The Personal Service Plan from The Warranty Group (TWG) can generate a monthly quote for customers based on the length of time a customer intends to keep the vehicle.
The plan is based on HPI/CAP servicing data which can accommodate any model and manufacturer. Dealers can set their own pricing for servicing specifics like labour rates, oil prices and even parts discounts.
TWG charges an initial administration fee which ranges between £16 and £18 (excluding VAT). It then charges a subsequent fee for each additional direct debit made by the customer. TWG said there is no charge levied directly to the dealership as the fee is taken from the customer’s payments.
Ian Simpson, sales and marketing director for TWG, said: “It minimises the chances of losing servicing and therefore other aftersales business to fast-fits or independent garages, massively strengthening their link to the customer.
“Also, because the dealer holds the servicing budget, it improves their cashflow and brings benefits such as avoiding credit card charges on payments.”
TWG is already in talks with a number of volume manufacturers about adopting the new system, but Simpson could not disclose which ones.