
Many dealerships often find themselves asking why offer extended warranty at dealership locations. The truth is, extended warranties are more than just an add-on; they are a strategic tool that can transform a dealership's service menu. By offering extended warranties, dealerships not only enhance their offerings but also build a trusting relationship with their customers. These warranties serve as a safety net for buyers, reassuring them that their investment is protected.
For dealerships, extended warranties are invaluable. They foster loyalty and repeat business, providing peace of mind to customers and additional revenue streams to the dealers. As we explore the benefits and methods of implementing extended warranties, it becomes clear how this approach can lead to increased customer satisfaction and, ultimately, boost profits.
Understanding Extended Warranties
Extended warranties cover the cost of certain repairs or replacements beyond the standard warranty period. They help keep vehicles in optimal condition without unexpected expenses. For dealerships, this approach ensures that customer vehicles remain in top shape, enhancing the overall ownership experience. While some might confuse them with standard warranties, extended warranties kick in once the original warranty expires.
There are typically two main types of extended warranties available for dealerships:
- Manufacturer's Extended Warranty: Offered directly through the car manufacturer, this warranty resembles the original factory warranty but extends its duration. It often includes comprehensive coverage for parts and labor across a wide range of services.
- Third-Party Extended Warranty: These are offered by third-party companies, potentially providing more flexible options. They might include coverage for older vehicles, customizable plans, or services unavailable in manufacturer's warranties.
By offering these options, dealerships can cater to a wider array of customer needs, ensuring they choose the plan that best fits their situation.
Benefits of Offering Extended Warranties
Adding extended warranties to a dealership's offerings brings multiple benefits. Here's how they make a difference:
- Customer Peace of Mind: Customers gain confidence knowing repair costs are covered for a longer period. This assurance often leads to greater satisfaction with the purchase.
- Additional Revenue Stream: Extended warranties are not just customer benefits; they also generate recurring income for dealerships. By including warranties in their packages, dealerships see an increase in service department visits, further boosting income.
- Increased Customer Retention: When a dealership offers extended warranties, it encourages customers to return for services. This continued interaction often leads to more sales and a stronger relationship between the dealer and customer.
In today's competitive market, standing out requires more than just great vehicles. By integrating extended warranties into their service offerings, dealerships create a holistic buying experience that meets the expectations of today's informed consumers. This strategy not only strengthens customer trust but also lays the groundwork for long-term success.
How to Implement Extended Warranty Programs
The successful implementation of extended warranty programs requires planning and the right partnerships. Certain steps can ensure a seamless integration:
1. Training F&I Managers: Effective salesmanship is key. Training the finance and insurance team to understand and explain the benefits of extended warranties ensures they can communicate their value clearly to customers.
2. Partnering with Reliable Providers: To offer top-notch warranty services, partnering with a trusted provider is essential. Companies like Auto Shield Canada offer robust options tailored to dealership needs.
3. Marketing the Warranties: Promoting these warranties helps dealerships attract potential buyers. Using brochures, in-store displays, and digital marketing campaigns can effectively communicate the benefits to customers.
By focusing on these areas, dealerships can enhance their service offerings, ensure customer satisfaction, and drive long-term business success.
Real-Life Applications and Success Stories
Extended warranties prove their worth time and again. Imagine a customer who purchases a vehicle with an extended warranty. A few years later, the car breaks down unexpectedly. With regular warranties long expired, an extended warranty steps in. It not only covers repair costs but also saves the customer a significant out-of-pocket expense. This experience positively impacts how the customer views the dealership and strengthens their loyalty.
Dealerships see extended warranties as a bridge to stronger customer relationships. By ensuring customers return for repairs, dealerships maintain ongoing interactions. This repeated contact often leads to new sales opportunities and recommendations. Customers appreciate the dealership's proactive approach, fostering trust and satisfaction.
The Value of Extended Warranties for Dealerships
By integrating extended warranties into their service offerings, dealerships position themselves as forward-thinking and customer-focused. These warranties lead to an enriched customer experience and form a key part of a dealership's long-term strategy. They provide reassurance, foster trust, and strengthen dealer-customer relationships.
Dealerships looking to boost profits and enhance customer satisfaction should seriously consider offering extended warranties. They open the door to increased revenue, customer loyalty, and improved service reputation. Dealerships who see the value in this offering pave the way for growth and success.
If you're weighing the benefits and wondering why offer extended car warranty plans at the dealership as part of your approach, it could be the move that sets your business apart. Auto Shield Canada helps you build stronger relationships with customers while creating steady revenue through warranty programs designed to support ongoing dealership customer retention. See how the right partner can make a difference and bring long-term value to your service strategy.
Disclaimer: The information provided in this article is intended for illustrative purposes only and should not be considered as actual insurance advice. Our articles offer insights and general guidance on various insurance topics however, they do not substitute professional advice tailored to your specific circumstances. For expert, personalized insurance advice and solutions, please contact our licensed insurance brokers.
