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PrePaid Maintenance in the Age of Ride-Sharing

Younger generations prefer fixed monthly costs for expenses that include things such as vehicle maintenance.
hey can then budget and have less concerns about encountering a repair bill they can’t afford. But how do ride-sharing services fit into the PrePaid Maintenance equation?  


Ride-sharing  even as a secondary source of income  is skyrocketing, with many part-time Uber and Lyft drivers joining the ranks to add a little money to their bottom line. This brings opportunities aplenty to provide a valuable service, while also adding revenue dollars for your dealership. 


There are many standard pitches for PrePaid Maintenance such as fixed ownership costs, security and peace of mind. Well, it might be time to add another question when discussing PrePaid Maintenance with customers in F&I. Try asking: 


Do you plan to use this vehicle to earn extra money as an Uber or Lyft driver? 


Ride-share drivers put many more miles on their vehicles than regular drivers. I’ve met several Uber and Lyft drivers in my travels. Some tell me they only do it for extra income, while others do it full-time. Who knows what, if anything, they told the dealership when they purchased the vehicle?  


Either way, for those customers planning to make some income driving, PrePaid Maintenance becomes very appealing. Time off the road means money out of their pocket. So, subsidizing maintenance with their vehicle loan means operating without any worries about an expensive repair bill threatening their livelihoods. 


As PrePaid Maintenance covers just regular maintenance, if your dealership locks the customer into a PPM, you have the first chance to gain additional business that comes with normal wear and tear. This occurs much faster with these Uber and Lyft drivers. New tires, brake pads, etc.; the list goes on. For these drivers, PrePaid Maintenance should be a no-brainer for both the customer and the dealership. The customer doesn’t have time to go shop prices at 10 different competitors; they need to get the vehicle repaired and back on the road so that they can continue making money.  


Ride-sharing is exploding and these drivers must provide their own vehicles. Start including questions in your F&I process to establish if the customer is planning to, or may consider becoming an Uber or Lyft driver in the future. You may see some lightbulbs going off and find them more receptive to your PrePaid Maintenance offer.  

Views: 183

Tags: automotive, best, customer, dealership, fixed, general, leadership, loyalty, lyft, management, More…ops, practices, prepaid, repair, retention, ride, service, share, uber


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Comment by Joe Webb on September 25, 2017 at 2:19pm

Smart question, Mike. I like it. I'll definitely help introduce this mindset to a few of our customers in metro areas where ride-sharing (and buying for ride-sharing) is more prevalent.

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