The vehicle service contract (VSC) has long been the bread and butter of the F&I profit center for dealers. When designed and sold correctly, the VSC doesn’t just add to a dealer’s PVR and bottom line, it allows them to build value in the investment. It also enhances the customer’s ownership experience, increasing the chance of that customer coming back for service and, more importantly, for a new vehicle.
But despite their importance to dealer revenue, VSCs have failed to keep up with a changing automotive world. Today’s market is dramatically different than in years past. For instance, trucks now outsell cars. People are holding onto their vehicles longer. And sticker prices have risen into uncharted territory.
The customer has changed, too. Today’s car buyer knows more and expects more value from their dealer and protection product. This has created a need for innovation in VSCs that can meet current demand. In response, we’ve introduced Assurant Vehicle Care, an innovative new family of protection products that delivers more flexibility, more coverage, and more value.
More mileage options for used cars means more choices
The Assurant Vehicle Care Service Contract allows dealers to offer more flexible mileage options for used cars — up to 200,000 miles. Given recent vehicle cost and inventory issues, this flexibility gives dealers a powerful tool in the fight for greater attachment. But that’s not all. New mileage band options mean dealers can offer more coverage terms, which creates more chances to close the deal, and more protection value for customers.
