NIADA Certified Pre-Owned on Wednesday introduced the NIADA CPO Daily Rental Vehicle Program, which leaders say can bring increased service revenue to independent dealers.
Scott Lilja, who is senior vice president of member services at the National Independent Automobile Dealers Association, said the new program offers the association’s dealer members improved efficiencies “and an outstanding complement to our CPO program.”
NIADA created the new program in conjunction with PDP Group, a broker and administrator for OEM service rental vehicle programs.
The association said the program can help NIADA-certified dealers “create another profit center within the dealership.”
NIADA also described the service rental program as a “customer experience tool.”
Customers dropping off their vehicle for repair receive a service rental vehicle to use while their vehicle is in for service. NIADA said the customer will be happy with the convenience of the service rental vehicle, and the service department will feel less pressure in the event of delays. The program, according to NIADA, provides a competitive edge to the dealership.
The program helps dealers increase service revenue by helping them capitalize on the NIADA CPO rental reimbursement benefit of up to $40 per day/$280 per repair, the association said. That, according to NIADA, allows NIADA Certified dealerships to gain rental income that a competitor would otherwise capture.
The increased customer loyalty, maximized service revenue and improved dealership traffic can create additional sales opportunities, the association said.
“We are thrilled to bring PDP Insurance Group’s substantial resources and extensive OEM vehicle daily rental program expertise to NIADA Certified,” Lilja said.