NWC Service Contract Sales Training :Copyright 2009 National Warranty Corporation NWC Service Contract Sales Training National Warranty Corporation


Overview :Copyright 2009 National Warranty Corporation Overview NWC's training program provides expert guidance when selling extended warranty service contracts in fixed operations The program gives clear instruction on the presentation and how to handle objections. If used consistently you can expect to make a lot more money.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 1: Share What Their Existing Warranty Doesn't Do...Follow the Talk Track Steps Step 1: Share The Limits of their OEM Warranty What comes with the automobile is a __ month __ mile Limited Manufacturer’s Warranty. This is limited in several areas: It is limited to time/miles defects only and incorrectly built and installed parts (show the warranty booklet from the manufacturer at this time).


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 1: Share What Their Existing Warranty Doesn't Do...Follow the Talk Track continued Step 2: Share What their OEM Warranty WON'T Cover More importantly, let's go over those items that are not covered: Maintenance – oil changes, tire rotations, 15k service, all maintenance will be your responsibility. Rental Vehicles - Your manufacturer does not provide a car for you to drive when yours is in the shop. Wear and Tear - Let me give you some examples of what causes wear and tear. Climate; Road conditions; and Personal Driving Habits.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 1: Share What Their Existing Warranty Doesn't Do...Follow the Talk Track continued Step 3: Share When their OEM Warranty Coverage Ends Now earlier you said that you were planning on keeping the car for 5 years and you drive about 15K per year. Is that correct? (NOTE: This is information that you will need to gather from the initial customer interview, if you do not already). Great, let me put your driving habits on a timeline to show you exactly how your factory warranty will work.


OEM WARRANTY TIMELINE :Copyright 2009 National Warranty Corporation OEM WARRANTY TIMELINE


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 1: Share What Their Existing Warranty Doesn't Do...Follow the Talk Track continued Step 4: Share When OEM Warranty Coverage Ends on Timeline Where do you see yourself falling out of the factory warranty? (Check mark the timeline where s/he feels this will occur, if they are correct.) Ask the client, “Have you heard of your manufacturers' Frequency of Repairs Study? It is a required study to find out when the car begins to break down, wear out, or when the factory warranty will end.” In the first part of ownership (10k-12k miles) there is a high frequency of repair. I guess this would be called the “adjustment period” when parts on your car need to be adjusted to work together properly.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 1: Share What Their Existing Warranty Doesn't Do...Follow the Talk Track continued Step 4: Share When OEM Warranty Coverage Ends on Timeline After that, is the best time to own the vehicle. There is a leveling out period that is known in the industry as the gas-n-go period where you simply put gas in your car and go. This period lasts until it reaches about 30k miles and begins to wear out. Q: What do you suppose would happen to the frequency of repair at that point in time? Client: “Go up?” A: You are correct, it would go up.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 1: Share What Their Existing Warranty Doesn't Do...Follow the Talk Track continued Step 5: Introducing NWC's Service Contract I have always thought it would be neat to trade places with the manufacturer. We could go to the manufacturer and say, would like to protect the car in the first part of it’s life when it is new and just has a few defects, and would like you Mr. Manufacturer to protect the car in the second part of it’s life when it is used and wearing out, kind of like they are asking you to do. Unfortunately, that will never happen. The good news is we have a program that will work for you!


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 2: Share Features & Benefits ...Walk Through the Side x Side


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks My Father is a Car Mechanic F&I: That is great, is he an ASE certified mechanic? C: No F&I: That is unfortunate. The vehicles today use so many diagnostic tools that can cost up to $100k to purchase. Does he have these tools? I am sure that when your vehicle breaks down you will want the problem diagnosed properly wouldn’t you? C: Yes


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks My Father is a Car Mechanic - continued F&I: Great lets set that up for you C: No thanks F&I: I am sorry for misunderstanding your concerns about the product. We would like for your vehicle to be fixed by a properly trained ASE certified mechanic. These mechanics go through several weeks of training just to fix problems specific to your automobile. Let me ask you this, if you became sick with a serious illness, would you go to a veterinarian to get healed? C: No F&I: I agree, I wouldn’t either. Let’s make sure you have the proper health insurance for your car. Would you like a 5/75000 or a 6/75000? C: Okay let’s go with the 6/75000