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Tire and rim damage is one of the most common — and costly — frustrations Canadian drivers face. Whether it’s a pothole in Toronto or a curb scrape in Montreal, road hazards are unavoidable. That’s where dealership protection plans come in.
Why Tire and Rim Protection Is a Must-Have for Dealerships
Tire and rim protection isn’t just about fixing flats — it’s a smart way for dealerships to increase revenue while offering real value. Customers walk away knowing their vehicle investment is protected, and you create a long-term service relationship that builds loyalty.
What Does a Tire and Rim Protection Program Cover?
These plans typically include:
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Repair or replacement of tires and rims due to road hazards like nails, potholes, and curbs
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No out-of-pocket expenses for the customer at the point of claim
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Towing and roadside assistance, depending on plan tier
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Quick service turnaround through approved repair networks
Unlike factory warranties, which cover defects, tire and rim programs focus on wear and tear from everyday driving. That makes them especially valuable in climates with rough winters and poorly maintained roads — a reality across much of Canada.
Dealership Benefits: More Than Just Extra Revenue
Adding tire and rim protection to your F&I suite pays off in multiple ways:
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Boost Gross Profit: Protection plans increase F&I per-vehicle revenue
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Improve Retention: Customers return to your dealership for covered repairs
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Enhance Brand Value: Offering protection shows your dealership cares beyond the sale
Want real numbers? Dealerships offering tire and rim coverage see up to 30% higher F&I product penetration when plans are properly positioned and bundled with other services.
Sales Tactics That Work
To increase plan uptake, your sales team needs more than product knowledge—they need to understand why customers say yes. Use the following tips:
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Localize the pitch. “Given how rough the roads are here in [city/province], this protection saves our clients hundreds every year.”
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Use real-world examples. “Last month, a client came back after hitting a deep pothole — we had a new tire and rim installed within 48 hours, at no cost to them.”
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Bundle with other protections. Pair with winter tire packages, extended warranties, or vehicle appearance plans.
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Keep it simple. Offer a visual one-pager that compares “Covered vs. Not Covered” costs.
Integrating Tire and Rim Protection Into Your F&I Workflow
Smart dealerships don’t sell this plan as an afterthought. Instead:
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Present it during menu selling, not as a post-sale add-on
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Equip your F&I managers with objection-handling scripts and real testimonials
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Offer tiered coverage levels (basic, plus, premium) to appeal to different budgets
Want to streamline your rollout? Auto Shield Canada provides white-labeled materials and live training to help your team close more plans with confidence.
Why Partner with Auto Shield Canada
Our tire and rim protection plans are purpose-built for Canadian drivers and dealerships. We understand the terrain, the claims realities, and the sales process. Partnering with us means:
âś… Dedicated onboarding and training
âś… Seamless integration with your F&I systems
âś… Competitive pricing and flexible commission models
Final Thought: Protection That Pays
Tire and rim coverage isn’t just good for your customers — it’s good for business. It strengthens your brand, grows your profit margins, and keeps customers coming back. The key is thoughtful positioning and reliable delivery.
Learn more about our protection programs and how they can fit seamlessly into your dealership’s F&I process:
👉 https://goautoshield.com/road-hazard/
Disclaimer:
This content is intended for educational purposes and should not be treated as insurance or financial advice. For personalized guidance, contact a licensed advisor or Auto Shield Canada representative.
Glass protection plans aren’t just optional add-ons—they’re high-impact tools that help dealerships grow revenue and improve customer satisfaction. With Canadian roads facing increasing wear from gravel, salt, and debris, windshield and glass damage has become one of the most common—and frustrating—vehicle issues.
Why Glass Protection Plans Are a Smart Move for Dealerships
By offering glass protection as part of your dealership’s warranty lineup, you position your team as a proactive, customer-first operation while creating new revenue opportunities.
What Is Glass Protection?
Glass protection plans typically cover the repair or replacement of windshields and other automotive glass damaged by road hazards or debris. Coverage often includes:
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Windshield chip repairs or full replacements
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Front side window damage
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Fast turnaround with no out-of-pocket cost for customers
This type of protection provides peace of mind and adds tangible value at the point of sale. Customers appreciate having a seamless, in-house solution rather than dealing with third-party auto glass vendors later.
Benefits for Canadian Dealerships
For dealerships, the impact goes beyond customer experience. Here's how glass protection helps your business:
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Increases per-unit revenue through bundled F&I packages
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Improves retention by giving customers a reason to return to your service department
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Differentiates your offering in a competitive retail market
How to Sell Glass Protection Effectively
Selling these plans is about solving a real pain point—not just upselling.
Proven sales tactics:
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Use local context. Reference regional road hazards (e.g., Alberta gravel, Ontario salt, Quebec potholes) to make protection feel essential.
