# Vehicle service subscriptions: model overview & what works

> Vehicle service subscription, service contract, maintenance plan, it goes by many names, but the business model is the same: recurring monthly payment covering car operation over 3-5 years. Here are the 4 main models, what they cost, and which fits which customer.

**Source:** https://carruslink.com/en/guides/vehicle-service-subscriptions
**Last updated:** 2026-06-01

## Short answer (TL;DR)

There are 4 main models: Basic service (statutory service + oil, DKK 400-550/mo), Complete service (+ wear parts, tyre storage, DKK 600-750/mo), Premium (+ valet, loaner, glass, DKK 750-900/mo) and All-inclusive lease-like (+ insurance, charging, DKK 1,500-3,000/mo). Most independent dealers run the first three. All-inclusive requires fleet scale.

## What most dealers get wrong

- One offer for everyone, no differentiation by car type, age or customer segment
- One-off invoice instead of monthly subscription, no MRR effect
- Forget to sell to business customers, where subscription fits 10x better
- No 'upgrade flow' from Basic to Premium, customer stuck on the cheapest package
- Comparison with leasing isn't clear, customer doesn't know what they're getting
- No offer to 3-5 year old cars, the biggest opportunity

## Build a converting subscription portfolio

### 1. Start with 3 packages: Basic, Plus, Premium

Basic = statutory service + oil. Plus = + wear parts + tyre storage. Premium = + valet + loaner + glass. Customer picks a package, not 15 individual add-ons.

### 2. Price by car segment

Micro/family/premium segments have different expected costs. Use 3 price segments per package instead of one price for all.

### 3. Default on every car sale < 5 years

Show the package as default on the offer. Default effect: attach rate 4-5x. Car > 5 years: offer a 'refresh package' with fixed service intervals.

### 4. Business offer separate

Business wants fixed monthly price per car in fleet, invoice via company number and consolidated reporting. Build a 'fleet package' with 5%, 10% or 15% discount at 5, 10, 20 cars.

### 5. Upgrade flow at every contact

When customer books service, system suggests 'upgrade to Plus +DKK X/mo, then tyre storage included'. 10-15% upgrade per contact.

### 6. Lease comparison on the offer

Show the customer: 'Buy car + Premium subscription: X/mo for 36 mo. Leasing: Y/mo for 36 mo, but you don't own the car at the end'. Clear choice, clear advantage.

### 7. Existing customers with 3-5 year old cars

Biggest untapped opportunity: customers who bought 3-5 years ago without a contract. Send campaign: 'Sign up now, same price for the rest of the car's life'. 15-25% convert.

## What a mature subscription model gives you

- **3-5 years MRR per car** — Every car becomes 36-60 months of predictable revenue. Cash flow stabilises dramatically.
- **95-98% payment success** — Direct debit or card every month. No more 30-day chasing and collections work.
- **Workshop becomes a booking magnet** — Every subscription customer comes in 1-2 times/year. Utilisation rises, and every visit has an upsell flag.
- **Loyalty to next car purchase** — Subscription customers trade in with you 2-3x more often than non-subscribers, because you've stayed in touch and delivered frictionless service.
- **Upgrade MRR from existing** — 10-15% upgrade from Basic to Plus or Plus to Premium per year. Pure MRR growth without new sales effort.
- **Business value rises 2-3x** — Dealerships with MRR businesses sell at 2-3x higher multiples than pure sales operations. Service portfolio becomes exit value.

## The 4 main models side by side

| Model | Covers | Typical price/mo | Best for |
| --- | --- | --- | --- |
| Basic service | Statutory service + oil | DKK 400-550 | Car 0-3 years, private |
| Plus / Complete | + wear parts + tyre storage | DKK 600-750 | Car 0-7 years, private + business |
| Premium | + valet + loaner + glass | DKK 750-900 | Premium cars, VIP customers |
| All-inclusive (lease-like) | + insurance + charging | DKK 1,500-3,000 | Fleet, EV segment |

_Price ranges based on Danish market, Q2 2026. Actual prices vary by car and coverage._

## Frequently asked questions

### What's the difference between a service contract and a car subscription?

A service contract typically covers service and wear parts over 36-60 months, the customer owns the car. A car subscription (all-inclusive) also includes insurance, charging and sometimes the car itself. CARRUSLiNK focuses on service contracts, because that's the model independent dealers can run profitably without fleet scale.

### Which model fits my business?

If you sell 100-1,000 cars/year to private and small business: run the 3-package model (Basic, Plus, Premium). If you sell 1,000+ cars/year with fleet customers: add an All-inclusive lease-like model for the EV segment.

### What share of customers sign up?

Without default pricing: 5-10%. With default on the sales sheet + automatic follow-up: 35-50%. Top dealerships hit 60%, typically because they also sell to existing customers with 3-5 year old cars.

### What's the typical gross margin?

25-45% when plans are designed right with standardised cost per package. If cost is unknown: typically 10-25% or outright loss. Standardisation is the key.

### Can I start with existing customers?

Yes, the biggest opportunity is customers who bought 3-5 years ago without a contract. Run a campaign, send offers automatically, and expect 15-25% conversion. Typically faster than waiting on new sales.

### What happens if the customer sells the car?

Contract can typically be cancelled with 1 month's notice, or transferred to the new owner if the car is sold through you. Transfer is a huge loyalty driver, the next owner becomes your customer at zero marketing cost.

## Get your model designed in 30 min

We review your car sales, customer segments and workshop capacity and design a 3-package subscription model with 25-45% gross margin and 40%+ attach.

— CARRUSLiNK · https://carruslink.com/en/guides/vehicle-service-subscriptions