While gas-powered vehicles are still very much the auto industry standard, more and more consumers are interested in electric cars. Although there’s a bigger upfront investment, both for the dealer and the customer, the long-term environmental benefits and fuel cost savings is appealing enough to justify the price tag. If your dealership has avoided electric cars due to the higher inventory price, you may want to reconsider. There are opportunities to provide solutions to common electric car buyer concerns and increase your F&I profit center through extended warranties and auto insurance savings.
Modern electric vehicles are still new to the market and their long-term durability is relatively untested. Extended warranties are especially important for customers who purchase used electric vehicles to ensure the car is covered from bumper to bumper, as opposed to standard powertrain warranties that typically only cover the engine, transmission and related parts. To sell more extended warranties for electric vehicles, communicate the potential increased repair costs to your customers. Because electric cars have different mechanisms, not every standard auto repair shop will be able to work on them. An extended electric car warranty can help guarantee that they’ll get the most out of their purchase.
To cover the cost of an extended warranty, find some cost savings elsewhere. On average, car insurance for electric vehicles is 21 percent more expensive than comparable gas vehicles, according to a NerdWallet survey. When you’re in the closing stages of a deal, there’s new technology available to help your customers find auto insurance while in your dealership. For example, DealerPolicy’s new app can provide on-the-spot insurance quotes to your customers while sitting in your F&I office.
Your dealership should create a strategy for electric car sales sooner than later - and preferably one that leverages the F&I department to create solutions and savings for your environmentally-minded customers.
