With the cost of cars and car repairs on the rise, sales of extended auto warranties are heating up. But before you start cold calling auto warranty leads, make sure you’re prepared. Sale professionals need to understand the needs of each prospect considering a warranty. A consultative sales approach will give you good results, provided you ask the right questions along the way. Here are five that should be in your sales script.
1. Why Are You Shopping for an Auto Warranty?
Car buyers purchase warranties for a wide variety of reasons and with an equally broad set of expectations about what they’re buying. Work efficiently by zeroing in on what issues are important to this particular prospect.
For example, a shopper may drive an hour to work and back every day. They could be concerned about wear and tear on their new car purchase. Another could have a fear of sudden and unexpected high-dollar repair costs. Another could be worried about general vehicle reliability. Each customer journey here is unique.
An open-ended question where you ask your prospect to talk about their needs and their concept of a sales solution will help you guide them towards the right product.
2. How Much Coverage Are You Looking For?
There’s a wide variety of coverage levels available for extended vehicle warranties. At the cheaper end, contracts will cover key components, while the upper-end coverage is more comprehensive. As these details can get into the anatomy of a car, take the time to answer your prospect’s questions. Most people aren’t auto mechanics, so it’s easy to stumble over the terminology.
Other aspects of coverage are more understandable. Many warranty customers realize they want a contract that will cover a complete visit to the repair shop under a single deductible. While some products will charge a deductible for each repair for a lower cost, many find it worthwhile to go with a single deductible option.
Speaking of deductibles, that’s yet another coverage aspect you should be prepared to help your prospect with. Higher deductible warranties offer a lower cost for the product upfront, but it also means some repairs won’t be covered, which might not be the best option in the long run for some customers.
3. What Is Your Warranty Budget?
The cost will typically be a high concern for auto warranty buyers. An extended warranty is a companion product to what may already be an expensive vehicle purchase, so customers are sensitive to price.
It’s best to get an idea of what your warranty customer thinks they can afford. From there, you can look at what features are most important that might affect cost, cover the variety of payment options available, and even discuss special offers from warrantors.
Also, be sure to lay out what can be adjusted and what can’t. The make and model, age, and mileage of the vehicle have a lot to do with warranty cost — and they’re not something a lead can change, short of picking another car.
4. Do You Have a Preferred Payment Method?
Most warranty programs have several ways customers can pay for the product. This can help cost-sensitive customers quite a bit. Again, the customer is the focus, so frame the options to show how they can benefit the prospect.
Up front payment means the customer pays for their policy in full when they sign up. These folks enjoy not having to worry about any further coverage bills.
Financing the cost of an auto warranty is possible when a shopper rolls the price of coverage into their new auto loan. This is great for prospects who are worried about another big upfront cost when buying a car and means they only have one car-related bill to pay each month. The downside for buyers with budget foresight is that their warranty cost will now accrue interest at the same rate as their auto loan amount.
Still another option lets warranty buyers get a payment plan that’s separate from their auto loan. Advise your prospects of any fees or possible penalties for this service. They can then compare the added charges to that of rolling coverage into their auto loan financing to find the best deal.
5. May I Ask You Some Personal Questions to See if You Qualify for a Discount?
Your prospect is looking for a good deal, and there’s a good chance you’ll be able to help him find one. Many warranty providers offer discounts for target customer groups. Be sure to ask your lead more about themselves to determine if they qualify. Often, first-time warranty buyers could get a discount, as well as U.S. service members and veterans, seniors, government employees, and so on. It’s often worth it to ask since the better deal a customer gets, the more they’ll tell their friends about it.
Asking the right questions — and actively listening to the answers — is a crucial step to success. Your goal should be to work as efficiently as possible and maximize your customer’s upfront satisfaction for repeat business and referrals. The right questions will help you get there.
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