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Vehicle service contract penetration

278 6 months ago
For many dealers, the hardest part of selling a new vehicle is reaching the part where you offer a vehicle service contract. At this point in the sale, the customer has already had to make many decisions — including the actual decision to buy — and often find it very easy to decline politely. Nonetheless, customers have to realize that the unexpected can happen even to the best of vehicles. Read over the service contract so they understand what common problems it covers. This will go a long way toward increasing its value in their minds. Every time they need to pay out for a problem, their ROI for the vehicle drops.
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Vehicle Service Agreements - Century Automotive Service

The average interest rate during the reporting period stood at 4. As for acceptance rates, GAP, prepaid maintenance and service contracts made slight gains from the year-ago period, with respondents averaging about 2. Theft-deterrent products and tire-and-wheel protection also penetrated well for respondents, with most other products recording acceptance rates below 20 percent. The average acceptance rate for GAP among respondents was The average acceptance rate for service contracts increased from 35 percent for the first three quarters of to 46 percent for the first three quarters of last year.
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What is a vehicle service contract, and what are the benefits of obtaining one?

Many new cars—and some used or certified pre-owned ones—come with a limited warranty, which is covered in the purchase price of the vehicle. A limited warranty usually lasts for a certain amount of time or a certain number of miles and covers defects or some repairs and sometimes even routine maintenance. But what happens when the warranty expires? Typically, the owner would be percent liable for any repairs needed from that point on. This is where a vehicle service contract comes in.
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Century's Vehicle Service Agreements offer peace of mind from unexpected expense arising from mechanical failures in your new or pre-owned vehicle. Inicio Products. Century's Vehicle Service Agreements.
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