If I asked you how many computers the average vehicle today has, what do you think that number would be? Would you be surprised if I told you that number was 30, or even 50? How does that compare to high-end luxury vehicles? Try doubling or even tripling that number!
Now, what do these computers do for us? The simple answer, EVERYTHING! At any given second, these super-computer vehicles calculate an obscene amount of data (in milliseconds) telling the vehicle how to steer, accelerate, parallel park, or even slam on the brakes to avoid a collision. We are talking Gigabits of data in milliseconds, truly a modern marvel supercomputer on four wheels.
Today’s vehicles are the most advanced machines that have ever been on the road. Most dealers offer an array of service contract coverages, from full exclusionary all the way down to powertrain only components. Industry statistics show us 50% or more consumers decline the extended protections available to them. So, why doesn’t every consumer buy an extended service contract if they plan on owning the vehicle past the manufacturer’s warranty expiration date? Is it the cost? Is it the product? Could it be both?
Let us say we have a hypothetical customer who declines exclusionary protection on their vehicle, which would cover all components (except wearable items). What is the next option? Some might say, “reduce the cost”. Well, that would devalue the product, wouldn’t it? Perhaps you could reduce the coverage to a more affordable option, but typically these reductions eliminate the items consumers need coverage on the most, the technology and computer components.
ADS has a solution for you, and the solution is simple. Extreme Tech. Extreme Tech is a stand-alone coverage for high-tech OEM components. Extreme Tech includes components such as navigation systems, adaptive cruise control, self-parking systems, collision avoidance systems, head-up displays, and more.
As independent agents, we see the value of customers insuring and protecting their investments with extended service contracts every day. Service contracts protect the consumer and enhance their ownership experience. In contrast, dealers can ensure their customers are leaving fully protected and can increase their retention through a positive ownership experience.
It is 2021 and it is time we evolve with the industry! Consumers are telling us they want protection on their technology, think how many people are willing to spend $10-$15 monthly to protect their cell phone.
Extreme Tech is the answer! It offers you a valuable solution to present to the consumers declining full protection. The biggest question to ask yourself is, “what could your extended service contract penetrations look like if you had a product that wasn’t competing or displacing to your current service contract offering? 60%? Perhaps more?”
Reach out to your ADS representative or visit our contact page for more information on the program.
Chad Bullock – Account Specialist – Advanced Dealer Solutions