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April 3, 2020

Additional Revenue Streams For Your Service Department


At the moment, there are a lot of dealerships facing the temporary closure of their sales departments. For many, that means that service departments are more important than ever. An already essential part of the business has become a lifeline.  That means dealers need to focus even more on ways to maximize the value of their service departments.

Some dealerships have thought creatively about their service center and how they can innovate to provide customers what they need while also increasing revenue for the dealership. 

Here are three examples I've recently heard from dealers in our network:

  1. Service Contracts. A service professional can broach the topic and connect the customer to an F&I professional who can help the customer learn more about their options. Not only does it help the dealership continue selling a profitable product while the show room is closed, but it's also introducing it at a time when a customer is likely to be receptive. 
  2. Financing Service. What's another option that customers would find helpful? Offering customers the option of financing service fees so that they don't have to pay a large fee all at once, upfront. This can give customers peace of mind, while also allowing the dealership to earn extra income.
  3. Digital Insurance. What if your customer checked their auto insurance at the dealership and discovered they could lower their monthly payment by $60 per month? Using a digital insurance platform can help customers increase their monthly budget and better afford the service they are receiving. The right program can also offer the dealership ways to earn additional revenue for themselves and their employees.

Of course, the key to all of this is to remain empathetic with the customer.

Don't sell them what they don't need, but do listen to their concerns and offer them options when appropriate.

Tag(s): Insights

Mike Kenton

As VP of Dealer Solutions, Michael Kenton is responsible for driving sales and business development for DealerPolicy, with a focus on growing the company’s dealership footprint. Prior to joining DealerPolicy, Michael was a member of senior management at Enterprise Holdings, leading 5 brands within one of the company’s...

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