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks My Father is a Car Mechanic – continued F&I: Great, now you can have him repair it and not have to pay for it. C: He does work for free now. F&I: I was afraid you were going to say that. Can I ask you a question? What happens to all of the paying customer’s cars at the shop as he is working on yours? C: I don’t know, I have never thought about it. F&I: They wait for your vehicle to get fixed. Imagine if your vehicle broke down this week and you were taking a trip this weekend. Your dad's shop is busy but because you are his child he puts all of the paying customers, who also need their cars, aside to fix yours (a non-paying customer) so that you can get to your weekend trip in time. Would you understand if your father couldn’t get to it? C: No, I would want it fixed.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks My Father is a Car Mechanic – continued F&I: I understand, wouldn’t it be neat to give him your broken vehicle and tell him, “Dad I know you are busy right now, please fix it as soon as you can. Also here is a copy of my service contract to pay for the fixing of my car. They will pay you the labor rate you have posted on your wall and reimburse me for a rental vehicle. By the way can you also let the ESC Company know anything else that needs to be fixed while you are at it. This way I will only pay one deductible for all the things that need to be fixed.” C: Sounds great to me, lets look at your plans.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks I Can't Afford It F&I: I understand, it seems like a lot of extra expense every month doesn’t it? C: Yes F&I: How would you plan on paying for a new engine or even a power window motor? C: I’ll worry about it then F&I: That is something I will definitely agree with you on. You will have more worry than is necessary for times like these. You will not only have the freedom of driving stripped away from you but the burden of finding the money to fix the problem you are dealt. For what seems to be a large amount of money per month invested now, will turn into your adjusted monthly payment. Your income will always rise and fortunately your payment will stay the same. I would like to draw something out for you very quickly...


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks I Can't Afford It - continued Payment with ESC: $450 a month for the entire time including blank checks that are signed by the warranty company. Payment without ESC: $420 a month for 36 months and then adjusts to a variable payment. Example: 36 months to 42 months you pay $420/month but a sensor needs to be replaced at $720 plus tax. Add another $120 a month to this payment. At 42 to 48 months $420/month nothing happens...48 to 60 months at $420/month computer problems complicate things in the 50th month. The computer caused an electrical failure. End result computer fix and electrical fix $2,325 plus tax. Add another $194 a month to your payments for the year. And so on…


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks I Can't Afford It - continued F&I: Wouldn’t it be much easier to invest $30 a month now to guarantee the problems will be fixed quickly and efficiently regardless of your financial position at the time of breakdown? C: Yes


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks I've Never Had Breakdown F&I: Seems odd to me you have never had anything go wrong with any of your vehicles. C: Well, nothing that really matters. F&I: I see but remember when we spoke about the risk the manufacturer takes in the least likely part the car would break? C: Yes F&I: And we both agreed they left you 100% responsible in the second part of the vehicles life when the vehicle is wearing out and more likely to break. C: Yes F&I: This program takes on responsibility the manufacturer should take as the multi-billion dollar corporation building these vehicles. For a small investment every month you don’t have to take on the responsibility of a multi-billion dollar corporation. C: I will still take my chances.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks I've Never Had Breakdown - continued F&I: Let me ask you a question, do you own a home? C: Yes F&I: Do you have fire insurance? C: Yes F&I: Has your home burned down before? C: No F&I: Why do you invest into this every month when you have never needed it in the past? [Note: We are not trying to encourage people to cancel their fire insurance. Be very careful of your tone of voice as you don’t want to come across as sarcastic.] C: Good point


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks I've Never Had Breakdown - continued F&I: Of course you have fire insurance because you are a smart person. This type of coverage as your fire insurance protects your assets from liability. It keeps your money where it should be, in your pocket! Let’s go ahead and set this up. C: Okay


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks The Last One I Bought Didn't Cover Anything F&I: That is unfortunate. Did you buy your last policy from us? C: No [see next slide if 'yes'] F&I: That explains the problem. We only offer the very best program available to our customers. I guess you could say that it is a company policy to do this. [Note: Grab the brochure and show the customer the different policies available. Show them the basic programs to the best.] F&I: Some stores try to give you the least expensive policy to fit into your budget. This may not be the best thing for you. We would rather convince you to spend just a little more to guarantee that when you have a problem you will have coverage that works. [Note: You may need to give them a break on the price to convince them you really do care about the fact they are covered.]


