Prepaid auto maintenance programs are necessary tools for both the car buyer and your dealership. Not to be confused with auto service contracts, prepaid plans offer customers an up-front payment option for their regular scheduled maintenance.
How Prepaid Auto Maintenance Programs Benefit Your Client
According to J.D. Power and Associates, these car maintenance plans simplify the lives of the buyers. It takes the guess-work out of when their car will need service. Their vehicle is maintained according to the manufacturers’ recommended maintenance schedule and retains value.
But that is only one advantage. Here are a few other ways prepaid auto maintenance programs benefit your customers:
- No out-of-pocket costs at the time of service and maintenance: Because the customer has already paid for the maintenance package, they won’t need to reach for their wallets.
- Maintenance plans can be included in the financing: Regardless of whether the client is buying or leasing, the prepaid auto maintenance program can be wrapped up in the F&I process.
- Prepaying locks in the costs: The client pays at today’s price what they have serviced in the future. If the cost of an oil change increases the client isn’t charged more.
How Prepaid Auto Maintenance Programs Benefit Your Dealership
Prepaid auto maintenance plans benefit your dealership by providing a consistent flow of loyal customers. An article published by Forbes states that nearly 50% of a dealership’s revenue comes from the service department. By providing your clients with this prepayment option, you’re securing future business.
1. Increases Over-all Profitability
According to the NADA Guide, prepayment programs are income generators for dealerships. The F&I department, and the service department, benefit from this program because it ensures your customer is coming back—at the very least, for their scheduled maintenance.
2. Enhances Relationships for Repeat Business
Most prepaid auto maintenance programs offer regular maintenance at a discounted price. For that reason, customers will return for additional services not covered. It goes beyond loyalty. They trust you. Not only will your client return for services and repairs, according to industry experts at V12, but they are also twice as likely to return to your dealership to purchase their next car.
3. Provide Predictability
By offering a prepayment service program, you can control the traffic for your service department. Your clients get the benefit of regular maintenance to retain value and keep the car operating optimally. You receive the advantage of a busy service department.
Prepaid Auto Maintenance Programs from The ACE Group
At The ACE Group, we work with our dealership partners to develop a comprehensive prepaid maintenance program designed 100% around your dealership’s service and sales retention goals. We know that satisfied customers are return customers.
The ACE Group has auto maintenance programs that benefit both your client and your dealership. Call our office and talk to an experienced member of our team.