MenuMENU
SearchSEARCH

Selling Warranty Compliance Plans

Do-it-yourself customers will tell you they prefer to save a few bucks by performing their own maintenance. F&I trainer has the perfect response for this common objection.

Ron Reahard
Ron ReahardPresident of Reahard & Associates
Read Ron's Posts
December 5, 2017
4 min to read



This month’s video question comes from Steve in St. Louis, home of the City Museum — an interactive theme park where, for only $12, anyone can be a kid again. Steve says, “Maintenance is a really popular product at our dealership. But lately, we’ve had some customers that want to save some money by doing the maintenance themselves. How would you handle this objection?”

Everyone knows that one of the best ways to avoid expensive repair costs is to properly maintain your vehicle. For most manufacturers, required maintenance items specified in the owner’s manual are performed at the owner’s expense. A few manufacturers include all the recommended maintenance on their vehicles for a limited time. It’s usually one of their major selling points.

"Just using the term “warranty compliance program” to describe a maintenance plan will dramatically increase customer interest in the product, since the failure of or damage to vehicle components due to lack of required maintenance is typically not covered by the manufacturer’s limited warranty."

Most complimentary maintenance plans include an oil and filter change at predetermined intervals, lubrication of key chassis parts, and tire rotation. Most plans also include a comprehensive, multipoint inspection that includes checking tire pressure, tire wear and various fluid levels, as well as visually inspecting specific items that are prone to deterioration and wear and tear.

Unfortunately, most people don’t like to prepay for anything, but they do want to make sure they comply with the manufacturer’s maintenance requirements. Just using the term “warranty compliance program” to describe a maintenance plan will dramatically increase customer interest in the product, since the failure of or damage to vehicle components due to lack of required maintenance is typically not covered by the manufacturer’s limited warranty.

By grouping all manufacturer-recommended maintenance into a comprehensive program, a warranty compliance plan can offer significant savings over purchasing those services individually. In fact, the total cost over two, three or four years may actually be less than what a customer would pay at Scruffy Lube just for oil changes.

A warranty compliance program helps ensure all the maintenance requirements needed to keep the factory warranty in effect are performed when they are required to be performed. It also provides documentation that it was done. Keep in mind that maintenance requirements are no longer limited to oil changes.

See, with today’s longer service intervals, most manufacturers include required inspections as part of their maintenance requirements. These multipoint inspections must be done by a trained technician. If problems arise because these inspections weren’t done, the manufacturer may refuse to cover the repair on grounds that the recommended maintenance was not done.

Plus, each time a vehicle’s VIN is entered into a dealership’s computer system, it automatically checks to determine if there are any service bulletins or recall repairs that need to be completed on the vehicle. This is one of the most important reasons to have your maintenance performed at the dealership.

Having a detailed service history on your vehicle showing that all your maintenance was performed at the dealership when it was required to be performed can dramatically increase its resale value. Plus, when you have your vehicle serviced at the dealership, it shows up on the Carfax report. Having the ability to produce documentation of all the work that has ever been done on the vehicle — and prove it has always been properly maintained according to the manufacturer’s specifications — will ensure your customers get the maximum return on their investment. So, if a customer says he wants to save money by doing the maintenance himself, you might say something like:

F&I manager: I can certainly understand why you would want to do that. You certainly don’t want to spend any more on maintenance than necessary, right?

Customer: Right.

F&I manager: However, with today’s longer service intervals, there is a lot more to maintaining a vehicle than just changing the oil. This is actually a warranty compliance program that includes a multipoint inspection recommended by the manufacturer and performed by a trained technician. Plus, at each service interval, all fluid levels are inspected and replenished, per the manufacturer’s specifications, using only factory-authorized parts and fluids. More importantly, every time your vehicle’s identification number is entered into our dealership’s computer system, it automatically checks for service bulletins, software updates and recall repairs that need to be performed on your vehicle, reducing the number of trips to the service department. And you don’t want to spend any more time or money maintaining your vehicle than you have to, right?”

Customer: “That’s true.”

Steve, thank you for your question. Your YETI is on the way. Don’t forget to submit your own question for a chance to get it answered and receive a free YETI. Because it’s a beautiful day to help a customer!

Got a question or objection for Ron? Use your mobile phone to record a brief video (shot landscape style!) of your question and upload it to go-reahard.com/ask-ron.

Subscribe to Our Newsletter
No form configuration provided. Please set either Form ID or Form Script.

More Blogposts

So Here's the Dealfrom Rick McCormick May 26, 2020

Fill the Void!

What is your F&I process filled with? Two ingredients will always drive acceptance levels, customer satisfaction, and overall profits: trust and value.

Read More →
So Here's the Dealby Ronald J. ReahardJanuary 16, 2019

5 Ways to Get Better at F&I in 2019

Top trainer lists five critical areas top-producing F&I professionals will be focused on this year.

Read More →
So Here's the Dealby Ronald J. ReahardDecember 6, 2018

Salespeople Can Be So Arrogant

F&I managers have a professional justification and an ethical responsibility to forbid salespeople from barging into your office while you are meeting with customers.

Read More →
Ad Loading...
So Here's the Dealby Ronald J. ReahardNovember 8, 2018

Cash Rebate as Cash Down Payment

Top trainer counsels an F&I pro who wants to put a ‘customer cash’ rebate toward the down payment to reduce their customer’s interest rate.

Read More →
So Here's the Dealby Ronald J. ReahardOctober 9, 2018

Help! My Dealership Is Packing Payments

Top trainer comes to the rescue of an F&I manager who fears an antiquated, discredited, and deceptive sales tactic has taken root at his store.

Read More →
So Here's the Dealby Ronald J. ReahardSeptember 6, 2018

Sharing the Profit

After losing members of his sales team, a dealer asks the magazine’s resident F&I expert for his take on paying salespeople on F&I income.

Read More →
Ad Loading...

Menus Don’t Work Miracles

A fancy new menu can help streamline processes and improve customer engagement, but it won’t replace the hard-won skill and compassion of a true F&I professional.

Read More →

Avoiding the AAA Objection

Top trainer advises F&I pros to eliminate the ‘I have AAA’ objection by downplaying the very real — but relatively minor — roadside assistance benefit included with most service contracts.

Read More →

(Video) Capture Missed VSC Sales

In response to a reader question, the magazine’s F&I wiz updates his plan for re-pitching service contracts to customers who declined the protection at the time of delivery.

Read More →
Ad Loading...

The Dealer Moved My Goal Posts

Top trainer has hard-earned advice — and a word of warning — for F&I pros whose dealers seem to change their pay plans every time they have a good month.

Read More →