not experience any mechanical breakdown claims during the term of the extended warranty plan sold. A 25%+ INCREASE IN EXTENDED WARRANTY PENETRATION !

50 The manufacturer’s new vehicle extended warranty sold must be a minimum of 60 months and exceed any manufacturer’s “bumper to bumper” coverage by at least 24 months in order for the Manufacturers’ X-tended Warranty Refund Program to apply.

51 Simply add the price of the Manufacturers’ X- tended Warranty Refund Program to the price of the manufacturer’s new vehicle extended warranty. Once the manufacturer’s new vehicle extended warranty has gone to term without mechanical breakdown claims, the vehicle owner/lessee submits a request for a warranty refund.

52 The REFUND includes: the purchase price of the Manufacturers’ New Vehicle Extended Warranty PLUS the price of the Manufacturers’ X- tended Warranty Refund Program PLUS applicable provincial and federal taxes.

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54 Marketed by: Co-Auto Ontario Automobile Dealer Services MDA Services of Alberta Select Independent Agents Administered by: RMA Underwritten by: Trisura Guarantee Insurance Company Training by: Wye Management

55 The Benefits INCREASED EXTENDED WARRANTY PENETRATION… IMMEDIATELY! INCREASED SERVICE DEPARTMENT CUSTOMER RETENTION and PROFITABILTY. INCREASED SALES DEPARTMENT RETENTION. INCREASEDEASED F&I PROFITS… NOW! IMPROVED CUSTOMER SATISFACTION! AN OUTSTANDING VALUE FOR YOUR CUSTOMERS!

56 Success Strategies GET ENTHUSIASTIC !!! ADVERTISE THE Manufacturers’ X-tended Warranty Refund Program WITHIN THE DEALERSHIP. UTILIZE THE PROVIDED BROCHURES AND POINT- OF-SALE MATERIALS. EDUCATE THE SALESPEOPLE.

57 Success Strategies UTILIZE THE PROVIDED POWERPOINT PRESENTATIONS. PRESENT THE Manufacturers’ X-tended Warranty Refund Program TO EVERY CUSTOMER. SET HIGH GOALS FOR EXTENDED WARRANTY PENETRATION !

58 Q - Do scheduled oil changes affect the Refund? A - No, additional benefits, such as oil changes and tire rotations, and benefits such as custom trip routing will not void the Warranty Refund Q - Does using the roadside assistance plan or having a vehicle towed void eligibility for a refund? A - If the claim for such items as roadside and towing are covered under the basic vehicle comprehensive warranty at the time of claim, it will NOT void eligibility. Any claim that is processed under the Manufacturers’ Extended Vehicle Warranty/Service Contract will void eligibility for a refund.

59 Q - I’m concerned that a customer might go to an independent service facility to pay ‘cash’ for a repair near the end of their extended warranty period rather than having it repaired utilizing their extended warranty at my dealership (in order to get their Refund). A - That is possible. However, you could look at it this way; Had you not sold that customer an extended warranty with the aid of the Manufacturers’ X-tended Warranty Refund Program, that customer could very well have been doing business with the independents all along instead of your dealership. Because you did in fact sell the customer an extended warranty (and made a profit up front), you at least had an opportunity to earn the customer’s business on the repair.

60 A - Furthermore, because the customer purchased an extended warranty it is more likely that they would have maintained their vehicle with your dealership as opposed to an independent. Finally, if the customer’s vehicle was towed into your service department, it’s not likely that they would have it towed again to another service facility for the repair if your pricing was competitive.

61 Q - How long is a vehicle eligible for Xwrp? A - As long as the term of the Xwrp and warranty is a minimum of 60 months from the date of sale of the Xwrp and exceeds the basic vehicle comprehensive warranty by a minimum of 24 months, the vehicle is eligible. Q - Is the Xwrp transferable? A - The Xwrp cannot be transferred or cancelled.

62 Q - What does a person with an Xwrp need to present to prove no claims were made? A - Proof of no claims is a simple matter of the Service Department checking the VIN history and when eligible, making note on company letterhead. This letter along with a copy of the Xwrp, the Manufacturers' Extended Warranty Contract, current vehicle registration and proof of insurance is submitted to the Claims Department and the Refund Cheque gets mailed to the Dealer made payable to the customer.

63 Q - Who insures that in the event of a claim the money for the refund claim will be there when the customer meets all the qualifying conditions? A - This product is fully underwritten by Trisura Guarantee Insurance Company - trisura.com trisura.com Q - Is the Xwrp available for RVs, Motorcycles, etc.? A - No, At the current time the program covers only new and nearly new auto vehicles.

64 Q - What if a customer's warranty is 60 months/100,000km and the customer purchases the Xwrp, but exceeds their 100,000km in the 4th year. When is the customer eligible to request a Warranty Refund? A - After the 60 months has expired. The Refund request must be submitted to and received by the Administrator within sixty (60) days subsequent to the Warranty Contract expiration by time (Full Term). “Full Term” means the number of months of the Warranty Contract, starting from the Effective Date and concluding no earlier than 60 months from the Effective Date.

65 “People who want milk should not seat themselves in the middle of a field and hope the cow will back up.” Elbert Hubbard

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