5 strategies to effectively position extended car warranties to EV customers

June 21, 2024

Experts agree the future is electric. But as with any new technology, it will take some time, and the expertise of knowledgeable dealership staff, to help customers understand and feel comfortable before they purchase an EV.

Extended car warranties can be an effective tool to boost EV sales. The following article outlines some effective ways dealers can market these warranties by highlighting the benefits and addressing common concerns.

Highlight cost savings

  • Comparison charts: Use charts to compare the potential out-of-pocket costs of common repairs with and without an extended warranty.
  • Total cost of ownership calculators: Offer tools that show the long-term savings of owning an EV with an extended warranty, factoring in reduced maintenance costs and potential repair savings.
  • Fuel savings calculators: One of the biggest benefits to EVs is obviously their fuel savings. Using a fuel calculator can help actualize this benefit to consumers.

Emphasize battery coverage

  • Battery assurance programs: Create specific programs focused on battery performance and longevity, which are often the most significant concern for EV buyers.
  • Warranty extensions: Highlight how extended warranties cover battery replacements or repairs, alleviating fears of battery degradation.

Build trust with testimonials and case studies

  • Customer testimonials: Share stories from current EV owners who have benefited from extended warranties.
  • Case studies: Provide real-life examples of how extended warranties have saved customers money and hassle.

Train sales staff with EV-specific training

  • Sales training: Ensure salespeople are knowledgeable about EV technology and the specifics of the extended warranties. Train them to discuss the warranties confidently and answer any questions.
  • Role-playing: Practice scenarios where sales staff can effectively communicate the value of extended warranties leveraging scenarios related to EV situations.

Utilize EV-specific point-of-sale materials

  • Visual displays: Use posters, banners, and digital screens in the showroom to promote the benefits of extended warranties.
  • Informative handouts: Provide handouts and brochures that customers can take home, outlining the details and benefits of extended warranties.

By employing these strategies, dealers can effectively promote extended car warranties for EVs, addressing consumer concerns and highlighting the long-term benefits of such coverage.