Adrian Anania says F&I managers lose sales by calling products extended warranties, which customers distrust and often violate compliance rules. Rebrand them as Vehicle Service Agreements that cover mechanical and electrical breakdowns with customizable terms and transfer options. The terminology shift improves penetration rates and avoids legal problems.
Chapters
If you're presenting extended warranties and not vehicle service agreements, you are killing your penetration. Customers all the time get called and solicited to buy an extended warranty and they hang up immediately. You've seen all the ads for it. Extended warranties are things where stuff's never covered and we can't even do that for compliance. When you cut that out and replace with vehicle service agreement, not a vehicle service contract, but an agreement, agreement to cover mechanical, electrical breakdowns for customized time and mileage, and that that customer has the ability to take those responsibilities away from them and transfer them back onto us, they feel like it's something they want to do and they want to pull themselves to your solution. So stop saying extended warranty and replace it now with vehicle service agreement and send this to an F&I manager who still uses extended warranty so they can stop doing it immediately.