When presenting your members with MBP and GAP, you will hear “NO” as a response more often than “YES.” It’s important to not get discouraged by this, because it’s a normal reaction. Members don’t want to spend money unless it’s needed. We never assume the member has all the information to make an informed decision. It’s perfectly fine to ask the member why they are declining. Asking “why” as a follow up will give you the information necessary to address potential concerns.

The Most Common Concerns

Below is a list of the most common concerns you will hear from your members. Knowing the proper response to these will help your member make an informed decision. After all, we are here to advise them on important economic decisions and setting them up for a large out of pocket expense wouldn’t be financially responsible.

“It’s just too expensive”

You probably won’t hear this concern when presenting GAP because it’s less expensive. This concern is mainly for Mechanical Breakdown Protection. The member is correct with their concern, MBP is expensive and it’s ok to agree with them. The important item to address is the reason it’s expensive. Point out the costs that they will be responsible for if their car has a breakdown. The claims report will help you show how expensive car repairs can be.

“It’s a scam”

If the member is using this concern, then they probably know someone who fell victim to a scam. Assure them that your credit union only partners with companies that they can trust. Hand the member a copy of the claims report that proves claims are paid on a regular basis. Sometimes the claims report won’t show a lot of claims for certain vehicles. This doesn’t mean the vehicle won’t breakdown. Maybe it’s not a popular model, or it’s too new to have any claims yet.

“I’m still covered by my factory warranty”

If they are buying a new vehicle, then they are correct. However, the factory warranty is a simplified power train warranty that does not cover parts that are most likely to fail. The reason factory warranties are automatically given on new vehicles is because the manufacturer knows the odds of these parts failing is unusual. MBP covers almost all car parts that will eventually need replacing.

“I never buy those things”

Similar response to “no.” Ask the member why?

“I need to discuss this with my spouse first”

This is a great idea! Never discourage your member from discussing purchases with their spouse. However, your member can purchase MBP and cancel within 60 days for a full 100% refund. No questions asked. The reason we offer this is because members usually forget to come back and purchase, but they end up having a breakdown and think they are covered. If they still decline, make sure they sign the document stating their declination to prevent an awkward conversation in the future.

Your Members Trust You

Members use credit unions for their banking because it comes with a higher level of trust than most financial institutions and you all are informed financial experts. All of you have worked hard to build strong relationships with your members, don’t get discouraged or hesitate to offer financial advice that will protect them for many years in the future.