F&I Training - How To Sell Powertrain Coverage In 2025

For many F&I managers, one of the most common hurdles in selling service contracts is overcoming the customer’s overconfidence in their manufacturer’s powertrain warranty. It's a scenario we've all faced: a customer declines a service contract, citing the extended coverage of their powertrain warranty as sufficient. However, as vehicle technology evolves, this mindset can leave customers vulnerable—and dealerships leaving money on the table.

Powertrain coverage, while important, is limited in scope. With modern vehicles increasingly reliant on advanced electronics, sensors, and software, focusing solely on internal lubricated components leaves significant gaps in protection. In this article, we’ll explore practical strategies from Gerry Gould, a leading F&I trainer, to transform how you sell powertrain coverage and boost your PVR in 2025.

Key Takeaways

1. Understand the limitations of powertrain coverage and clearly articulate this to customers.
2. Use props and analogies to make the technical details of coverage relatable and easy to understand.
3. Personalize your pitch using data like the customer’s driving habits and vehicle ownership duration.
4. Educate customers on vehicle “cycles” to emphasize the risks of modern technology and why comprehensive coverage is essential.

The Problem with Over-Reliance on Powertrain Coverage

What Customers Believe

Many customers mistakenly equate powertrain warranties with full protection for their vehicle. They rely on manufacturer marketing that emphasizes the “5 years or 60,000 miles” coverage, believing it covers anything major that might go wrong. Their logic is simple: if the engine or transmission is covered, why invest in additional protection?

The Reality of Powertrain Coverage

The truth is far less comforting. Powertrain warranties cover only internal lubricated components, such as the engine block and transmission gears—leaving out most of the technology that powers today’s vehicles. As Gerry Gould says, “90% of the vehicle is not powertrain; it’s everything else.” This includes sensors, modules, semiconductors, and electronic systems that are far more likely to fail and far more expensive to repair.

Why This Mindset Persists

The over-reliance on powertrain coverage persists for several reasons:

• Lack of understanding: Customers often don’t know what powertrain warranties include or exclude.
• Trust in manufacturers: They assume manufacturer warranties provide comprehensive protection.
• Resistance to additional costs: Many customers want to avoid perceived “unnecessary” expenses.

Proven Strategies to Sell Service Contracts

Step 1: Start with Customer Insights

The key to overcoming objections is personalizing the conversation. Begin by gathering critical details during the introduction:

• How many miles do they drive annually?
• How long do they plan to keep the vehicle?

For example, if a customer says they drive 18,000 miles a year and plan to keep their car for six years, you can highlight that their factory warranty will expire within two years—leaving them unprotected for the remaining four years.

Step 2: Illustrate the Limits of Powertrain Coverage

Visual aids are a powerful tool to help customers grasp abstract concepts. Gerry Gould recommends using simple props like:

• A toy car to represent the powertrain.
• A light bulb to demonstrate how modern vehicles rely on replacement, not repair.

Place these props on your desk and show the customer exactly what powertrain coverage includes. Emphasize how minimal the coverage is compared to the technology and components not covered.

Step 3: Explain Vehicle “Cycles”

Modern vehicles don’t just wear down from mileage; they experience wear-and-tear through operational cycles:

• Every time the customer unlocks the car with a key fob.
• Every time they press the start button.
• Every time they stop and start at a traffic light.

Each of these cycles involves hundreds of lines of code, semiconductors, and sensors—any of which could fail at any time. Compare this to a washing machine: whether it’s used frequently or infrequently, the number of cycles determines its longevity.

Step 4: Shift the Customer’s Focus

Once you’ve established the limitations of powertrain coverage, redirect the customer’s attention to the risks of owning an uncovered vehicle. Highlight the high cost of repairing non-powertrain components like sensors and modules, which can easily run into thousands of dollars.

For example:
“Mr. Jones, the manufacturer stands behind the powertrain because it’s unlikely to fail. But what happens when a sensor or semiconductor fails? Wouldn’t you rather have peace of mind knowing it’s covered?”

Props and Techniques That Work

Why Props Are Powerful

Props make complex concepts tangible and relatable. Customers are far more likely to remember a visual demonstration than a verbal explanation.

Example:

• Toy cars and light bulbs: Simple, clear illustrations of powertrain limitations.
• Cell phone vs. stapler analogy: Ask the customer which is more likely to break—a high-tech cell phone or a basic stapler? This drives home the point that modern vehicles are more like cell phones, filled with fragile technology.
• Comparison tools: Show a side-by-side breakdown of powertrain components versus other critical systems in the vehicle.

Customer Objections and How to Address Them

Objection 1: “I don’t drive that many miles.”

Response: “It’s not just about mileage anymore; it’s about cycles. Every start, stop, and unlock adds wear and tear on the vehicle’s electronics, which aren’t covered by powertrain warranties.”

Objection 2: “The manufacturer covers the powertrain for 5-10 years.”

Response: “That’s true, but powertrain coverage only includes internal lubricated components. What about the sensors, modules, and semiconductors that drive 90% of the car’s functionality?”

Objection 3: “I’ll take my chances.”

Response: “Modern vehicles are more like computers on wheels. The cost of repairing a failed module or sensor can easily exceed $2,000—wouldn’t you prefer peace of mind?”

FAQs

1. What is powertrain coverage, and what does it include?

Powertrain coverage includes internal lubricated components like the engine and transmission but excludes most electronic and high-tech components.

2. How do I personalize the sales pitch for each customer?

Gather details like annual mileage and ownership plans to tailor your pitch to their specific needs.

3. What props should I keep on hand to explain service contracts?

Toy cars, light bulbs, and visual diagrams are great tools to illustrate the limited scope of powertrain coverage.

4. What can dealerships expect from live training with Gerry Gould?

Hands-on techniques, role-playing scenarios, and actionable insights that lead to immediate results.

Conclusion

Overcoming the reliance on powertrain coverage is critical to increasing PVR and customer satisfaction in 2025. By using proven strategies like Gerry Gould’s prop-based approach, focusing on customer insights, and reframing the conversation around cycles, F&I managers can position service contracts as a must-have for modern vehicle ownership.

By the way, you’re invited to check out our world-class F&I training program where the average F&I Manager increases their PVR by over 30% in the first month. You’ll have access to 100+ hours of training videos personalized to your weaknesses. Plus, you get exclusive access to see Gerry Gould LIVE twice per month to ensure you continue to grow your skillset and income. Come join a community of the top F&I Managers in the country and the #1 F&I Training in the world. For $149 you can pay that off with one extra deal we’ll personally teach you in the first week of training.