Extended Service Plan
• REPAIR COST PROTECTION FOR THE MECHANICAL. ELECTRICAL AND COMPUTERIZED COMPONENTS OF YOUR VEHICLE
• BOTH GENUINE REPLACEMENT PARTS AND LABOUR COVERAGE
• COMPLETE ROADSIDE ASSISTANCE PROGRAM MOST PLANS)
• RENTAUALTERNATE TRANSPORTATION ALLOWANCES
• SERVICE AVAILABLE AT DEALERSHIPS ACROSS CANADA AND THE UNITED STATES
• PROTECTS YOUR BUDGET FROM UNPLANNED REPAIR EXPENSES • INFLATION “FIGHTER” PROVIDING PROTECTION AGAINST FUTURE RISING REPAIR COSTS
• UNLIMITED CLAIMS PERMUTES – CANNOT BE CANCELED
• FLEXIBLE TERM AND KILOMETRE PROGRAMS AVAILABLE TO MEET YOUR DRIVING HABITS
• FULLY TRANSFERABLE TO A SECOND OWNER
• INCREASES YOUR VEHICLE’S RE-SALE VALUE
• CAN BE INCLUDED IN YOUR PAYMENT
1) REPAIR COST PROTECTION TO THE MECHANICAL, ELECTRICAL AND COMPUTERIZED COMPONENTS OF THE VEHICLE – “COMPREHENSIVE”
Your manufacturer’s warranty protects your customer’s vehicle during the period that the vehicle most reliable (years I , 2 and 3). Your customer’s vehicle is most likely to break down in years 4, 5 and 6 of their ownership experience
The average total repair bill for a vehicle that less than $40,000 is currently $537.00 (parts and labour). For every dollar your customer spends on labour charges in your service department, they will generally spend 1.5 times that amount parts costs. For example if the labour charge is $80 / hour your customer spends 1.5 times $80 in parts ($80/hour labour x 1.5 = $120 parts). This equates to approximately $200 / hour for vehicle repairs. $537.00 divided by $200 = @ 2.5. This means that the average repair represents approximately 2.5 hours of parts and labour charges.
If the price of the extended service plan is approximately $2000, what you’re asking your customer to consider is prepaying 4 ‘average” repairs $537.00) in years 4, 5 and 6 of their ownership experience (remember, with a new vehicle they have 3 years of ‘comprehensive- coverage’. These figures merely represent “average” repairs. If your customer required major repairs to their vehicle, they would save hundreds, or possibly even thousands of dollars.