Customers with prepaid vehicle maintenance packages double

Customers with prepaid vehicle maintenance packages double

The percentage of vehicle owners with complimentary or prepaid maintenance packages has more than doubled in the past five years, benefitting dealers and manufacturers through higher loyalty and repurchase rates, according to the recently released J.D. Power 2014 Customer Service Index Study.

Additionally, the study found that 68 percent of luxury vehicle owners and 46 percent of mass market brand owners said their vehicle was covered under a complimentary or prepaid package in the first year, compared with 35 percent of luxury and 15 percent of mass market brand owners in 2009. J.D. Power reports that 72 percent of owners with a complimentary or prepaid maintenance package bought the same vehicle on their next purchase, compared with 62 percent of those without the package.

–Maintenance packages whether theyêre complimentary or paid for by owners create a long-term relationship between the customer and dealership, which, when coupled with satisfying service experiences during that period, can have a very positive impact on loyalty rates,” said Chris Sutton, senior director of the U.S. Automotive Retail Practice at J.D. Power.

Cadillac ranks highest in satisfaction with dealer service among luxury brands. The rest of the top five luxury nameplates are Audi, Lexus, Infiniti and Lincoln. Buick is the highest among mass market brands, followed by Volkswagen, GMC, Mini and Chevrolet.

The survey also found that owners use ratings and review sites to select a dealer for service 17 percent of the time and social networking sites 15 percent of the time. Owners of traditional U.S. brand vehicles use social networking sites at a much higher rate, while owners of overseas-based brands prefer ratings and review sites.