Service contracts are one of the most underrated revenue sources for car dealers. With the EV transition, where Deloitte forecasts a 30–45% drop in traditional workshop revenue, "peace of mind" packages are even more important.
What is a digital service contract?
A digital service contract ensures ongoing service and maintenance with full traceability, automatic reminders and easy administration. Genesis already offers 5-year all-inclusive plans, and Polestar includes 2 years of service at purchase.
Benefits for the dealer
- Predictable revenue, Monthly payments create stable cash flow. Customers with service contracts have a 3x higher retention rate.
- Customer loyalty, Customers who come in for maintenance also choose the same workshop for repairs.
- Upsell, Every service visit is an upsell opportunity.
- Lock-in effect, Service contracts create a barrier to switching dealers.
Why service contracts matter more with EVs
Deloitte: "Customers with BEVs no longer recognize the value of regular maintenance checks." Service contracts as "peace of mind" packages are the answer to keeping the customer relationship.
Service contracts in an EV world
With 80–90% lower maintenance needs, service contracts must be reinvented:
- Annual battery health check and certification
- Software updates and calibration
- Tyre and brake packages (wear is different for EVs)
- Charge-box maintenance
- Extended warranty and "peace of mind" packages
Get started in 3 steps
- Define your packages, Start with 2–3 simple service packages (basic, standard, premium).
- Digitise the process, Use a system with automatic reminders. Paper and Excel don't scale.
- Offer at delivery, The best moment is at vehicle handover, when trust and engagement are highest.
CARRUSLiNK makes it easy to create and manage digital service contracts, with automatic reminders and EV-ready features from the start.
