7 Reasons an Auto Dealership Should Own its Vehicle Maintenance Plan
Manufacturer Vs. Dealer-Owned
Rent or own? It’s a question many prospective homeowners ponder, seeking to address one of the most significant financial decisions they can make.
A similar question, though, can be applied to your auto dealership. Should your dealership utilize a manufacturer’s vehicle maintenance program or pursue ownership of your own such plan?
It’s a potential make-or-break decision that should not be taken lightly. After all, incorporating the right complimentary maintenance program for your dealership could mean the difference between enduring one-time car-buyers and achieving a customer retention strategy that encourages service loyalty and cultivates repurchase intentions.
While merits exist on both sides of this “rent vs. own” debate, there’s a mountain of evidence indicating it’s worthwhile for your dealership to consider ownership. Here are 7reasons an auto dealership should own its vehicle maintenance plan:
1. Promote Your Dealership
A successful dealer-owned maintenance plan markets your personal brand —not just that of your manufacturers. All of your marketing materials point directly to your dealership, driving customers back for service. When customers can only service at your dealership or dealer group, your brand becomes aligned with the customizable service offerings your valued customer base needs.
2. Control Your Own Destiny
It’s nice to be in control. When you own your vehicle maintenance plan, you can limit service retention to your specific dealership or dealer group. Furthermore, you reserve the ability to adjust your maintenance plan offerings on the fly should the needs of your dealership and its customers dictate. Why let anyone else but you control your dealership’s measures for success?
3. Customization to Meet Your Needs
Own your vehicle maintenance plan and you also own the right to tailor your approach. When you utilize a maintenance plan from Performance Administration Corp., all details are at the direction of your dealership, all customization options are on the table. Mix and match various oil types, schedule visits, maintenance intervals and more. Create multiple plans and compare different pricing options until you arrive at a fit that’s perfectly catered to your dealership.
4. Synergy with Service Management Software
Even after Performance Administration has implemented your dealer-owned prepaid maintenance plan designed to improve your customer retention rate, its work with you is not yet complete. Pairing your program with start-of-the-art service management software enables your dealership to track longterm service usage and determine if, in fact, your maintenance plan is producing the desired number of return buyers.
5. No Need to Share
You were taught to share at a young age. While you should continue to share your toys and personal items freely with children and neighbors, ownership of your vehicle maintenance plan enables you to eliminate unnecessary revenue-sharing. With great privilege comes great responsibility, and your dealership should reap the financial benefits associated with your dealer-owned maintenance program. Accordingly, your dealership now receives 100 percent of the remaining money for unused maintenance.
6. Built-In Competitive Advantage
The modern car-buyer has numerous options at his or her disposal. Yet by owning your vehicle maintenance plan, your dealership can set itself apart from the competition. Your combination of marketing power, customization ability, and integration with retention technology places your dealership on a pedestal that few others can match. When you dictate everything from your coverage to your reimbursement rates, you can promote your brand with extended maintenance or additional services available exclusively at your dealership.
7. Best of Both Worlds
Already have a manufacturer maintenance program? No problem. The ideal dealer-owned plan —such as those offered by Performance Administration— affords you the option of pairing additional or extended services with an existing manufacturer maintenance program. This integrated approach combines the stability of your current program with the control and flexibility of a dealer-owned strategy. Indeed, it’s a win-win situation for your dealership.
Wondering how a Complimentary Maintenance Program makes you money? Register for an upcoming webinar and we’ll show you three ways to fund your future.