We have started doing key replacement on our new and used cars. We pre-load the product and give it away for free for 1 year. We decided to introduce key replacement and test it out for a little bit to see if it could be a viable replacement to the Etch product that we currently have.
It's gone pretty good so far and our finance department has done a good job with the product. They have the option to upgrade the customer to a 3 year or 5 year program. There is pretty good gross in both plans. Obviously the higher they can penetrate, the more profit we can make on the back end of the deal.
They have been at about 55% for an upgrade. Our understanding is that some dealers are penetrating at 80% when they offer the key replacement as a giveaway. I think our finance guys are pretty good, so I'm starting to think that the 80% mark is unattainable. Is there anyone out there that is aware of a store doing 80% on key replacement? I would love to know if they are.