Since the Covid-19 pandemic began, interesting things happened within the used vehicle market. Initially, there was a drop in the supply of used vehicles because there was a reduction in trade-ins and the fact that there were less cars bought at auction. Simultaneously, demand for used cars increased as people were looking for a lower-cost alternative to a new vehicle, and also, in part, due to people avoiding public transit. This has created a hot market for used vehicles. With lower supply and higher demand, used vehicles are selling well, even those with high mileage. Pre-owned cars and trucks are taking up a larger part of dealership inventory and are often yielding greater margins than new models. This is good news for the dealership!
With this increased demand for used vehicles comes an increased need for effective wear and tear coverage and protective services such as SmartProgram. In fact, the used vehicle side is quickly gaining on the new vehicle department when it comes to Finance and Insurance (F & I) products. The reason? Customers want assurances that their used vehicle will perform as well, or virtually as well, as a new vehicle and they are demanding equal or near-equal coverage for their purchase. Independent and franchise dealers alike can offer amazing aftermarket coverage to sweeten the deal for used car buyers.
The usual F & I product mix offers extended warranties, maintenance plans, anti-theft products, gap insurance and credit protection. However, one of the most appealing products to the used car buyer are service contracts for products such as windshield and paint protection, unlimited cosmetic repairs such as scratch, paint chip and dent repair, interior upholstery repairs, and protection for vehicle rims, keeping tires safe and roadworthy. These service products provide peace of mind to the used car buyer, keeping the vehicle in tip top shape for as many years as the contract they purchase while maintaining high resale value.
SmartProgram offers all of these protections in a manner that is organized, fast and worry-free. With SmartProgram’s easy online service and VIP Customer Care Team customers can reach us at any time day or night, quickly and easily, in whatever manner suits them best. Furthermore, we’re mobile, so your customers can choose to come to us or we can go to them. The claim rate for SmartProgram is high, meaning that customers are using it and getting a lot of value out of it.
At the same time, SmartProgram provides a huge service to your dealership, working closely with you to ensure that the coverage options create interest and are well-suited to a used car sale. Our products are logical and make good investment sense, making this a quick sale that customers will easily grasp.