3 Reasons Why a Lifetime Powertrain Warranty Should Be Standard on Every Sale

At a time when new car inventory for some OE’s is continuing to struggle due to the chip shortage, used car inventories are becoming more valuable and the prices have risen of a record peak this past Spring of almost 30% higher YOY. Suddenly old cars have become hot again.

As such, dealers have to do whatever they can to move units on either side of the lot to maintain sales momentum as we move into the later part of 2022.

One way to make sure your used car inventory is as appealing as possible is to offer a lifetime powertrain warranty. And if you offer it as a preload, even better.

Your Customers Want It…So Why Not?

Used car shoppers' first concern is always how long they have for any kind of warranty protection and if they know that the powertrain (arguably the most expensive system to repair) coverage added into the price of the car, it should be an easier sell. 

If you’re not offering it on every car, maybe now is the time.

There are a few pretty compelling reasons why now may be the right time to add this to your inventory. 

  • Marketing Advantage with Private Label - Offering a preloaded lifetime powertrain warranty helps drive traffic to YOUR service department. If the customer sees the coverage as branded to your store, they will naturally have no issue coming to you for the major work needed. 

In fact, many will assume that they must bring it to you (though technically they can go to another Authorized Facility). With TruLifetime, customers enjoy a smaller ($100) deductible if they come to the selling dealer for repairs. Marketing it under your dealership name puts that in their mind that they should come to you first and that’s a big win for your service lane.

  • Speaking of Service Benefits - Your shop benefits from not only doing the work itself and getting quick reimbursement through the provider, but they get opportunities for other repair or maintenance upsells when the car is on the lift. Customers may be in for a transmission repair but could easily have those brake pads replaced since they won’t have to come out of pocket on the bigger repair. They have a captive audience that’s happy to save on the big stuff.

  • Raising CSI Helps A Lot - Customers will see your dealership as investing in their vehicle and helping to make sure costly or unexpected repairs don’t impact their ability to make their monthly payment or put their family in financial jeopardy. You are seen as the dealer who cares, the dealer who wants to make sure an engine or transmission repair doesn’t empty their bank account. 

That matters when CSI surveys go out and it helps ensure a steady flow of referrals that sales depends on. Happy customers come back and happy customers tell others to buy from you when their repair issues are taken care of with minimal friction and headache.

  • Sell More Cars - Seems so simple, doesn’t it? But dealers who are not offering a Lifetime Powertrain Warranty are not seeing the power of that for moving units. If your customer has the choice between your 2020 Chevy Silverado with a LPW and one across town with no LPW, which one do you think that customer will choose? Advertising that ALL of your cars have the protection will blow up your sales numbers month after month. Your store is offering value that other dealers may not be willing to match.

If you are considering adding a Lifetime Powertrain Warranty to your entire used inventory, make sure you are working with a provider that has responsive claims administration with a stellar reputation and one that will not hit you with surprise fees. 

TruLifetime has $100 (selling store)/$500 (outside 50 mile radius) deductibles designed to encourage customers to come back to you, full marketing collateral support to make sure your customers know you offer a lifetime powertrain warranty, and it’s non-transferable/non cancelable. We have also included EV motors in our coverage as well which is critical now with more coming to market.

Give us a call today to see how TruLifetime can provide that invaluable measure of financial security for your customers and strengthen the ‘why buy here’ proposition for your dealership. We know that the challenging times are still with us but we aim to make it easier for you to drive profits while making your customer happy for ‘life’.

publisher
category
Powertrain Warranty
date published
September 30, 2022

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