While the idea of buying a car is simple, and easy enough for those of us in the industry to understand, the process is more complex than most buyers are prepared for. Buyers often approach an automotive purchase with misunderstandings about the best way to navigate the many options and opportunities involved in the process. This essential disconnect has resulted in three common myths that cause customers to overlook valuable options.
Let’s debunk them.
Myth 1: Vehicle Service Contracts are a Waste of Money
Many buyers are wary of additional contracts added during the car-buying process, especially vehicle service contracts. Buyers need to be educated that vehicle service contracts are not just an added upsell cost but will help them to protect and maintain their purchase with the expertise of OEM-certified mechanics. Some buyers believe these contracts are a waste or struggle to see their value.
Take the time to explain that vehicle service contracts offer real long-term value to a vehicle purchase, ensuring the vehicle will receive regular inspections and timely repairs that will keep it in optimal condition for years of performance. Vehicle service contracts are especially valuable to car buyers who plan to keep their car for the long-term and overcome factory limitations.
Example: A family buys a car that they will use for trips to school, work, and after-school activities for the next ten years. The service contract makes it possible to include easily affordable regular inspections and maintenance in the family routine, which helps them catch issues early and keep the car safely reliable as the kids grow up.
Myth 2: Financing Through Your Bank Is Always Cheaper Than the Dealership
When it comes to financing their vehicle purchase, customers may indicate that they prefer the familiarity of their own bank. While banks feel familiar, this doesn’t guarantee them the best deal, even when rates appear lower.
Dealerships build strong relationships with their financial partners and can often provide a uniquely competitive auto loan through those partnerships. It’s important to advise customers that they should look at long-term affordability.
Example: A young professional does all the necessary research and arrives to buy a car with approved financing from their personal bank. However, the dealership offers financing through a credit union partnership with similar rates, but lower fees and a personalized repayment schedule that meets the customer’s needs more closely.
Myth 3: You Should Never Buy Add-Ons
Add-ons make customers wary because it is an extra cost that they didn’t plan for, and they don’t like the idea of an ‘upsell’. However, dealers have carefully developed a menu of add-ons that are uniquely valuable to car buyers. These finance and insurance options help buyers enjoy more affordable long-term car ownership or stay safe from common financial dangers.
A top product and a great example is GAP insurance. When customers learn that GAP protects car buyers by ensuring that their car loan is paid in full if the car is totaled in a wreck during the repayment period, they are eager to learn more. Maintenance plans are an investment in easy, affordable, and professional maintenance to keep the vehicle in top condition. High-mileage vehicle service contracts make buying used cars a safer bet, and paint or tire protection make it safer to drive in regions where scrapes are a common risk.
Add-ons should be tailored to a car buyer’s unique environment, lifestyle, and financial needs to make car ownership safer and more affordable in the long-term.
Example: A city driver who frequently encounters tight corners, broken pavement, and fender-benders opts for tire and paint protection. When their car gets scraped by another vehicle or curb, they can enjoy convenient repairs without extra stress or costs.
Dispel the Myths to Reveal the Ideal Car Buying Experience
Understanding these car-buying myths opens the door to providing your customers with a better experience. Training your staff to understand the objections and how to handle them will further your dealership’s ability to educate your customers.
Contact us to learn more.