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks The Last One I Bought Didn't Cover Anything If the answer is yes; F&I: Do you have a copy of the policy? C: No F&I: How many miles were on your car at the time it was purchased? C: Around 60k F&I: I am sure, due to company policy, the best program was delivered to you based on the miles and year of your vehicle at the time of purchase. The great news is the vehicle you are buying now is newer and qualifies for the very best coverage available. Note: Show the customer the brochure and point out the difference.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks I Only Keep my Car for the Warranty Period F&I: Yes, may I ask you why you do that? C: This way I never have a worry or concern about something breaking down. F&I: Do you usually trade your car in at that time or sell it on your own? C: Sell it on my own F&I: This program is transferable so not only will it make your vehicle much easier to sell, it should bring you more income from the sale of your vehicle as well. Most importantly it gives you options. You can keep your car for a longer period of time should you have any unfortunate event happen around your normal trad-in time, for example you may lose a job, have death in the family, divorce, etc.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks I Only Keep my Car for the Warranty Period F&I: May I show you something? C: Yes F&I: (Note: You will need a residual guide for a large lending institution.) 1) Take the book out and figure out for the customer the value of the vehicle in 3 years based on residual value. 2) Now add another $3000 for the vehicle they will buy in 3 more years. Do the same calculation. Add the depreciation together. 3) You will get the total depreciation for 6 years worth of use. Now on the same piece of paper draw a line to separate your angle.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks I Only Keep my Car for the Warranty Period F&I: If you were to keep your vehicle for 6 years this would be the cost to you. 1) It should show a huge difference as the 1-3 years of ownership is by far the most depreciation. On average about 55%. 3-6 years have a much smaller depreciation factor at around 20%. Doing the math on this in front of your customers will blow their minds. 2) Of course, in order for this program to make sense they will need to take advantage of at least the GAP program and an ESC. They will be financing for a longer period of time and there is a huge risk of negative equity. 3) Since the factory warranty ends at 36 months and they will be keeping the car for longer they will need to extend the coverage.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks I Only Keep my Car for the Warranty Period F&I: Now, last but not least, after you show them the $4000 expense to make this work... 1) ...you will again want to encourage them to sell the car on their own. The residual value is based on wholesale auction values, not retail. 2) When you have a one owner, manufacturer maintained with records transferable service contract that looks brand new, how much more will someone pay for something like that? 3) The answer is simple, a lot more.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks I Only Keep my Car for the Warranty Period F&I: Now Mr. Customer, I can understand you don’t want any problems but can you see the huge amount of money you are spending every 3 years to avoid that problem? C: Yes F&I: Cars just shouldn’t cost people that much money. [Note: People are creatures of habit. The customers that trade every 3 years will still get the itch to trade in 3 more years, even if this sounded like a great program today. When you see these customers come in 3 years from now just grab them around the shoulder and say, “Don’t you remember the deal we made? Let’s cancel your program and get you set up again the same way but keep your car this time.”]


