Vehicle service contract providers have long known the value of the finance department of dealerships, but many now realize they shouldn’t put all their eggs in one basket. Customers are willing to consider ancillary products after the vehicle sale, as evidenced by the success of the growing number of companies – of varying reputations – that sell extended service contracts.
Companies currently making news for the class-action lawsuits that have been filed against them have cast a negative light on the industry. Extended auto-service contracts topped the Missouri attorney general’s list of scams for 2009. The AG’s office said customers complained of misleading ads, high-pressure sales tactics and significant, undisclosed limitations on coverage, reported the St. Louis Post-Dispatch.
Reputable companies need an opportunity to reach customers who are interested in purchasing a VSC, but are wary of being scammed. The service drive offers another point of contact with customers who might be receptive to purchasing a maintenance product.
However, service advisors are often ill-prepared to make an effective presentation to customers. In response to this concern, The StoneEagle Group has developed the SEcureSales Tool (SST). This web-based solution provides service advisors with a simple and automated method to sell vehicle service contracts.
SST can be populated with data directly from the DMS to eliminate all duplicate data entry for the service advisor. SST includes a six-step process to ensure all customers get the same presentation without placing undue burden on the service department.
Vehicle Information – Required fields are uploaded from the open RO or service appointment.
Rate Listing and Quote Generation – Administrator responds with VSC plans available for the specific vehicle and provides a quote that can be presented to the customer.
Owner Validation – After the customer selects a plan, the service advisor validates the owner information.
Payment – The down payment and recurring payments to the premium finance company are accepted.
Payment Confirmation – The service advisor confirms that the customer agrees to the payment.
Print Contracts – The service advisor prints the premium finance contract and the vehicle service contract for the corresponding administrator.
The Van Tuyl Group, Inc. has been using SST in its dealerships for more than 8 months and has seen positive results, says Kent Anderson, field operations manager.
"Functionality is key for an advisor to be able to assess the eligibility of customers and then create and deliver a contract in a short time frame," Anderson says. "The SST system has taken away a lot of the headaches we used to deal with. It has eliminated hard-to-read handwritten agreements and the need to manually route all documents."
Anderson adds that the web-based program also allows the service and F&I departments to work more closely. When service advisors are busy, F&I managers can meet with eligible customers and provide a professional, experienced product presentation.
Once the contract is finalized within SST, all contract data are delivered nightly to the corresponding premium finance company and VSC administrator. Additionally, SST includes a reporting module that allows the administrator and dealer to immediately pinpoint performance and production metrics by dealer, dealer group and user.
