Avoiding Financial Potholes: How to Keep Your Dealership’s Revenue from Deflating This Spring

We’ve made it through the harsh winter, and the sweltering heat of summer has yet to arrive. While it’s true that vehicle service spending decreases during times of milder weather, that doesn’t mean your dealership should write off springtime as a dead-end for profits in the service department.

Spring, colloquially known as “pothole season” in some regions, is actually an opportune time for dealerships to capitalize on vehicle service contract (VSC) sales.

Spring Your Sales into Action

As the weather improves, people will begin to take more extended road trips, and with more traveling comes an increased need for maintenance and repair services. Proactive vehicle owners will want to take this time to get their cars up-to-date on preventative maintenance services and prepare for the lengthy trips ahead.

But, these services aren’t always cheap, and in the unfortunate event that a driver has a mechanical failure on a trip, he or she may have a hard time paying for the unexpected repair costs. According to a Bankrate report, approximately three out of five Americans do not have enough money saved to pay for an unexpected car repair.

Successful dealerships recognize this seasonal need for maintenance and repair services and thus, ramp up their VSC sales efforts. There are two major ways that dealers can capitalize on VSC sales during this time of year:

  1. Clearly communicate the need for VSCs to customers
  2. Make VSCs more affordable by offering installment payment plans

Let Your Marketing Communication Blossom

Spring is an excellent time to tap into your mailing lists and communicate with your customers about VSCs. When marketing or speaking to customers, make sure they understand the benefits of VSCs, some of which include:

  • A Fresh Start – The frigid winter temperatures can take a toll on vehicles, leaving many owners in need of maintenance and repair services come springtime. Deposits can build up in the engine, parts can break and many other unexpected problems can creep up. With a VSC, customers can protect their vehicles and themselves against having to face an unsightly bill.
  • Peace of Mind – As mentioned above, many Americans can’t afford unexpected repairs. A VSC will save customers money so that they can spend it on their trips, instead of on unforeseen repairs.

Pave Your Way to Increased Profits

VSC sales are one of the easiest ways to increase your dealership’s profits. They provide a consistent cash flow that will help your dealership cruise through any unforeseen financial potholes that it may hit this season.

Consider offering installment payment plans (IPPs), a tool that can make VSCs more affordable for your customers. An IPP eliminates the (often intimidating) up-front, out-of-pocket cost of a post-sale VSC, which can make VSC sales easier and thus profits more abundant this spring.

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