Why Prepaid Maintenance Matters
- Higher return-to-service rates. Customers with prepaid maintenance return at predictable intervals, ensuring your service department remains top of mind for all their maintenance needs.
- Upsell opportunities. Every visit is a chance to recommend tires, fluids, brake work, seasonal inspections, or accessories.
- Front- and back-end profit. Dealers capture gross on the PPM sale while driving profitable labor and parts ROs on the back end.
- Customer lifetime value (CLV). Riders who consistently service at your dealership are more likely to purchase accessories, apparel, and ultimately their next unit from you.
Two Ways to Structure a Program
1. Vendor-Administered Programs
- The dealer enrolls the customer, and when service is performed, the vendor reimburses the store for covered items.
- Pros: Quick launch, low administrative burden, recognized national providers.
- Cons: Dealers don’t typically participate in underwriting profit.
2. Dealer-Funded or Reinsurance Models
- Dealers establish their own reinsurance company or participate in a dealer-owned structure. Claims are paid from this pool, and unused reserves become dealer profit.
- Pros: Larger long-term financial upside, alignment between service retention and dealer profit.
- Cons: More complex setup, requires compliance and proper administration.
Providers That Serve Powersports
While many PPM providers are automotive-centric, several offer dedicated solutions for motorcycles and powersports:
- EFG Companies – motorcycle prepaid maintenance offerings, integrated portals, and admin support.
- Protective Asset Protection – powersports-specific PPM products for F&I menus.
- Xtremegard (ServiceGuard Systems) – prepaid maintenance plans tailored for powersport units.
- Rider’s Advantage / Priority Maintenance – designed for motorcycles, ATVs, UTVs, snowmobiles, and PWC.
Creative Options to Maximize Impact
- Tiered plans – basic, plus, and premium levels tailored to mileage or usage hours.
- Seasonal inclusions – winter prep, spring tune-ups, or storage checks to fit local riding patterns.
- Accessory/apparel credits – offer a $25–$50 parts coupon with each PPM visit to add perceived value.
- Complimentary starter plans – include a 1–2 visit PPM package on new units and upsell to extended plans.
- Loyalty/trade-in bonuses – reward customers who complete every PPM visit with additional trade value or loyalty discounts.
- Digital integration – SMS reminders, online scheduling, and service drive prompts keep visits on track.
Keys to Execution
- Make PPM part of the ownership experience. Present it in F&I as a natural extension of the bike purchase, not an optional add-on.
- Train service advisors. They must understand how to engage PPM customers and identify upsell opportunities.
- Market the convenience. Stress inflation protection (“lock in today’s rates”) and ease of use.
- Measure outcomes. Track penetration, CP/RO, and retention rates of PPM customers vs. non-PPM customers.
Disclaimer
Herohub does not endorse or recommend any specific prepaid maintenance providers. Dealers are encouraged to perform their own due diligence, request blind references, and carefully evaluate program terms before making a decision.
The Bottom Line
Prepaid maintenance isn’t just another line on the F&I menu — it’s a strategy to create predictable service traffic, grow customer-pay opportunities, and build long-term customer loyalty. By designing a program that fits your customers’ riding habits and choosing the right structure, powersports and motorcycle dealers can turn PPM into one of their most reliable profit centers and loyalty drivers.
👉If you’re a 20 Group member, you can access the 10-Step Guide to Launching a Prepaid Maintenance Program — which includes Request for Proposal guidelines to help you identify the best partner for your dealership — directly in your Knowledge Hub Portal.
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