You see it most often at high line dealerships. They offer their customers a loaner vehicle every time they visit the service department for maintenance or repairs. And more and more dealerships have implemented the loaner car as a marketing tool to stimulate sales.

Case Study
Joan had a 6 year old Chevrolet Malibu. The warranty had expired and there had been a series of small, irritating maintenance and repair items needed. She brought the vehicle in and was informed that it was time for a 90k major service.

Since her last visit, the dealership had implemented a "new" loaner car as part of every service appointment for repairs or major services on every out-of-warranty vehicle. They also implemented a "free evaluation" of the vehicle, explaining that they were always in need of quality used cars.

While driving to work, Joan noticed the new car smell, the upgraded features of the new Malibu loaner and how much she liked the new design. Before she returned, she received a call from the salesperson at the dealership to set up an appointment to review the value of her present car. Later that night, Joan drove away in her new car.

Loaner car benefits
On the best possible day, a salesperson greets up to 10 people. And if he does, that's probably not a good thing because he isn't selling any of them. By contrast, the average service advisor sees 20 - 25 customers a day, many of whom have purchased from you before. Providing them with a "regularly scheduled test drive" of one of your new models keeps your products at the front of their mind.

Other benefits include:
- Customer convenience and satisfaction
- More efficient use of marketing dollars
- Scheduling flexibility if you need to sell more repairs
- Manufacturer participation is often available

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