Maintenance Plan Financing

September 29, 2021

Automotive Maintenance Plan Financing

Along with helping a customer find a reliable car with an excellent warranty, you may want to offer a prepaid maintenance plan. Dealership maintenance plans allow a customer to get scheduled service on their vehicle without shelling out any extra cash. 

You can determine what services your dealership will provide customers, such as brake inspections, battery checks and oil changes. They will feel supported and valued by your car dealership due to the continued vehicle maintenance and the ongoing relationship you will develop as a result.

What Is an Automotive Maintenance Plan?

Also known as a car maintenance plan or a prepaid vehicle maintenance plan, an automotive maintenance plan is ideal for part replacements and repairs on a car. While a warranty covers the replacement and repair of defective parts, a car maintenance plan covers the vehicle's regularly scheduled maintenance outlined in the owner's manual and excludes coverage for components that wear out, such as: 


  • Belts
  • Battery 
  • Clutch
  • Rotors
  • Hoses
  • Brake pads 
  • Windshield wipers


Some car maintenance plans also provide unlimited oil changes. When your dealership offers a car maintenance plan, you'll ensure the customer will return only to your dealership for service. In most cases, these plans have longer coverage, as wear and tear can accumulate on a vehicle over time. 

Benefits of Car Maintenance Plans

Maintenance is a significant expense of vehicle ownership, regardless of whether a customer buys a used or new car. After recognizing this pain point, dealerships have begun offering maintenance plans. 

Benefits of Car Maintenance Plans for Customers

Car maintenance plans can offer your customers many benefits.


  • Predictability: Automotive maintenance plans lock in the cost of scheduled vehicle services for a specific number of years or miles after the purchase date. That gives your customers predictability, as they will not need to worry about price increases or paying extra for routine service. With set prices, your customers can easily incorporate vehicle service into their household budgets.
  • No delays: Customers won't have to delay necessary maintenance because of financial constraints. Tire rotations and oil changes will be as simple as setting appointments and driving to your dealership. 
  • Discounts: Most dealerships offer discounts on their services when customers buy a prepaid maintenance plan. These make the maintenance plan more appealing to customers when compared to the existing service prices. 
  • Simplification: A car maintenance plan can be an excellent option for buyers who want to simplify their lives. With this plan, your customers don't have to think about paying for their maintenance, where to get their vehicle serviced or when. Instead, you will notify your customers when they need to have service performed, so they don't have to make those decisions or keep track of the schedule themselves.
  • Free perks: You may also want to offer your customers free perks, like oil changes, as an incentive to purchase a plan. You can promote these as often as you like. 


Benefits of Car Maintenance Plans for Dealerships




Car maintenance plans can also offer dealerships numerous advantages.


  • Additional revenue stream: Since vehicle maintenance is an unavoidable aspect of vehicle ownership, dealerships can build a revenue stream off their service centers by offering prepaid maintenance plans. For many dealerships, the service department is even more profitable than car sales. Your dealership can offer your customers a fair deal, ensuring they return to purchase their next vehicle, while making more money through a steady income stream. 
  • Modern cars need little maintenance: Though modern cars need more detailed inspections and extensive service at higher mileages, they also rarely require more than tire rotations and oil changes. The service you will need to provide for many of your customers is minimal, as you also won't need to be covering wear-and-tear items. 
  • Sole vehicle service provider: A car maintenance plan usually includes specific limitations. In most cases, your dealership is the only one that can perform a prepaid service. As a result, you know your customers won't be going elsewhere for vehicle maintenance. 


Financing Car Maintenance Plans

For many customers, cost is the most significant drawback of a prepaid maintenance plan. As such, more affordable options for payment terms can make a car maintenance plan more appealing. 

Financing Options

You can roll the cost of an automotive maintenance plan into the amount your customer is financing. For many buyers, the option to include the cost of a car maintenance plan in their monthly payment is appealing, as it spreads the expense of fixed maintenance across the duration of their auto loan. Of course, it also means the buyer will be paying interest on their maintenance costs.

Your dealership should be transparent about everything the car maintenance plan includes. Your customers won't want to purchase a vehicle and then deal with unexpected costs, so making the plan transferable or part of the car payment can be excellent financing options. 

Offering a Good Value

Ensure your prepaid car maintenance plan offers your customers a fair value. Your customer service and the quality of the repairs are crucial to ensuring customer satisfaction. Your customers will expect top-notch service that aligns with their plan's cost. 

Your service technicians should understand what the car maintenance plans include and what each vehicle needs when your customers bring them in for service. Whether a car requires repairs on the brakes or an oil change, your techs should have access to the software system that tracks what the plan includes. Technicians should also not rush repairs and perform every maintenance service thoroughly.

Become a Line 5 Partner Today!

At Line 5, our financing option can offer your customers vehicle protection plans that provide the value they want and deliver the added sales your dealership will love. When you sign up, you are also getting access to a collections department that can keep your customers in the deal. We provide financing for F&I products you sell when other lenders say no, and you can enjoy the following benefits when you choose us:

  • Guaranteed approvals
  • Zero money down 
  • Funding within 48 hours
  • Dealership dashboard

After the initial sale or when your customer has a cash deal, you can turn to us. We approve everyone, regardless of credit rating, and charge budget-friendly rates. When you want a flexible, affordable payment option to sell back-end products, sign up to become a partner with us at Line 5.