Vehicle Service Contract Financing
Many new, and some used, vehicles come with a manufacturer warranty, which promises that if the customer's car has a mechanical problem within a specified time frame, the manufacturer will cover the repair costs. Once this plan expires, the customer is responsible for the total cost of any repair and service needs that arise in the future. Customers who are no longer covered by their manufacturer warranty but want assistance in paying for repairs should consider a vehicle service contract (VSC).
Line 5 is a finance and insurance (F&I) company that funds vehicle service contracts. We work with F&I departments at automotive dealerships to help increase their sales and earn more profits. Our payment options are flexible to meet all customers' needs, helping you close more deals quickly.
Features of a Vehicle Service Contract
The VSC finance plan kicks in when the manufacturer warranty expires. It will cover unforeseen repair costs and car issues that are not related to damage, including seal and gasket issues and electrical system failures. Some contracts offer additional features like roadside assistance or require customers to do repairs at the dealership's garage, bringing you business and profits. Though vehicle service contracts may be optional, they are beneficial for your customers.
Your dealership may offer VSC auto finance to customers who have just purchased a vehicle, and they are often available at any point the customer owns the car. The VSC ends when the vehicle has a certain number of miles on it or the specified time has passed. If these terms have not been met before the customer sells the car, the plan may pass on to the next owner. Customers often need to follow service recommendations from the vehicle's manufacturer to keep the vehicle service contract valid.
When you partner with Line 5, we will provide the warranty finance for your car sales. You can work with each customer to identify the terms that fit their budget best, so you can make more sales.
Benefits of Vehicle Service Contracts
The VSC finance car product is a beneficial offering for automotive dealerships. These plans provide high yield, minimal losses and a short duration, which helps your business make more money. For these reasons, vehicle service contracts have become a popular offering among automotive dealerships.
There are several advantages of VSCs, including:
- Increased customer loyalty and retention: When the customer has a problem with their vehicle that meets the conditions in the VSC, they will bring it into the authorized repair shop at your dealership. Since the customer is doing business with you regularly, they will be more likely to purchase another vehicle or other F&I services from your dealership in the future.
- Protection against the unforeseen:Unexpected malfunctions and failures can happen to any vehicle. A VSC gives the customer peace of mind that they will have financial assistance with any issue their car may develop.
- Cost savings: Customers will gain what they spend on their payments for the VSC when Line 5 covers the cost of a repair. These contracts save customers more money and are the preferable option to having to pay the whole bill.
- Quality assurance: VSCs covering repair and service bills imply there will not be many problems with the car in the future, suggesting that the vehicle they're protecting is reliable. Since the terms of the contract are based on the vehicle's performance, customers can trust that their car will run well.
- Boost resale value: If the VSC transfers to the next owner, the car's value will be higher, as it's likely that more buyers will be interested in a vehicle that comes with repair cost assistance.
- Longer vehicle life: Since the vehicle service contract offers similar coverage to the manufacturer's warranty once it expires, a customer can keep their car longer. Additionally, cost coverage for repairs means the customer will be more likely to take the vehicle in for service, thereby extending its life span.
Line 5 helps you offer a vehicle service contract to all your customers by providing financial backing.
Vehicle Service Contract Financing With Line 5
Line 5 partners with automotive dealerships to fund vehicle service contracts and other F&I products. We'll finance these plans for trucks, automobiles, sport utility vehicles (SUVs) and more. With Line 5, you will sell more products and make more money.
Our financial installments are affordable and limitless while avoiding the many setbacks that would otherwise prevent many customers from receiving financing:
- Approval: Line 5 guarantees approval for every customer, no matter their credit history.
- Down payments: We do not require a down payment.
- Interest rates and terms: You can work with the customer to adjust the interest rates and extended term length, even beyond the coverage term. This flexibility helps you meet a customer's budget and close the deal quickly.
Line 5 funds and finances the total of the VSC, including going beyond conditional approval limits. Once your customer reviews, signs and submits the agreement to us, Line 5 will have funding available within 48 hours.
Why Work With Line 5 for VSC Auto Finance?
Line 5 is a VSC financing company that helps automotive dealerships get every product, every customer, every time. We finance all F&I products and services provided at dealerships, so you can offer the services your customers need with confidence in our financial support.
We will take the time to understand your business goals to identify how we can help increase your sales and profits. Line 5 also offers F&I dealership software that manages your contracts and customer portfolios. This tool will expedite tedious processes, giving you more time to work on other objectives.
Contact Line 5 and Become a Partner Today
Help your customers get beneficial products and increase the profitability of your F&I department with Line 5. We'll provide the financial backing necessary to help all your customers gain a VSC for their car purchase. Sign up on our website to become a partner. For more information about our vehicle service contract financing, call 844-775-4635 or contact us online.
