Genuine PartProtection is a new type of service contract that provides additional coverage for service parts beyond Mercedes Benz's service part warranty (SPW) for an extra cost to the customer. This plan provides 4 years, unlimited miles of coverage (2 years SPW + 2 years Genuine PartProtection). In addition, Genuine PartProtection offers a Limited Lifetime Battery Warranty that provides unlimited battery replacements as long as the customer owns their vehicle. Each battery also comes with two roadside assistance jumpstarts for life.
Program Details
Genuine PartProtection is designed to be sold by parts and service staff. There is no need to send the customer to F&I for a quote or contract. The Genuine PartProtection program has three objectives:
- Increase service customer retention
- Sell more service parts
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Provide additional profit
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Genuine PartProtection can be sold in three ways: 1) on the service drive or Quick Lane, 2) when parts are sold wholesale to independent repair facilities (IRF) or fleets, 3) over-the-counter sales.
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Genuine PartProtection includes integration with the dealership’s dealer management system (DMS) and the Genuine PartProtection website to speed the quote and sale process.
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Dealers must enroll in the Genuine PartProtection program by entering their dealer Code and clicking the Enroll button at the top of this page.
How can Genuine PartProtection deliver on the above objectives?
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Customer Retention – Most customers will remember they have a service contract and will return to the selling dealer if they notice something odd when driving. Imagine tying every retail service customer to your dealership for another 4 YEARS! What would that do for your business?
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Sell More Service Parts
– IRF’s don’t like to absorb the cost of labor when a service part fails. Genuine PartProtection pays for the cost of parts & labor if a covered part fails. Once IRFs and fleets learn that Genuine PartProtection covers all their labor time they will buy more parts from dealers.
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Additional Profit
– Genuine PartProtection has been designed to provide dealerships with an upfront commission structure for each contract sold.
Why is Genuine PartProtection needed?
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National studies by major retailers, including auto dealerships, show that 20% to 35% of customers will buy a service contract when offered and another 33% could be convinced to purchase a service contract if they feel “it’s a good deal”.
What parts are covered by Genuine PartProtection?
Most new and remanufactured mechanical, electrical and electronic original equipment Mercedes Benz parts, and similar OEM parts for competitive make vehicles.
What vehicles are eligible for Genuine PartProtection?
Any light duty Mercedes Benz vehicle, including Sprinters, commercial vehicles such as: taxi, shuttles, limos, ambulances, police vehicles, etc., and most competitive make vehicles using OEM service parts.
How much commission can a dealership make on a Genuine PartProtection contract sale?
Customers typically pay 20% extra for the Genuine PartProtection coverage, and dealers retain about 50% of this amount as a commission. The remaining amount is retained by the obligor to pay for future claims, and to pay Genuine PartProtection operational expenses & services. Dealer commissions can vary due to RO or wholesale invoice amounts, dealer prices & plan markup rates.
Why is enrollment necessary?
Enrollment is needed so we can obtain your agreement to: integrate Genuine PartProtection with your DMS and obtain your agreement to pay a monthly program fee.
What are the program fees for Genuine PartProtection?
The program fees are $129/month, plus a DMS integration fee which varies per DMS provider.
Can these program fees be reduced and/or eliminated?
There are two rebate tiers designed to reduce and/or eliminate this fee, based upon the size of the dealership. Dealers reaching a minimum threshold of sales in Tier one will receive a rebate of $80, effectively reducing their monthly fee to $49. Dealers reaching a minimum threshold in Tier two have the entire $129 rebated, completely eliminating their monthly fee.
The monthly DMS fee can be eliminated by Adopting the Genuine PartProtection program, which means selling contracts on at least 50% of the eligible repairs in either Parts or Service.
How can I enroll my dealership?
Enter your Dealer Code to find your dealership, and fill out the required information to proceed to the next steps.
Once getting to the confirmation screen, agree to the terms and conditions to enroll!