Why Dealerships Should Market Service Contracts to Used Vehicle Customers
A used vehicle may be a great deal with a cheap price on a car that hasn’t been driven for long. However, it can be a poor deal if the vehicle needs substantial and costly repairs.
This is why vehicle service contracts, or VSCs, are of great benefit to a used vehicle owner. It gives them peace of mind and coverage if their vehicle breaks down to a mechanical issue.
For a dealership, marketing service contracts to used vehicle owners can increase the customer loyalty and enhance the dealership’s reputation.
VSC’s and Used Vehicles on the Street
Today, many consumers are reluctant to spend money on new cars when they have the option of buying cheaper used ones. According to S&P Global, the average age of cars on the road today is 12.8 years. This shows that drivers are holding onto their vehicles for as long as possible.
Consequently, dealerships can market service contracts to used vehicle drivers. This encourages them to think about the future, buy a vehicle service contract and protect their financial security.
Build Customer Trust and Loyalty
During the initial vehicle buying process, many customers do not choose to purchase a VSC. They may not understand the coverage, be tired of the sales process, or they may be waiting for the manufacturer’s warranty to expire.
Reminding customers that a VSC is a coverage option after the vehicle sale builds trustworthiness and loyalty, because it shows that the dealership is looking out for the customer. Dealerships know that customers are never happy when dealing with costly repairs – and a vehicle service contract is a way to protect those customers from unexpected breakdowns.
Improve a Dealership’s Reputation
For every business, it is important to keep its customers happy. In the age of Google reviews and social media, one unhappy customer can create a firestorm of negative impressions. For example, if a used car ends up needing expensive repairs, your customer is likely to post negative reviews.
On the other hand, if a dealership market service contracts to a customer, their repairs may be covered by that service contract. This will likely result in good reviews and word-of-mouth marketing.
Marketing Service Contracts to Used Car Owners
It is considered a best practice for dealerships to market service contracts to used car owners. It’s important that they understand the benefits and coverages. If this is done when the customer’s warranty is expiring, they will be more likely to think about protecting their purchase.
By marketing and selling vehicle service contracts to used car owners after the initial sale, dealerships increase customer satisfaction, and the customer will have coverage for their used vehicle, giving them peace of mind.
Top Trends in Automotive Marketing for 2026
Customer Loyalty, Dealership, Direct Mail, Electric Vehicles, Marketing, Safeguards, Sales, Service DriveIn the automotive industry, 2026 is going to be a year of pivotal moments for trends in marketing. OEM brands and dealerships alike will continue down the path of integrating data, technology, and genuine human connection. Today’s vehicle buyers expect experiences that mirror their favorite digital services, from personalized outreach to Prime speeds…