How To Sell More Extended Warranties And Value-Added Products In 2025

👉 What are we talking about?
👉 How to sell more of these products
👉 The importance of not being pushy
👉 Final thoughts

Let’s be honest, the margins on moving metal aren’t what they used to be.

Between tight manufacturer pricing, rising costs, and more customers shopping around online, most dealerships are fighting harder than ever to protect their profit per unit. That’s where extended warranties and value-added products (VAPs) come into play. When sold well, they’re not just a nice add-on; they can be the difference between a decent deal and a great one.

But selling these products takes more than a mention in the handover. Here’s how smart dealers are making extended warranties, GAP insurance, and service plans part of the bigger customer value story… and how you can, too.

First, What Exactly Are We Talking About?

Here’s a quick refresher on the VAPs that are commonly offered, and which ones are making the most impact on your bottom line:

• Extended Warranties: Extra peace of mind beyond the manufacturer's warranty. Big appeal for used car buyers or customers financing over longer terms.
• GAP Insurance: Covers the shortfall if the car’s written off or stolen and insurance doesn’t match the finance balance.
• Service Plans / Prepaid Maintenance: Customers spread the cost of servicing across the term — no big annual bills.
• Tyre & Alloy Protection: Especially appealing for drivers in urban or rural areas dealing with kerbs or potholes.
• Paint & Fabric Protection: Think showroom shine, long after delivery day.
• Key Insurance: With some key fobs costing £400+, this one almost sells itself.

These aren’t hard sells when you position them well — they’re about confidence, convenience, and cost control. Things every buyer wants.

So, How Do You Actually Sell More of Them?

1. Frame Them as Part of the Finance Conversation — Not an Afterthought

One of the biggest shifts we’re seeing is dealers building these products into the finance structure itself. It’s simple math: spreading the cost of an extended warranty over a 36 or 48-month finance term makes it more palatable and more likely to convert.

👉 “That extended warranty works out at just £12 a month, it’ll cover you for repairs right through the agreement.”

When it’s presented like that, it feels like part of the package, not a bolt-on.

Top tip: Check with your lender which products can be included in the customer’s finance agreement. It keeps the monthly number neat and tidy, and that’s what matters to buyers.

2. Start Talking About VAPs Early and Often

If your F&I manager is the first person to mention an extended warranty, you’ve probably left it too late. Plant the seed during the product walkaround, during the test drive, or when the customer asks, “What happens if something goes wrong?”

Buyers are far more receptive to VAPs when they’ve had time to consider the value before they feel like they’re being sold to.

3. Train Your Team to Focus on Benefits, Not Features

Nobody buys a tyre policy because it includes “two replacements per year.” They buy it because they’ve had a blowout before and know how much hassle and cost it caused.

Make sure your team knows how to bring these products to life:

❌ “This policy covers kerb damage.”
✅ “This means if you scratch the alloys on a tight corner or hit a pothole, you’re not shelling out £300 every time.”

The more real-world, the better.

4. Package Products for Simplicity and Value

People hate choices. Especially when they’re unsure what they need. Offering too many separate VAPs can overwhelm customers.

Instead, consider bundling products under names like:

• Essentials Package: Warranty + Key Cover + Paint Protection
• Urban Driver Pack: Tyre Protection + GAP + Service Plan

Give them one monthly figure. Make the value obvious.

5. Give Your Team Confidence (and Incentives) to Sell

Let’s not forget: your team needs to believe in these products, too. If they think extended warranties are a “hard sell,” that’s how they’ll treat them.

Consider:

• Regular training and refresher sessions
• Clear examples of customer success stories
• Small incentives or recognition for VAP sales success

The more confident your team is, the more naturally these products become part of the conversation.

One More Thing: Don’t Be Pushy

We’ve all seen it, the finance office experience that feels more like a timeshare pitch. Don’t be that dealership.

Position your VAPs as smart decisions for smart buyers, not must-haves with a timer running. Customers can tell the difference between genuine value and a desperate upsell, and they’ll remember how you made them feel long after the deal’s done.

Final Thoughts

Selling value-added products isn’t about squeezing more money out of every customer. It’s about making sure they’re protected, confident, and looked after, and in return, boosting your dealership’s profitability in a margin-tight world.

The key? Start early, make it relevant, and wrap it into the wider finance conversation.

Marsh Finance is proud to support dealers across the UK with flexible, transparent car finance, helping you deliver more value to your customers at every stage of the journey.

Want to explore how we can help? Let’s have a chat.