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks I Will Buy via my Credit Union or the Internet F&I: The important part is that you are interested in protecting your financial well being. C: Yes F&I: Great, do you have a copy of the policy you will be buying? As a courtesy to you our dealership, free of charge, will analyze all policies and give you an idea on the value you are getting. C: No, I don’t have one F&I: Yes, this is typical. See in the insurance industry you definitely get what you pay for. How much were they charging you for a policy and what was it they were offering? [Note: They will always give you a low sale price and be under the assumption that it covers everything for a super long time.] C: $750 and it is a 6/100k totally comprehensive. They said it is like the factory warranty.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks I Will Buy via my Credit Union or the Internet F&I: [Note: This is where you need to go to work. Remember they trust the internet and the Credit Unions, heck they are part of the family.] Very patiently ask them questions like: 1) Is it a reimbursement policy? 2) how large are the deductibles? 3) is the policy you are buying legal, is it approved to be sold in this state? 4) is it insured by a large “A” rated insurance company, do they pay into the state guarantee association? 5) is it mechanical breakdown insurance? These are all important questions that can defend the value of your product. In most cases with the right tone and the proper amount of enthusiasm you can destroy the competition with a little educating of the customer.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks I Self Insure F&I: It is great that you have the resources to do such a thing. May I ask why you would do such a thing on a vehicle with over 15,000 components? C: I am thousands of dollars ahead. F&I: I understand, do you also self insure your auto insurance. C: No F&I: When was the last time you filed a claim against your insurance company? C: 15 years ago or so. F&I: Hmmmm, sounds like something you may want to consider looking at...


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks I Self Insure F&I: Actually, you are very smart protecting your assets with an insurance policy. Earlier you told me you would be keeping your vehicle for at least 7 years. Do you know there is 2,555 days in the next 7 years. What do you suppose the chances are of your car having one bad day in the next 2,555 days? C: Probably a good chance.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks I Self Insure F&I: I agree. Please know that our shop charges $80 an hour for just labor alone. Parts are figured on double the labor rate basis. So, for every hour your car is in the shop you would figure $80 for labor and $160 for parts. That is $240 per hour that your car is in the shop. The mechanics are paid on a flat rate program, meaning they will do 12 hours of work in an 8 hour period. That is $2,880 just for one bad day in the shop. Now, what if your car had 2, 3, or more bad days? Also, please take in consideration that these figures are based on today’s labor rates. Wouldn’t it make much more sense just to budget these expenses at less than .80 a day? C: I guess that makes sense.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks That is Why I am Buying a Toyota F&I: I agree with you. Toyota builds the best Power Train available. In fact they are so confident that they guarantee it for 5 years/60,000 miles. It is the rest of the car we are talking about. Did you know that the other parts are assembled from other companies? Toyota only wants to take responsibility for these items for 3 years/36,000 miles. Do you find that odd that they will cover something for a certain period of time and something else for another? C: I guess


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks That is Why I am Buying a Toyota F&I: Please keep in mind that Toyota Motor Company puts millions of test miles on these cars each and every year. This multi-billion dollar corporation elects to take responsibility in the least likely part the car will break. How does that make you feel? C: I never looked at it that way. F&I: Look, all I can say is, if you saw the same car advertised later tonight when you got home with twice as much warranty coverage for $1500 more wouldn’t you be a little upset? Wouldn’t you rather have had that car instead? C: I guess so F&I: Great lets set it up


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks That is Why I am Buying a Toyota F&I: [Note: If you need further objection handlers then simply remind them of the service department.] Remember, your service department employs a service manager, service writers, and several mechanics that all have houses, cars, babies, children going to college, etc. These people are also going to dinner and the movies. They pay for all these things just like you and I do, with the money they make doing what they do, fixing cars. Your service may, at the most, have 2 lube racks. The rest are for repairs of these cars that never break. Another way is: Look, most people see the vehicle on the showroom floor and think, “Wow that is a shiny, new, great smelling car that hasn’t been driven and has been built by a car Company”. Most of this statement is true other than the car company part.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks That is Why I am Buying a Toyota F&I: A manufacturer is actually a parts company who assembles their parts to sell them as a package. They do this at a discounted rate today, expecting to sell parts in the future. Let me give you an example: The XBOX is purchased by Microsoft from a company called Flextronics. Flextronics sells the box to Microsoft for about $300. Why would Microsoft sell the new box for $150 including a game and a controller? Simple, they will sell more software. You will buy 10 games and upgrade in 2 years to the new box. Your old box will be sold on Ebay, that person will buy 10 more games, and so on. Your vehicle will probably go through 3 or 4 families by the time its life is over. How many trips to the parts department do you think a person will take on a car over a life time. The answer is unknown.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks Consumer Reports Tells Me Not to Buy One F&I: I have always wanted to know who started this rumor. (NOTE: Keep in mind Consumer Reports make statements like this in accordance with small appliances, not automobiles). They do warn people of paying too much and deciding whether people really need them or not based on ownership time. It is okay to agree with the customer on this issue only under those circumstances. If you are the type of finance manager that tends to overprice your service contracts, you may want to make an exception for this type of customer. Graphing out their ownership time is essential for a time customer to believe in this product. You can lead them down the trail to a point when you can ask them why they trade the vehicle at the very best time to own. They will of course ask you what you mean. This is where you would go to the residual guide once again and show them the benefits financially of keeping their cars longer and protecting them with a service contract.


