Please reach us at Brock@DealersPPM.com if you cannot find an answer to your question.
Prepaid Maintenance is a non-cancellable product once purchased. It is not insurance.
Typically, dealerships recognize the income when the services are performed. Your accounting firm and our reinsurance department can help answer your questions.
Spoilage refers to unused services when the contract term expires.
Unlike OEM programs where the OEM keeps all the spoilage, with Dealer's Choice Prepaid Maintenance, the Dealer keeps and retains all Spoilage Income as our program is Dealer-Owned.
Spoilage occurs for a number of reasons.
1. The Customer no longer owns the vehicle,
2. The Customer has moved away from your trade area,
3. The Customer did not utilize the services.
Typically, dealerships recognize the income on spoilage at the Expiration Date of the Prepaid Maintenance Contract.
Best Practice is to pay finance people Flat-Fee Compensation per PPM Contract Sold based upon Penetration of the PPM product. We have examples to share with you.
You do! The Dealer sets the Retail Pricing and Discounts. We recommend reviewing the pricing annually and updating the pricing as needed.
You should be able to add Prepaid Maintenance into your re-insurance plan. If not, we can help with establishing a new re-insurance plan for you.
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