Auto Car Esurabaya

Fairly simple and straightforward, the right vehicle service contracts provide an extra layer of protection and financial security to responsible vehicle owners.

At the same time, though, not all vehicle owners immediately recognize the value of these auto repair service contracts – even when they are provided by and facilitated by CarGuard Administration.

To better assist automotive salespeople better navigate these kinds of conversations, we highlight three of the most common objections to moving forward with CarGuard service contracts and how to overcome them.

Let’s jump right in!

“I Don’t Need One, Right?”

According to a report from Assurant Solutions, the most common reason car buyers object to moving forward with a CarGuard car repair service contract (or any other service contract, for that matter) is because they are unsure of exactly what these kinds of service contracts really are.

They understand that their vehicle purchases are protected by lemon laws. They know that dealerships regularly offer anywhere between 30 days and 90 days (sometimes more) worth of a warranty for their purchase, too.

Because customers aren’t fully aware of exactly what a service contract is (and how it differs from car repair warranties), they are hesitant to move forward with this investment in their vehicle.

By educating them about the ins and outs of a specific service contract (illustrating what CarGuard Administration contracts bring to the table, for example), it’s easier to overcome this objection before it’s even offered!

“Not Worth the Money”

29% of respondents in that Assurant Solutions survey said that they objected to moving forward with an auto repair service contract because they didn’t believe it would be worth the extra money.

This objection is a bit trickier to handle until you layout the value that the service plans from CarGuard Administration offer, especially when you break down just how much it costs to operate, maintain, and repair modern vehicles today.

The average car owner often only thinks about their “out-of-pocket” costs for owning a vehicle – their monthly car payment and insurance payment.

They don’t consider regular maintenance (oil and fluid changes), repair emergency budgets, or just getting out ahead of minor issues before they become major problems.

All of those out-of-pocket expenses – and more – can (at least in part) be protected with a CarGuard Administration plan.

“That’s Too Expensive”

Finally, 19% of car buyers report that auto repair service contracts are “too expensive,” and that’s why they aren’t interested in making this kind of purchase.

Similar to the objection we just highlighted a moment ago, this really all comes down to education and explaining how expensive auto repair can get over the course of owning a vehicle.

AAA recently released information showing that brand-new cars have average routine maintenance and repair costs of nine cents per mile – or just about $900 a year (if you’re driving 10,000 miles, on average).

If you drive your vehicle more than that – say 20,000 miles per year – you could be on the hook for $1800.

When broken down like that, it’s a lot easier for new car owners to see how much value a proper vehicle service contract from a company like CarGuard brings to the table!

Not a Warranty, But Plenty of Peace of Mind

At the end of the day, it’s important to remember that these kinds of contracts are not warranties in the traditional sense.

The services – especially from a reputable organization like CarGuard Administration – filling the gaps left by traditional warranties, covering out-of-pocket costs for repairs and maintenance that can get pretty pricey otherwise.

There’s a lot of value in this kind of investment, a value that responsible car owners are going to recognize straight away when you bring up the points we highlighted above.