Producing outstanding vehicles is at the heart of the strong brand loyalty that Honda enjoys among its customers. Honda Care extended warranties build on that relationship. For Peter Maytin, general manager of Braman Honda of Palm Beach in Greenacres, Florida, and Finance Manager Steve Sagas, that loyalty was a major factor in the dealership’s decision to offer new supplemental Honda Care protection products.
Braman Honda of Palm Beach had previously featured similar products offered by other third-party vendors, but the opportunity to bring them under the Honda umbrella made perfect sense, given Honda’s excellent reputation for customer service. That decision has proved very popular among customers.
“We’re definitely selling more product,” says Sagas. “I know we’re selling more paintless dent repairs, more roadside assistance and road hazard protections. So it definitely has helped out.”
While many dealers offer third-party supplemental warranty programs, Maytin says the scope of Honda’s dealership network provides added confidence in the Honda Care plans. “You can take this car pretty much anywhere you want in the United States, and you’re basically covered because you have a Honda product or service agreement,” he says. “That’s going to give them a little more peace of mind.”
Maytin, who took the reins at Braman Honda of Palm Beach shortly after the dealership began offering the additional Honda Care plans, says the new line is attractive to customers whether they’re buying or leasing. “Essentially, customers want to protect their investment,” he says. “That makes extended warranties attractive. Ensuring that any repair work is done by Honda-certified technicians and backed by a Honda-branded plan takes that sense of brand loyalty to the next level.”
“We want to be able to have a Hondabranded product that we could offer our customers that offers the same, if not a higher, level of coverage as the competition,” says Tamica Cochran, AHFC dealer relations manager. “The Honda brand carries weight. That’s what the customer is here to purchase,” she says. “So any Honda product that we can offer is only going to strengthen their dealership, our business relationship and the brand.”
According to Cochran, Honda dealerships can apply Honda Care to virtually any make or model they sell: new, certified pre-owned or used.* They also have the flexibility to package these supplemental products or sell them individually. At Braman Honda of Palm Beach, customers can select from a menu of protection products, says Maytin.
The new products allow customers to select the level of coverage to suit their needs. For example, customers who plan to keep their vehicles for the long haul may want a vehicle service contract (VSC) plus supplemental products. Conversely, lease customers may forgo VSCs and opt instead for term coverage that covers wear-and-tear items only for the years they plan to drive the vehicle before upgrading.
“I always put myself in consumers’ shoes,” Maytin says. “When someone walks into the dealership, now the product—the protection that they’re getting—gives clients a little more ease to know that they are purchasing a quality product. It’s not an aftermarket company that is handling your protection product. It is an established and well-known brand that the client has a tangible relationship with.”
Furthermore, Honda Care products are designed to bolster Honda service departments. “These products are only accepted at other Honda dealerships, so it’s hopefully going to drive the service back through their own service bays—or another Honda dealer’s service bay,” says Cochran. “So they should see an increase in that service retention. If you couple these products with our Honda Care Vehicle Service Contracts, all of this is designed to increase that lifecycle of the customer with the dealer.”
Even if service work is performed at another Honda dealer, Maytin has an “all boats rise with the tide” perspective, knowing that every dealership, small or large, benefits from programs that enhance the entire brand. “As long as we’re all more embedded with American Honda Finance Corporation collectively, it’s going to make the finance institution that much stronger,” he says.
“We’re here to sell Honda vehicles,” he says. “We use Honda Financial Services for just about everything. We’re a hundred percent in. It’s a partnership through and through.”
The switch to the new Honda Care products was seamless, Sagas says, and the training was efficient and straightforward. “The transition was very easy for us,” he says. “There wasn’t much training needed, but it was there if we needed it.” And this, Maytin and Sagas agree, has resulted in a true win-win for Braman Honda of Palm Beach and its customers.
