Starting a car dealership is a great way to get a good return on your investment, but you must be able to attract customers and build a good reputation. One of the methods that you can use to get the attention of customers is to offer an extended warranty on the vehicles that you sell, especially for cars that are used. In this article, find out why you should offer an extended warranty on the vehicles sold when you open your car dealership.
An Extended Warranty Can Be Customized
The best thing about an extended warranty is that you don't have to agree to fix every part of a vehicle that needs a repair. You can choose to only cover the fees charged for some of the major parts that stop functioning within the duration of the warranty. For instance, you can make sure the transmission is covered under the extended warranty due to it being one of the most vital parts for a vehicle to operate. If you make sure that each of the used vehicles being sold is thoroughly examined, you are not likely to have any problems with your customers needing to even use the warranties. You also have the option of making the warranties valid only for your own mechanic to make the repairs, which can help you avoid high fees charged by other mechanics.
You Might Get More Sales
If you intend on selling used vehicles that have been driven around a lot throughout the years, offering your customers an extended warranty might encourage them to make a purchase. It is important for customers to have peace of mind when it comes to how problems with the vehicles will be handled if they occur. As long as the customers know that they won't have to come up with money to cover untimely repairs all on their own, it can help them buy with confidence.
You Will Make Some Extra Money
Keep in mind that offering your customers an extended warranty should not be something that is done for free. You can make the warranties a side offer that they are not obligated to get but must pay a specific amount of money to get. When customers purchase an extended warranty, you can keep saving up the money in case someone actually needs a repair done. Be sure to offer dealer services extended warranties when you first open your car dealership.