DALLAS -

EFG Companies this week launched Power x2, a powertrain protection vehicle service contract that can double the benefit of the manufacturer’s powertrain warranty.

Officials highlighted the new contract can deliver a vital dealer tool, proven by independent research, indicating that 90 percent of surveyed consumers say extended warranties impact their purchase. 

According to a recent EFG survey conducted by a third-party research firm, 62 percent of consumers said the manufacturer warranty significantly affects what make and model of vehicle they consider purchasing.  New vehicles are exactly the same within a manufacturer brand from one dealer lot to the next, including MSRP and the manufacturer warranty.

“This underscores the need for dealers to give consumers a value-driven reason to come to their retail location versus the competitor down the street or across town,” EFG officials said.

A recent statistic released by JD Power Automotive Internet Roundtable indicated that consumers now visit only 1.1 lots prior to purchasing a vehicle, down from three lots just five years ago, prompting EFG to point out, “this only amplifies the dealers’ need to deliver increased value to consumers.” 

As consumers continue to keep their vehicles longer than historical norms, EFG insisted ongoing maintenance costs are more top-of-mind when making purchasing decisions.

According to EFG’s study, 48 percent of respondents expect to replace their vehicles every four to seven years, which could extend their ownership beyond 100,000 miles.  By doubling the benefits of the manufacturer’s warranty, dealerships have the opportunity to use this trend to their advantage.

The study showed 72 percent of the survey respondents stated that they would go out of their way to purchase a vehicle from a dealership that is less convenient to them if that dealership doubled the benefits of their manufacturer’s powertrain warranty as a complimentary offering.

“In this highly competitive market, we know that dealerships need showroom traffic now, whether online or at their physical location, not six months to a year from now,” said John Pappanastos, president and chief executive officer of EFG Companies.

“Power x2 provides dealerships an immediate means of capturing market share based on current consumer wants and needs by moving past the price game to a more value-based conversation that motivates car shoppers to a transaction.”

Dealerships can also increase fee income by offering exclusionary coverage that wraps around Power x2 for a specified timeframe, which includes:

—Suspension
—Fuel system
—Electrical system
—Cooling system

“Power x2 gives dealers a valuable toolkit to address each customer’s specific need when it comes to taking care of their vehicle and protecting their pocketbook,” the company said.

“EFG also acts as a very strong extension of the dealer’s customer service through its in-house claims administration that operates according to above-industry standard target SLAs.  This translates to enhanced customer retention and loyalty,” officials went on to say.

For more information on EFG’s Power x2 powertrain warranty program, visit this website.