Lifetime Powertrain Can Make All the Difference Now

The chip shortage is having an unprecedented effect on the auto industry and with most signs pointing to it lasting into 2022, dealerships have to make due with what they can get both new and used. No new cars mean used cars become more valuable and there is one strategy that can make them even more attractive on a barren lot…

Offering a Lifetime Powertrain Warranty on every used unit.

Think about it...make every used car, regardless of year or mileage, a car they can keep for years without worrying about the engine or transmission failing. Even new models don’t offer that level of protection as most only go out to 100k miles.

Here are a few tips to position this as a win-win for not only your customer but your service department, too -

• Free or Charge? - Your F&I provider (*ahem* we can help here…) should be able to offer this program at a very reasonable rate so that all cars can be covered and if so, the preloaded amount should be relatively inexpensive. Or offer for free and help set up the VSC upsell.
• Brand it - make sure it carries your dealership branding. They will have to return to your store for repair so why not make sure it has your name on it? White labeling a warranty creates a ‘sticky’ relationship between you and the customer...and the service department's bottom line will be better for it.
• Leverage the Shortage - Your customers already know that they likely can’t find the new car they want right now and if they come to the lot for a late model used, leverage that situation to highlight that all of your used cars offer a Lifetime Powertrain Warranty for extra peace of mind. Don’t shy away from highlighting that and why it makes used cars a great alternative to a new unit.

Ultimately, yes, there will be a cost to offer it on every used car but the benefits of VSC upsell opportunities, increased customer loyalty, and the increase in future service visits to your dealership outweigh the initial cost.

Click here to learn how truPowertrain, powered by truWarranty, can help you navigate these tricky waters by making your used inventory irresistible.