# How dealerships handle service contracts end-to-end

> A service contract isn't one document, it's a 5-year process: sale, signature, billing, service recall, upsell, renewal. Here's exactly how a mature dealership runs the whole chain without losing a single contract in the gaps.

**Source:** https://carruslink.com/en/guides/service-contracts-end-to-end
**Last updated:** 2026-06-03

## Short answer (TL;DR)

End-to-end service contract handling requires 6 linked steps: pricing on the offer → digital signature → direct debit → workshop booking → upsell → renewal. If any one step is manual, MRR leaks. CARRUSLiNK runs all 6 steps in one platform so no contract 'falls between the cracks'.

## Where contracts leak today

- Salesperson forgets the contract on the sales sheet, because it's not default
- The contract is sent as a PDF after the deal, 25-30% never come back signed
- Billing runs as a manual invoice, 5-10% defaults
- Workshop doesn't know if the customer has a contract, upsell is lost
- No reminder before expiry, contracts die in silence
- Bookkeeping spends 6-10 hours/mo reconciling charges to e-conomic

## The complete 6-step end-to-end process

### 1. Offer: default pricing

When the salesperson builds the offer, the contract is shown by default with the calculated monthly price. The customer sees one combined price: 'Car + contract: X today + DKK 650/mo'. The default effect alone lifts attach rate from 8% to 35-50%.

### 2. Signing: in the same flow as the sales sheet

Customer signs contract and sales sheet on the same tablet, same MitID flow, same minute. 100% signed on the spot, no 'I'll send it tomorrow'.

### 3. Activation: direct debit + accounting

Contract activated automatically: enrolled in direct debit, first charge scheduled, entries pushed to e-conomic. Bookkeeper sees zero manual work.

### 4. Operations: workshop booking + upsell

When the customer books service, reception sees the active contract, coverage and km status. Upsell on tyres, valet and glass is suggested automatically.

### 5. Renewal: 6 months before expiry

System sends a renewal offer with a new price based on the car's current age/km. Customer confirms on an SMS link with MitID. 70-80% renew.

### 6. Measurement: weekly dashboard

Live KPIs: attach rate per salesperson, churn per model, MRR trend, renewal rate. Weekly 5-min review with the sales manager, not monthly Excel exports.

## What end-to-end gives you

- **Default price shown (40% attach)** — Default pricing on the offer. It's the single biggest lever, attach rate 4-5x. Once that's in place, signature and billing are next.
- **Direct debit, 95-98% success** — Automatic direct debit + retry flow + SMS reminder means you don't chase money manually.
- **Auto offer 6 mo before, 75% renew** — Contracts don't die in silence, they renew before the customer forgets. Lifetime per contract rises from 36 to 60+ months.
- **Upsell on every booking** — Reception and mechanic see status and suggest tyres, valet and glass in 30 seconds. DKK 200-600 extra per visit.
- **Sales manager sees the pipeline live** — No weekly Excel reports. Live dashboard per salesperson, per model, per period, available anywhere.
- **Zero contracts 'in the gap'** — Every contract has a defined status: quoted, signed, active, billing live, upsell available, up for renewal. Nothing falls out of the pipeline.

## Manual process vs end-to-end in CARRUSLiNK

| Step | Manual / 3-systems | CARRUSLiNK end-to-end |
| --- | --- | --- |
| Offer | Salesperson remembers (8% attach) | Default price shown (40% attach) |
| Signature | PDF after deal, 70% return | Tablet/MitID same flow, 100% |
| Billing | Manual invoice, 90% success | Direct debit, 95-98% success |
| Workshop | No status visible | Live contract + upsell flag |
| Renewal | Excel reminder, 25% renew | Auto offer 6 mo before, 75% renew |
| Bookkeeping | 6-10 h/mo manual | 0 h, native e-conomic |

_Figures based on CARRUSLiNK customers, Q1-Q2 2026._

## Frequently asked questions

### What does 'end-to-end service contracts' mean?

It means the whole lifecycle runs in one system: pricing on the offer, signature, billing, workshop booking, upsell and renewal. As opposed to the typical setup where DMS creates the contract, Excel tracks it, mail handles renewal and the bookkeeper retypes in the accounting system.

### How many contracts can a normal dealer run in an end-to-end model?

A dealership selling 300-500 cars/year typically hits 400-1,500 active contracts after 18 months at 40% attach + 75% renewal. At DKK 650/mo = DKK 260,000-975,000 in monthly MRR.

### What's the first step to fix?

Default pricing on the offer. It's the single biggest lever, attach rate 4-5x. Once that's in place, signature and billing are next.

### How do you handle car age and km in renewal?

The system pulls current data from the vehicle registry or workshop history, calculates a new monthly price and proposes an adjustment. Customer confirms, or negotiates. 70-80% accept the automated offer.

### Can existing contracts be imported?

Yes, we import from Excel, DMS export or other systems as part of onboarding. Active contracts continue, and renewal flows activate for those nearing expiry.

### What happens if direct debit fails?

The system retries after 3 and 7 days, sends an SMS to the customer with a card link, and only escalates to manual handling if unpaid after 14 days. Defaults typically drop to 2-5%.

## See the full chain in 30 minutes

We show offer → signature → billing → workshop → renewal in one flow, based on real car sales. You'll see exactly where you're leaking MRR today.

— CARRUSLiNK · https://carruslink.com/en/guides/service-contracts-end-to-end