Tire AND Wheel: Not Just Tires
Road hazard protection has become a standard offering throughout the industry. Over the years not much as changed in terms of ‘pitching’ this product although various iterations of the program have been introduced. We have seen F&I professionals trending towards offering tire-only protection by default, although we know it takes a tire and wheel to keep a vehicle moving. Additionally, we know from all these years of claims experience that the wheels are very prone to damage and the costliest part of a claim/repair.
The question is: Why have we gravitated towards lesser coverage for our customers?
Perhaps it is because the retail price point is lower, thus an easier sale. Maybe it is because you can sell more of them compared to full tire and wheel coverage which boosts your product penetration. I will conclude this article with the assumption that price is the culprit and personal gain is the goal.
BBDS sales experience tells us that F&I professionals don’t sell stated component service contracts, or powertrain only, because they are less expensive; We sell exclusionary coverage because it is best for the customer and ultimately the dealership. We don’t sell 3-year terms on our ancillary products because it is less expensive; We sell 5, 6 or 7-year terms to maximize the potential benefits for our customers.
So, again, why are we offering tire-only coverage when it cheats the customer out of potential benefits down the road? It may be time to reevaluate your default offering and get back to what is best for your customer because we know that it is both the tires AND the wheels that are suffering damage each and every day. The customer deserves to know coverage for both is available to them. The customer response just might mean more enrollments!