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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Staying on top of the best F&I products is key for dealerships aiming to increase their profitability in 2025. As the auto industry continues to shift and change, dealerships need to be proactive in offering solutions that meet customer needs and expectations. By doing so, they enhance customer satisfaction and keep their businesses thriving.
In 2025, Canadian dealerships should carefully consider the top F&I products to stay ahead in the market. These products, focusing on customer value and dealership growth, are designed to offer significant benefits, both in terms of customer service and financial returns. From extended warranties to prepaid maintenance plans, each F&I product has a unique role in ensuring your dealership remains competitive and profitable.
Understanding F&I Products
Finance and Insurance (F&I) products are essential tools for any dealership looking to boost its income and customer service. These products extend beyond the typical vehicle sale, adding value by covering various customer needs, such as repairs or loss protection. They’re about providing peace of mind to your customers while contributing to the dealership's bottom line.
The importance of F&I products lies in their ability to increase dealership profitability. By offering these products, dealerships can generate a steady stream of revenue while ensuring customers feel secure in their purchase. This approach can improve customer retention and satisfaction, making it a win-win scenario for everyone involved.
Top F&I Products for 2025
Extended Warranties are a standout option for dealerships and customers alike. They offer peace of mind by covering repair costs after the manufacturer’s warranty ends. In 2025, keep an eye out for warranties that include flexible coverage options and hassle-free claim processes, making them more attractive to customers.
GAP Insurance, or Guaranteed Asset Protection, is another important product to consider. It covers the gap between the car's actual cash value and the balance still owed on a loan in the event of a total loss. In 2025, this product continues to be a must-have as it helps protect customers from substantial financial loss.
Prepaid Maintenance Plans present a convenient option for car owners to manage regular vehicle upkeep. These plans can build customer loyalty by encouraging regular service visits. In 2025, look for trends that emphasize digital integration and simplified plan management, making it easier for customers to keep up with maintenance schedules.
Ease into 2025 by integrating Tire and Wheel Protection. This coverage is becoming increasingly popular due to the unpredictable nature of road conditions. Customers will appreciate the foresight and protection it brings against potential damage that might otherwise result in costly repairs.
Lastly, Key Replacement Programs offer significant value in an era where car keys are no longer simple mechanical devices. These programs ensure customers aren't stuck without a car due to misplaced or broken keys. In 2025, their appeal lies in the promise of quick and affordable replacement processes.
Understanding these product offerings is just one step. To make the most of them, you'll want to select the right mix that complements your dealership's strategy and enhances customer satisfaction.
How to Choose the Right F&I Products for Your Dealership
Picking the best F&I products for your dealership doesn't have to be complicated. Here’s a simple approach:
1. Know Your Customers: Getting to know what your customers need and want can guide you in selecting the right F&I products. Conducting surveys or informal chats can provide insights into their preferences.
2. Understand Market Trends: Stay updated on what’s trending in F&I products. Trends often indicate growing demands and can highlight modern features that might appeal to your customers.
3. Evaluate Product Benefits: Consider the benefits each product offers. Focus on those that enhance customer satisfaction and, at the same time, contribute to dealership profitability.
4. Consult with Experts: Seek advice from F&I experts to better understand which products might best fit your dealership's goals.
This targeted approach not only helps in selecting the right products but also ensures that your customers leave with valuable protection plans they can truly benefit from.
Enhancing Dealership Profitability with F&I Products
Once you've got your F&I line-up, it's time to think about how to maximize your sales and profitability:
- Train Your Staff: Well-informed staff can make a huge difference. By training your employees about each product, they are better equipped to explain benefits and answer customer queries efficiently.
- Focus on Customer Service: Great customer service can lead to repeat business. When customers feel valued and well informed, they’re more likely to consider additional products.
- Highlight Product Value: Help customers understand the real-world advantages of F&I products. By sharing simple scenarios or examples, you can make it easier for them to grasp the practicality and long-term savings.
Providing excellent service and comprehensive product knowledge not only boosts sales but also fosters long-term relationships with your customers, ultimately increasing profitability.
Elevate Your Dealership in 2025
Looking forward, 2025 holds plenty of opportunities for dealerships willing to innovate and adapt. By regularly updating your F&I product offerings, you set your dealership apart as one that stays ahead.
Continuous improvement and an openness to exploring new product opportunities will keep your business thriving. It’s about building a reputation for reliability and forward-thinking, ensuring you meet the evolving needs of your clientele. By keeping up with industry trends and customer preferences, your dealership can remain a trusted and valuable destination for all vehicle financial needs.
Taking your dealership to the next level by choosing the best F&I products for dealerships in 2025 to boost profitability and customer satisfaction. Auto Shield Canada is here to help you explore smart options that keep your team prepared and your business ahead. Learn how to make the most of your offerings by partnering with our trusted experts in the field today.
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.
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:
✅ Dedicated onboarding and training
✅ Seamless integration with your F&I systems
✅ 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.
✅ Boost per-unit profit
✅ Improve CSI scores
✅ 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.