Tire Certificates vs Road Hazard

F&I Tips is a weekly informational video series brought to you by American Financial & Automotive Services, Inc.’s F&I University (FIU). Our associates bring decades of real-world experience in the automotive industry to this F&I Tips video series, as well as our five-day intensive F&I School at our corporate headquarters in The Woodlands, Texas.
In this video, Dwayne Wiggins discusses the differences between tire certificates and road hazard protection.
When you present road hazard and you talk about your contract, a lot of your customers feel like they have adequate protection through the local tire shop and those certificates. However, we know there are some differences between what the certificate offers and what you offer.
First thing is, certificates are per tire, your contract is per car. So, it accommodates every set of tires you can put on the vehicle for the next five years. Certificate reimbursement is generally based upon a prorated basis, your contract is based upon if it has 3/32nd left on the tire, you get a brand-new tire there is no proration. The local certificate is tied into the local tire store. So, if you do have an incident, no matter where you have it, you have to go back to that type of tire store; to where the contract you sell is good at any authorized repair facility in the continental united states. In addition, once you buy that certificate, if something happens and you have that tire replaced, you have to buy another certificate. So, it’s a built-in revenue generator for that tire store. Your contract is a one-time fee that once you buy it, it is good for the amount of time that you sign it up for. So, if it’s a five-year contract, it’s good for every set of tires for those five years.
Remember, customers sometimes feel that they have adequate protection at another source. Making sure that thy understand the differences really shows value to them and they will choose yours because yours makes more sense. From all of us at FIU, that’s your tip of the week.
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