ClaimsFree Warranty is a vehicle service contract paired with a built-in incentive: if the customer never files a claim, the warranty retail price (less a small administrative deductible called the ClaimsFree deductible) is applied to the vehicle service contract on their next new car — purchased from your dealership only. Nothing is paid in cash. Nothing leaves the store. You lift F&I penetration on this sale and lock in the next one.
Plenty of buyers say no to the vehicle service contract for one reason: they think they're throwing money away if nothing breaks. F&I penetration stalls in the 50% range. The customer walks. Service never sees them again. They buy their next car somewhere else.
ClaimsFree Warranty gives a no-claim customer a credit equal to (warranty price − ClaimsFree deductible). That credit can only be applied to the vehicle service contract on their next new car purchase from your dealership. The customer wins either way — they get repairs, or they get a credit that locks them into your store for the next deal. You win every time.
F&I sells the vehicle service contract as usual. Penetration jumps because the customer is no longer 'gambling.'
To stay eligible for the credit, they complete required services at your dealership. You capture 5–7 years of service gross.
If they never file a warranty claim and complete services, they earn a credit equal to (warranty price − ClaimsFree deductible).
When they buy their next new car from you, the credit is applied to that vehicle's vehicle service contract. It's never paid out in cash and only works at your dealership.
A store moving 100 new cars a month at 50% warranty penetration sells 50 warranties. ClaimsFree Warranty typically pushes that to 57% — that's 7 additional warranties every single month, plus the F&I gross that comes with them.
But the bigger lever is the second card. Today, most warranty buyers still drift to Jiffy Lube for oil changes. ClaimsFree Warranty forces them back to your bays — every required service, for the full term — to stay credit-eligible. That converts all 57 warranty customers into captured service customers, not just the incremental seven.
Model your storeF&I gross books in full at the sale. Doesn't include captured service profit or breakage on unredeemed credits.
These figures are an estimated lift, not reported dealer results. Retention assumptions are illustrative — most stores see 35–45% service capture today and 65–75% when customers are tied back to the dealership for required services. Steady-state means every monthly cohort is somewhere inside its 5-year term. Model your own pricing and assumptions in the calculator.
Plug in your new-car volume, current penetration, and plan pricing. Get worst-case and expected dealer profit in under 60 seconds.
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