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Create urgency. Emphasize how one chip today could mean a $700 windshield replacement tomorrow.
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Bundle strategically. Include glass protection in care packages with extended warranties or rust protection.
Make sure your sales team knows the product inside and out. A confident explanation makes all the difference in closing rates.
F&I Integration: Where the Real Money Is
Glass protection belongs in your F&I department—not as an afterthought. The most successful dealerships:
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Train F&I managers to present it alongside extended warranties
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Use digital menu selling to showcase value clearly
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Incentivize teams based on plan attachment rates
Maximizing Profitability
Profitability is about more than sales volume—it’s about margin, efficiency, and satisfaction. Here’s how to make it count:
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Tiered pricing based on customer profile or geography
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Customer testimonials to reduce objections and build social proof
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Post-sale follow-up to ensure service appointments are booked when chips occur
These tactics reduce cancellations, increase plan usage, and improve long-term customer engagement.
Drive Loyalty and Revenue with Auto Shield Canada
Glass protection isn’t just a nice-to-have—it’s a loyalty driver and profit center. Auto Shield Canada partners with dealerships to deliver high-quality protection plans tailored to your sales process.
âś… Boost per-unit profit
âś… Improve CSI scores
âś… Differentiate your F&I offering
Ready to unlock your dealership’s potential?
Disclaimer:
The information provided is for illustrative purposes only and does not constitute personalized insurance or F&I advice. For custom recommendations, please speak to our licensed advisors.
Extended warranties aren’t just a bonus upsell — they’re a loyalty-builder, a revenue generator, and a service differentiator for Canadian dealerships. But selling them effectively takes more than a script and a handshake.
How Canadian Dealerships Can Sell More Extended Warranties — Without Sounding Like a Salesperson
If you're looking to improve your F&I conversion rates while creating real value for customers, here’s how top-performing dealerships in Canada are making extended warranties a win-win for everyone.
1. Lead with Transparency, Not Tactics
Canadian consumers are increasingly cautious about extended warranty products. To earn their trust, dealerships must be completely transparent about coverage and cost.
Use clear, jargon-free explanations. Provide side-by-side breakdowns of what’s included and what’s excluded. Use real-life examples to highlight value — such as common repair costs in your region. For example, showing that a transmission repair can cost over $1,400 in Toronto makes the decision more concrete.
Whenever possible, personalize the conversation with stories from real customers and demonstrate the financial impact of warranty coverage in relatable terms.
2. Train Sales Staff to Act as Advisors
Effective warranty sales start with how the product is presented. Leading Canadian dealerships are rethinking their sales training. Instead of focusing on aggressive tactics, they’re building teams that act more like consultants.
Regular training sessions, including role-playing with realistic buyer scenarios, help sales teams feel confident and natural. Encourage staff to ask thoughtful questions about driving habits, ownership goals, and service expectations.
The most successful teams are those that align the warranty discussion with the customer’s lifestyle, budget, and needs.
3. Make the Financing Work Smarter
Cost is often the top reason a customer hesitates on warranty coverage. By offering flexible financing options, dealerships can make the purchase feel manageable and stress-free.
Consider bundling the warranty cost into the vehicle loan to spread it over time. Promote interest-free options for a set period or seasonal warranty promotions. These strategies make the value clear and reduce friction at the point of sale.
Tailoring financing to local buyer behaviors and average income levels also helps improve closing rates in competitive regions.
4. Digitize the Warranty Process
Modern buyers expect convenience and control. Dealerships using digital presentation tools during the F&I process consistently report higher close rates and better customer satisfaction.
Allow customers to explore warranty options at their own pace using tablets, in-office kiosks, or post-visit digital summaries. This method not only builds trust but also reduces the likelihood of cancellation or post-purchase regret.
Adding short explainer videos or digital brochures can further simplify the buying decision and create a more professional, seamless experience.
5. Maintain a Relationship Post-Sale
The warranty conversation shouldn’t end once the papers are signed. Ongoing customer engagement drives satisfaction and future service revenue.
Set reminders for scheduled maintenance tied to the vehicle’s coverage. Offer exclusive perks for warranty holders — like discounted seasonal services or loyalty credits. Make occasional check-ins part of your service routine to demonstrate the dealership’s commitment to customer care.
Customers who feel supported after the sale are more likely to return for future service and to recommend the dealership to others.
Conclusion: Build Trust, Not Just Sales
Selling extended warranties at a Canadian dealership isn’t about pressure — it’s about helping customers make smart, confident decisions. By focusing on education, transparency, flexible financing, and follow-up support, dealerships can transform warranty sales into long-term customer relationships.
Auto Shield Canada helps Canadian dealerships achieve exactly that — with training, tools, and warranty solutions designed specifically for our market.
Want to Improve Your Warranty Close Rate?
Connect with Auto Shield Canada to learn how we help F&I teams succeed with real strategies and practical support that deliver measurable results.