How valuable re prepaid and complimentary maintenance plans for dealers? There are a lot more on the market now, coming directly from OEMs and third-party vendors. So what do customers think about it? Well, it depends on who you ask.
Next-generation customers (under 35) are more likely to have a plan (31%) than those over 35 (18%) making these plans a powerful option for building customer loyalty with this generation, according to a DMEautomotive study. About 25% of US vehicle owners have an OEM prepaid or free service plan. About 35% of these customers don’t use the plan at all, and while 65% use plans for scheduled maintenance, only 25% use it for “some” and nine percent have not used it at all. These plans are driving long-term retention as 56% of consumers with a plan report they are likely to continue servicing their vehicle at their dealership after the plan’s expiration. It’s a great way to reach these young customers and retain their loyalty. Almost twice as many consumers who use these plans for all maintenance (versus some maintenance) report they’re “very likely” to continue servicing their vehicle with that dealer once the maintenance plan ends.