Tuning Up Service
Recently, I had the opportunity to conduct an education session for a dealership’s F&I and service departments. I asked the F&I manager to prepare a binder containing examples of every service agreement they had sold in the past 5 years. To these examples we added a telephone directory of each vendor’s support team as well as service agreement claims department.
As we began to review the policies in the training session, I discovered that the service writers did not know what the policies covered, nor did they have a clear understanding of the factory warranty. Instead, they found it easier to cite the service agreement company as the source of all their aggravations. If this scenario sounds all too familiar, take the next five steps to tune up F&I policies for your service writers:
Step 1: Review the coverage for each policy your dealership offers. Field questions until you are confident everyone can explain the basics of each policy to customers.
Step 2: Review the factory warranty coverage. Emphasize that every service contract entity views the factory warranty as the primary insurance carrier. The service contract is the secondary insurance carrier where claims are concerned.
Step 3: Recognize that all ancillary benefits such as rental, towing and roadside assistance begin on Day One. Trip interruption benefits are in force even during the factory warranty period.
Step 4: Ask each of your agency representatives for a directory of the support team and call them when a claim is in question. Ask them to get involved with the company on your behalf. Agencies will often pay some or all of a claim.
Step 5: Ask your vendor about Business-to-Business Internet platforms. This method of entering policies directly into the vendor’s computer via the Internet saves time and money. An online program will ensure accurate pricing and complete information should a claim need to be filed. The dealership will also be able to verify the claim status on line. Most service contract providers pay the dealership via credit card, which both eases account receivables and puts cash into the dealership bank account in a timely manner.
Remember, those who serve also need service. When in doubt about coverage or claims processes, communicate with your vendor. When the policies change, update the reference book at each service writer’s workstation. There’s no better way to keep service humming along.
Dealer Marketing, September 2005, p. 32