I am looking for some feedback and recommendations on how to approach car dealers with a unique program to foster customer loyalty and drive more business - especially for their parts and service areas.

The program entails a membership club where consumers can get 20% cash back on their purchases - not paid for by the dealership. Dealership still gets full price.

I would like to know the feasibility of a dealership charging a little extra on each vehicle sale and giving the membership away to the customer. ($750-$1500 -- 6 month vs 1 yr membership)

The cool thing about the this membership is the dealer, employees (if interested) and customers can all also earn money sharing the membership with others. With the dealer giving each customer a membership - they would be building an additional revenue stream for everyone automatically. What better way to build customer loyalty than for them to get 20% cash back at the dealership as well as potentially earning money to cover their new car payment (or more)

Thoughts?