-90 percent of consumers surveyed said they would seek out a dealership that offers it-
EFG Companies, the innovator behind the award-winning Hyundai Assurance program, announced today the launch of Power x2, a powertrain protection vehicle service contract that doubles the benefit of the manufacturer’s powertrain warranty. The new contract delivers a vital dealer tool, proven by independent research indicating that 90 percent of surveyed consumers say extended warranties impact their purchase.
According to a recent EFG survey conducted by a third-party research firm, 62 percent of consumers said the manufacturer warranty significantly affects what make and model of vehicle they consider purchasing. New vehicles are exactly the same within a manufacturer brand from one dealer lot to the next, including MSRP and the manufacturer warranty. This underscores the need for dealers to give consumers a value-driven reason to come to their retail location versus the competitor down the street or across town. A recent statistic released by JD Power Automotive Internet Roundtable — that consumers now visit only 1.1 lots prior to purchasing a vehicle, down from three lots just five years ago — only amplifies the dealers’ need to deliver increased value to consumers.
As consumers continue to keep their cars longer than historical norms, ongoing maintenance costs are more top-of-mind when making purchasing decisions. According to EFG’s study, 48 percent of respondents expect to replace their cars every four to seven years, which could extend their ownership beyond 100k miles. By doubling the benefits of the manufacturer’s warranty, dealerships have the opportunity to use this trend to their advantage. Seventy-two percent of the survey respondents stated that they would go out of their way to purchase a vehicle from a dealership that is less convenient to them if that dealership doubled the benefits of their manufacturer’s powertrain warranty as a complimentary offering.
“In this highly competitive market, we know that dealerships need showroom traffic now, whether online or at their physical location, not six months to a year from now,” said John Pappanastos, President and CEO of EFG Companies. “Power x2 provides dealerships an immediate means of capturing market share based on current consumer wants and needs by moving past the price game to a more value-based conversation that motivates car shoppers to a transaction.” Dealerships can also increase fee income by offering exclusionary coverage that wraps around Power x2 for a specified timeframe, which includes:
- the suspension;
- the fuel system;
- the electrical system; and,
- the cooling system, among others.
Power x2 gives dealers a valuable toolkit to address each customer’s specific need when it comes to taking care of their vehicle and protecting their pocketbook. EFG also acts as a very strong extension of the dealer’s customer service through its in-house claims administration that operates according to above-industry standard target SLAs. This translates to enhanced customer retention and loyalty.
Contact EFG today for more information on this new product and how it can benefit your business.