How To Sell Extended Warranties On Cars

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This guide provides the basics on how to sell a warranty to a customer, including extended warranty sales pitches, auto warranty rebuttals and more.

Having the ability to sell extended car warranties is a lucrative skill. Knowing the psychology behind selling protection plans, along with having a basic sales pitch and rebuttal is helpful for any extended warranty sales pitch. Conversely, understanding this information is also helpful for those potential buyers that are negotiating an extended warranty. Above are some helpful tips:

Extended Warranty Presentation

Before looking at a script and various sales rebuttals, below are some key things to keep in mind when doing and extended warranty sales pitch:

Its In Their Best Interest: Make sure to impart to the customer that this isn’t part of a required service pitch. You are not just trying to make money off of them, as this is something can can help them save money and extend the life of their vehicle. Additionally, extended warranties add value to the bottom line of the vehicle.

Explain The Options: There are many options that are available for new and used vehicles. Along with broad coverage options, there are year to year upgrade options, assets protection programs, tire and wheel warranties, interior and exterior protection and more.

Touch On Pain Points: If the customer is bringing in an older vehicle that has had lots of problems or is complaining about their current vehicle’s reliability, use this as an opportunity to speak to their frustrations and offer a solution with an extended car warranty.

Extended Warranty Script

Most extended car warranty salespeople have a script they work off of and perfect when they are selling vehicles. Starting with a script that you use repeatedly allows you to hone in on your message over time. Below is an example of an extended warranty opening script:

“Hello, I’m with the vehicle processing department. I’m calling with regards to your vehicle. Are you the owner? Awesome, this is a courtesy call to inform you of the various coverage options available to protect you from unforeseen mechanical breakdowns.”

“Our records show that you have not activated the available coverage for your vehicle, It’s important that we provide you with the information while you are still available for coverage without having to get your vehicle inspected. We just need to verify a few things so we can get you in touch with our coverage specialist.”

Auto Warranty Rebuttals

Potential customers will invariably have concerns and objections. Below are some common rebuttals to these concerns:

Why did you call? – If the potential customer asks why you are calling, inform them that their vehicle’s factory warranty has expired or close to expiring and ask them would they be interested in extending their coverage to protect against unexpected mechanical breakdowns.
How much will it cost? – Tell them the coverage specialist can discuss the cost. If that’s your job, focus on the low deductible cost and low monthly premium options.
I can’t access my mileage: Tell the potential customer this isn’t a problem, but do they think its under 165,000 miles (it must be under 175,000)
Is this a scam? – Reply that this isn’t a scam. In order to make sure you qualify for coverage, verify the make, model, and year of your vehicle.
Which vehicle are you calling about I have a few? – We can help provide you with a plan that protects against breakdowns and malfunctions as long as its been between 2006-2020
How did you get my phone number? This is just a follow up from a previous inquiry you made about the vehicle.
My car doesn’t qualify. – Thats okay, do you or your spouse have any other vehicles that are eligible. Similarly, if the person doesn’t have a car, ask if their spouse has a car. (The person can co-sign on the vehicle).
I already have warranty on my vehicle: Your factory warranty is either expired or will expire soon. Our package can extend that coverage to protect you against expensive, unforeseen repairs.
Why do you want my information? This is to confirm your vehicle meets the requirements for new coverage. Your name is only needed for security and quality assurance purposes. If they ask why don’t you already have their info, ask to verity to make sure the info is still accurate. Yes we do I just need you to verify just to make sure the information is still accurate due to our clients selling or trading their vehicle.
What type of warranty is this? – This is a vehicle service contract, which covers most major parts on your vehicle.

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Extended Car Warranty Basics

Before someone considers buying an extended car warranty, they should first consider their ability to pay for their car repairs compared to the extended warranty cost.

An extended warranty on a car may save you money on repairs from the moment your manufacturer’s car warranty expires. Many car owners who purchase aftermarket protection don’t use it in the long run, as illustrated in this report.

Often, car dealerships package extended car warranties with the car they are selling and make extra money on the sale through commissions and marking up the car warranty price. While often referred to as ‘extended warranties’ the aftermarket protection plans sold by dealers and third party providers isn’t technically a warranty. Extended car warranties are actually vehicle service contracts, which work similarly to an insurance policy and safeguard car owners against unexpected mechanical breakdowns.

Extended car warranties cover car repairs for a specified period, with customers only having to pay a small deductible in the event of a covered repair.

Extended car warranties that are sold at dealerships are usually either sold by the automaker that manufactured the vehicle as add-on protection, or third party companies that have worked an agreement with the dealer to package their protection programs with vehicle sales. Often, automakers have deals with third party providers to help market and administer “manufacturer-backed” extended car warranties.

Manufacturer Extended Warranties

Most major automakers sell some version of a vehicle service contract. These are essentially add-on coverage customers can purchase to extend the coverage of the factory limited and powertrain warranties. Since a powertrain warranty covers mainly the engine, transmission, and drive axles, powertrain extended warranties usually extend this coverage for a longer period than the standard powertrain warranty that comes with every vehicle purchase.

On the other hand, the factory bumper to bumper warranty covers most of a vehicles components, including power seats, the navigation, electronics, etc. Purchasing extended bumper to bumper coverage is more expensive and recommended for newer vehicles.

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Third-Party Warranties

Though similar to manufacturer warranties, third part extended warranties are actually vehicle service contracts. For aftermarket extended car warranties, you aren’t restricted to using dealership repair facilities for servicing. Instead, most extended car warranties allow you get your vehicle serviced at any ASC licensed repair facility in the country. While the flexibility in deciding on your prefered repair facility is a plus, one downside of aftermarket extended warranties is that OEM parts aren’t always used for covered repairs.

The process of getting a covered repair for your car with an aftermarket extended car warranty can also be inconvenient. Often, car owners are required to pay out of pocket for service and have to wait for reimbursements from the provider later.

However, third-party extended warranties usually cost less than the manufacturer’s warranties. There are situations where one does not have the luxury of choosing between the two, especially when buying a used car.