Extended Service Warranty Opportunities

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Sept. 23, 2019—RoadStar Services, a vehicle service contract company, recently announced its official launch

The company aims to be an industry thought leader and consumer advocate, Roadstar board member Jonathan Sasse explains when asked about the business that aims to provide transparent extended service contracts. 

All RoadStar Services contracts feature $0 deductible, a 30-day money-back guarantee, and allow customers to have their vehicle serviced at their preferred auto shop.

Sasse shares with Ratchet+Wrench what the benefits of RoadStar are for shop owners. 

Instant Payback 

When a customer comes in with an extended service warranty contract through RoadStar, they give the necessary information to the shop, which includes a number for the shop to call when the repairs are finished. Once the shop determines the repairs needed, the technician or service advisor can call RoadStar to see if the repairs are covered or not. If they are, they can call as soon as the repairs are complete and be read a credit card number that will instantly pay them for their work, explains Sasse. 

Unbiased Opportunity 

RoadStar allows customers to pick their preferred shop. Any shop that is certified will be covered under the service contract. 

“We try to be transparent about service contracts, and we look for that with service shops,” Sasse says. 

True Support 

Many extended service contracts are confusing, Sasse says. RoadStar has a number that shops can call any time of the day to get support if they’re having trouble understanding a warranty and whether or not something is covered. 

“They can call us and we can walk them through the process,” Sasse says.     

Customer Retention 

Most customers that run their factory warranty out go looking for service elsewhere, making them prime targets for auto repair shops. Since these customers were previously under warranty, attracting them to your shop with an extended service warranty is a way to bring a new customer in and retain them, explains Sasse. In fact, a recent survey from RoadStar found that nearly 64 percent of respondents would wither consider purchasing an extended vehicle contract or already own one. 

Customers that are looking for a new shop through RoadStar are able to use any shop that is certified. So, if your shop has good reviews, it’s likely that these customers may come to you. Then, once the customer has a positive experience, they’ll be incentivized to keep coming back to your shop to use their warranty, Sasse says. 

Although RoadStar does not have recommended shops yet, that is something that the company is looking into for the future, Sasse says, which could present an additional opportunity to attract customers. 


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