3 Tips to Sell VSC’s to Credit Union Buyers
Car buyers that belong to credit unions always seem to have an advantage. Lower rates (most of the time) and the ability to simply shop their local lots with a draft in hand. Members are very loyal to their credit unions and it’s a constant battle with dealership F&I departments to compete, especially when it comes to aftermarket products. But what strategies can a dealership employ to compete with credit unions and take some of those sales away? It’s not impossible and with a little creativity, it can add profits that you may have given up on.
Here are the tips that help your F&I compete:
- Special Price - Consider either coming up with a special price for ‘cash’ buyers (which is in effect what credit union members are when they have a draft in hand). Your F&I managers already know they undercut their plans so why not come up with a VSC that is close to the same price. Do you give up some gross? Yes but even if you sell a few more in a month than you would otherwise, you come out ahead on penetration percentage.
- White Label It - If you brand your VSC’s to your dealership, it can set up the perception in the mind of the customer that it’s a ‘local’ VSC rather than a plan that is administered through a company they don’t know. Their local dealership makes the relationship ‘sticky’...your customers won’t think twice before coming into your service lane when something goes wrong. Your name can make all the difference.
- Educate Early - Make sure that you have plenty of information on your F&I page giving buyers all the information they need to consider buying a VSC from your dealership. Explain the details on how the plans can help save money and preserve peace of mind. Highlight the benefits of the ‘ABC Ford Protection Plan’ by describing how easy it will be to get your car repaired locally and by your amazing Service Advisors.
Credit union buyers are not a lost cause for the two most popular F&I products you sell. You may have to sell it for less but it can still be a win for your team. You know you are losing on the finance gross but selling a handful of plans will help the bottom line.
Click here to see how truWarranty can set up your dealership with a plan that is easy to white label and gives you exceptional claims and marketing support.
At a time when used car dealers of all sizes are still recovering from record high wholesale prices and sparse inventory, being able to offer your customer a truly comprehensive total protection & service plan is a win for your F&I profits and for your customer.
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