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks Consumer Reports Tells Me Not to Buy One F&I: Another benefit to earn the customers trust is teaching them how to use their product. For example, in 7 years, do you suppose there would be some issues that need to be addressed? Let’s ask the customer the question this way: Mr. Customer, have you had a car break down in the past? (Customer will answer yes). Okay, when you were there to pick up your car from the shop did they give you a repair bill with other things that needed to be addressed, for example, leaking radiator, worn idle sensor, or valve gaskets are leaking? C: (Customer will say yes)


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks Consumer Reports Tells Me Not to Buy One F&I: “Great, wouldn’t it be neat to not have anything like that on your next repair bill? 1) You could walk into the dealership and tell the service advisor to have anything fixed that looks worn out (if the wear and tear feature is purchased) or broken. This will only cost you just one deductible as opposed to 2 or more. 2) Also, near the end of your contract, I would like to have you go into our service department and have the vehicle completely checked out. We will find the problems that need to be fixed and give you 3 to 4 more years of worry free driving. Selling logic is always the best route. If you are spending time looking for hot buttons you will lose. Make the situations real and easy to understand. Customers will appreciate you for your perspective and not be upset when you ask them 7 or 8 times to buy after they said no.”


NWC SERVICECONTRACT PRESENTATION :Copyright 2009 National Warranty Corporation NWC SERVICECONTRACT PRESENTATION Phase 3: Overcoming Objections ...Walk Through the Talk Tracks My Factory Warranty Will be Good Enough F&I: It is important to know if the customer is saying they will only keep the car that long or they never buy anything else. If they say they only keep the car that long of course the residual guide close is the one to use (objection #5). If they never buy anything else you can use the budget close or the fixed vs. variable payment close.


National Warranty Corporation :Copyright 2009 National Warranty Corporation National Warranty Corporation NWC EXTENDED SERVICE CONTRACT KNOWLEDGE ASSESSMENT TEST


NWC EXTENDED SERVICE CONTRACT KNOWLEDGE ASSESSMENT :Copyright 2009 National Warranty Corporation NWC EXTENDED SERVICE CONTRACT KNOWLEDGE ASSESSMENT When selling a Powertrain, or Powertrain plus policy with NWC it is unnecessary to follow the class guide. a. True b. False When selling a Powertrain or Powertrain plus policy with NWC there is no such thing as an ineligible vehicle as long as the vehicle fits the age and mileage guidelines. a. True b. False What is the surcharge for adding additional coverage that includes repair or replacement of “wear and tear” items such as belts and hoses? a. $50 b. $75 c. $100 d. none of the above It is necessary to have the original in-service date when selling an ESC on a vehicle still within factory warranty time and mileage coverage. a. True b. False What is the maximum term of coverage available on a vehicle used in business as a taxicab? a. 4yr/60k miles b. 2yr/24k miles c. 7yr/100k miles d. None of the above


