Service departments are finally receiving credit for contributing to the growth and profit of dealerships and establishing a prepaid maintenance program (PMP) is one of their best kept secrets to overall success. It is well established that most PPM is being sold in the F & I department. But is that the only place they[…]
Fixed monthly costs for regular expenses make it possible to budget with less concern about unexpected charges you can’t afford. Auto dealers have quickly caught on, as they’ve adopted prepaid maintenance plans, making services and sales worth everyone’s while. As ridesharing and food delivery becomes more and more popular, there is one question posed – do ridesharing and[…]
Everyone appreciates getting more value out of an investment than they initially put in. It’s not very often, however, that both the dealer and the customer feel they’ve profited as they see fit when the customer leaves the dealership. One party usually feels that they could have – or should have – gotten “more”. Imagine[…]
Extended warranties and prepaid maintenance programs bring in immense revenue to dealerships. But many consumers aren’t aware that they can purchase extended warranties and prepaid maintenance plans after they’ve left the lot. Customers with newer cars will likely receive their dealer’s service coupon emails, thinking they won’t be requiring them. However, as their vehicles approaches[…]
When offering an automotive prepaid maintenance program (PPM) to customers, what is the dealership hoping to get in return? Certainly, one answer is to gain long term customer affinity for the dealership. While that affinity is profitable, experience shows that customers who use a dealer’s repair facilities are much more likely to purchase a subsequent[…]
One of the advantages of a Dealer Prepaid Maintenance Program (PPM) is that they span the generational gaps and appeals most anyone. Regardless of which generation consumers happen to be in, none of them like surprise repairs, or other expenses. That is why dealers focus on payments – and not price – when selling vehicles.[…]
When we hear the term “Fixed Ops” we think of something that cannot be altered. The concept of the fixed ops variable is that it depends on the result of the various functions within a dealership, with the common goal of as car sales rise, so will servicerevenue. However, did you know your service revenue[…]
Prepaid Maintenance Plans (PPMs) have been used as an auto dealer customer retention tool because paying up front for services is a guaranteed way to get customers back into the service lane. However, the pricing and structure of many PPMs administered by third parties have not made the program very profitable for the dealership, and more importantly,[…]
With the major shift into leasing certified pre-owned vehicles by several OEMs and major financial institutions, many dealers have predicted a decline in service contract sales. However, according to an article in Automotive News, they would be wrong to do so. Due to an influx of low-mileage pre-owned vehicles, captive finance companies and others have started to[…]
Many dealerships price prepaid maintenance programs (PMPs) high enough to shatter success from the start. Thinking that the real benefit comes from profit built into the plan along with forfeiture, they create a price point that’s prohibitive. While some new buyers will take the bait, the typical consumer, when asked to pay $895 for three years of[…]