Unlike those offered by many of our competitors, Portfolio’s service contracts include a tieback provision, a critical service and sales retention tool that benefits your dealers and their customers.
A tieback provision is a contractual clause that specifies the conditions under which a dealership can be held responsible for costs associated with repair claims. For Portfolio, the clause requires an owner to return a vehicle in need of service to the dealership that sold the contract if the breakdown occurred within 40 miles (20 miles in California) or ask their dealer to waive the clause.
If the customer experiences a breakdown or other service issue outside the tieback range, the customer must use a service facility that belongs to the dealer’s service provider network.
For dealers, the benefits of tiebacks are clear: A higher service absorption rate means more service visits, more service revenue and more opportunities for future sales.
But customers benefit as well. The selling dealer has the factory-trained and -certified technicians and brand-specific equipment and expertise needed to properly diagnose and repair increasingly complex and computerized vehicles. Tiebacks also mean our dealers have a say in critical claims decisions.
Customers purchase service contracts to protect their investments. Tiebacks help mitigate risk and promote a safer, more secure ownership experience — a key competitive advantage for Portfolio dealers.