NWC EXTENDED SERVICE CONTRACT KNOWLEDGE ASSESSMENT :Copyright 2009 National Warranty Corporation NWC EXTENDED SERVICE CONTRACT KNOWLEDGE ASSESSMENT What does “disappearing deductible” mean? a. The first deductible is waived b. A deductible at the selling dealer is zero, but anywhere else is $100 c. The standard deductible is $200, then zero on the second and following claims d. You will not be charged a deductible if you have the repairs made at the dealership where the service contract was originally purchased. The “disappearing deductible” option is only available on vehicles qualified for new car coverage. a. True b. False On used car coverage vehicles with over ______ miles no longer qualify for Premium Plus? a.40,000 b. 60,000 c. 80,000 d. 100,000 For vehicles with between 80,001 and 100,000 miles at purchase what is the maximum term and mileage coverage for Premium or Super Tech protection? a.1yr/12k b. 2yr/24k c. 3yr/36k d. 4yr/48k What is the maximum term and mileage coverage for a one year old vehicle with 17,000 miles on it at time of purchase? a.6yr/75,000 b. 5 yr/100,000 c. 5 yr/75,000 d. 6yr/100,000


NWC EXTENDED SERVICE CONTRACT KNOWLEDGE ASSESSMENT :Copyright 2009 National Warranty Corporation NWC EXTENDED SERVICE CONTRACT KNOWLEDGE ASSESSMENT The administrative fee for a customer to transfer the service contract to another owner is: a.$50 b. $75 c. $100 d. NWC service contract is not transferable What is the maximum number of days within the change of ownership for a transfer? a.10 b.12 c.14 d.30 NWC rental reimbursement is: a. Up to a max of $25 per day with a maximum of 6 days or $150 for each repair visit b. Up to a daily max of $35 and up to a max of $200 for each repair visit c. Up to a max of $20 for every 8 hours of labor and up to a max of $125 for each repair visit d. Up to a daily max of $25 only if the vehicle is kept overnight In the event of a covered mechanical breakdown the maximum NWC towing reimbursement is: a.$40 b.$50 c.$2 per mile up to a limit of $60 d. NWC service contract does not offer towing reimbursement The “Administrator” of the NWC service contract is: a. The selling dealer b. American Bankers c. The vehicle’s primary buyer d. National Warranty Corporation


NWC EXTENDED SERVICE CONTRACT KNOWLEDGE ASSESSMENT :Copyright 2009 National Warranty Corporation NWC EXTENDED SERVICE CONTRACT KNOWLEDGE ASSESSMENT Which of the following is not required to be listed on the page 1 of the customer’s VSC Information Schedule? a. Lienholder name and address (if applicable) b. Coverage Plan and Deductible choice c. Vehicle’s original in-service date d. Current odometer mileage “Wear and Tear” is defined as a component: a. that is within .01” of an inch of breakage or total failure b. that has not failed but failure is clearly imminent within 3000 miles c. that has not failed but does not meet the manufacturer’s tolerances or specifications d. that demonstrates gradual degradation beyond the manufacturer’s intended usage The NWC service contract does not cover a breakdown caused by a condition known to the purchaser before, or which existed prior to the Effective Date. a. True b. False


NWC EXTENDED SERVICE CONTRACT KNOWLEDGE ASSESSMENT :Copyright 2009 National Warranty Corporation NWC EXTENDED SERVICE CONTRACT KNOWLEDGE ASSESSMENT Page 1 of the NWC Service Contract Information Schedule requires customers’ initials in the following areas: a. Coverages Purchased and Disclosures b. Contract Charge and Disclosures c. Coverages Purchased and lienholder information d. Odometer Statement and Disclosures NWC service contract cancellations, past 30 days, entitle customers to a refund of the purchase price minus the earned charges. The earned charges shall be computed: a. rule of 78s based on the greater of days elapsed or miles driven b. pro-rata based on the miles driven relative to the contract coverage mileage c. pro-rata based on the days elapsed relative to the contract coverage term d. pro-rata based on the greater of the days elapsed or miles driven compared to the total time or the miles purchased.


Questions :Copyright 2009 National Warranty Corporation Questions RANDY McPHERSON JEFF PITTENGER800-547-4710 - Office503-887-2847 - Cellrandym@nwc.biz jeffp@nwc.biz


Thank You :Copyright 2009 National Warranty Corporation Thank You National Warranty Corporation