23 Jun How Prepaid Maintenance Keeps the Service Lanes Hoppin’
There are so many ancillary aftermarket products and services for your dealership to offer…warranties, tire & wheel, etch, etc. But there are some products that can have a positive effect even beyond the F&I office.
One of those products is the prepaid maintenance plan (PPM). Just under 20 years ago, OEM captives started offering PPM as a simple way to get buyers to come back to the dealership for their oil changes and tire rotations. With the explosion of quick lubes and drive-thru service facilities, dealerships needed to find something to help compete with simple services and keep the lanes full.
PPM has taken different forms now with some dealerships offering it as a preloaded benefit as a Line 1 add and others offering more robust long-term plans in the F&I office.
How does a preloaded PPM help your Service department?
- PPM goes a long way to tying your buyer to your store. If you offer a complimentary plan for one year that is branded to your dealership, they are more likely to come back AFTER the expiration for all of their service and repair needs.
Fun fact – 3 out of 5 buyers who get a PPM included with their purchase are more likely to come back for a renewal after the expiration.
- When PPM is branded as a ‘VIP’ program, buyers are more likely to refer their friends and family to come to the dealership for their own purchases. It’s an extra level of care that shows your store is invested in the car’s health and in helping to reduce repair costs for the buyers in the long run. A well-maintained car also helps satisfy manufacturers bumper-to-bumper and powertrain warranties.
- The Service Department wins all the way around…they get to establish a relationship with the buyer and they have easy upsell opportunities for repairs and preventative maintenance beyond just oil changes.
Dealerships do not have to relegate PPM to the F&I office. Consider adding it as a preload and if you charge, keep it a small amount. Your high-income buyers will appreciate the convenience PPM provides and your less affluent customers will appreciate the plan’s ability to help them save money from unexpected issues.
If you want to see how easy it is to add PPM as a preload for extra profits, higher CSI, and more referrals, click here to see how TruWarranty can help make that happen for your store.