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How to help your customers pay for Auto Repairs

By Ann Neal A look at repair financing options

Auto repair shops, like all businesses, al-allowing a consumer to go to a competitor who ways need new customers. One way for shops may have it.”

Ato gain loyal customers is to offer an option to finance auto repairs. Auto fnancing options Q&A

About a third of American consumers do not Car repair financing enables shops to close more qualify for traditional financing based on their sales with customers who may not have upfront FICO scores, according to Ryan Slobodian, vice cash or access to traditional forms of credit. Auto president of Snap Finance LLC. Service Professional asked companies for details

“In order for repair shops to effectively serve on products designed to help consumers pay for 35% of people in their stores, shops need a tertia-auto repairs. Six responded: American First Firy or additional finance option that serves people nance Inc. (AFF); Confident Financial Solutions with credit challenges,” says Slobodian.Inc., which goes to market as DigniFi; FlexShop-

An installment loan option engages a whole new per LLC; EasyPay Inc.; Snap Finance LLC; and consumer market, bringing them into a shop where West Creek Financial Inc. they have a good experience. “Their loyalty is goASP : What services and products do you ofing to stay with that shop because it offers a finance fer to providers of auto repair services? product that works for them. We focus on treating AFF: We help auto repair shops meet the needs them with trust, respect and dignity whereas a lot of more customers with payment plans they can of times the credit-challenged consumer may not afford through loans or financing plans that aphave that experience,” says Slobodian.prove more customers, including those without a

In addition, a payment option that breaks the FICO score. By including a nonprime financing cost of a repair into smaller amounts may lead solution, your shop can provide an alternative to higher tickets as the consumer has more cash payment option to a credit-challenged customer to move from crisis management to proactively who would otherwise go to a competitor or simservicing their vehicle.ply never walk in your door. It’s like providing in-

Window or street signage with no-credit-stant buying power for your customers to pay for needed messaging draws credit-challenged conparts, service, warranties, tax and labor. sumers into a shop. “These are payment buyers. DigniFi: We offer closed-end installment They are focused on the payment and how much loans to consumers for the primary purpose of it will cost them per paycheck,” says Slobodian.financing auto-repair related expenses. Loans

Snap offers a 12-month term installment loan range from 12 to 36 months with APRs from with an early buyout option. The goal is to set 9.99% to 36%. Customers will have their interest up the consumer for success, according to Slo-waived if they make all their scheduled payments bodian. “We approve an amount that is enough on time and pay off their loan in full within 60 to complete the transaction but gets them into a days. There are no prepayment fees. DigniFi also payment that will allow them to succeed.”offers cash advance loans deposited directly into

Snap’s installment loan products are no re-the consumer’s bank account, vehicle protection course, meaning Snap takes all the risk, not the plans, and roadside assistance programs. shop. “It works a lot like a credit card transacEasyPay: We provide a non-lease credit solution in that we settle in two business days, and a tion at the point of sale, with a unique approach shop has the money in its account. The risk to a that offers customized approvals for customrepair shop is not offering a product like this and ers with good credit to no credit. Unlike leas-

9 QUESTIONS TO ASK A POTENTIAL CUSTOMER FINANCING PROVIDER

Secondary finance programs enable automotive repair shops to offer payment options for customers who may not qualify for or want traditional financing to pay for auto repairs. Here are 9 questions to ask when choosing a secondary finance program along with responses from six companies: American First Finance, DigniFi, EasyPay, FlexShopper, Snap Finance and West Creek Financial (chart continues on next page). AFFDigniFiEasyPayFlexShopper SnapWest Creek How long In as little as 24 For many Usually within 1-2 business About 5 Typically for a shop to 48 hours.shops, just a 24 hours of days. Rollout is minutes with takes less to qualify few hours.submitting the dependent on instant than 24 for your enrollment the number of approvals. hours. program?form.stores. In what All 50 states. All states In 49 states.All states All 50 states. All states exstates are except Mas-except New cluding New your ser-sachusetts, Jersey, Hampshire, vices and North Dakota, Wyoming, New Jersey, products South Caro-Minnesota, and Minnesota, available?lina, Vermont, Wisconsin. and and West Wyoming. Virginia. What are We offer a Transaction 2.99%.No shop fee Transactions We build the shop no-recourse fees are comand no fees are a program transac-solution with no petitive with transaction dependent around dealer tion fees?setup costs. A the market fees.on several needs. small merchant and in some variables. We discount is cases lower. work with charged on We use the the shops to the bank transaction ensure they loan product fee to offset are set up for which includes our higher success. 101-day early approval payoff discount rates and the options.risk we take on behalf of the shop. What Typically Approval Up to 80%.Approximately Up to 80%; We approve is your approval rates rates range 80%.varies by an average approval range between from 60% to geography of 82% of rate?70% and 90%. 65%. and other customers. factors. What Up to $5,000.Loans start Up to $5,000.Up to $2,500. From $250 to We approve are your at $350 and $3,000.up to $5,000, approval go to $7,500. with an averamounts? Average loan age approval is $1,400.of $1,850. What is 75% plus.About 70% to 80% to 90%.Approximately Typically 75% 85% plus. your close 75%.85%.to 85%. rate?

FINANCING

FOR ALL CREDIT TYPES

AFFDigniFiEasyPayFlexShopper SnapWest Creek What Internet access.None. We Internet None. We Options Internet contechnol-encourage access and a provide all the include tablet, nection and ogy is consumers to computer or technology laptop or web browser. required complete the tablet.through our desktop comby the application mobile applicaputer. Cusshop?process on tion.tomers can their personal apply on their device.own devices. How long We fund our Funds are Funds are sent We pay Snap funds Funding is for a shop merchant partreceived via the same day if immediately within two transferred to be paid ners the next ACH deposit the transaction at the point of business directly to the full business day within 48 is received by sale.days, similar your bank amount of after services hours (often 4 p.m. EST.to a credit account the sale?are delivered to the same card settle-within 24-48 your customer. day) once ment.business the customer hours of a signs the loan completed documents. order. How long Start to finish is Customers Customers can 5 minutes or Application Our applicafor con-3 to 5 minutes apply online be prequali-less with our takes 3-5 tion takes sumers to on a mobile on their own fied without easy mobile minutes and less than 3 qualify?phone using our device; affecting their application. approvals are minutes. text-to-apply decision in credit score in given in under feature. minutes.as little as 2 5 seconds. minutes. Visit www.autoserviceprofessional.com for more information on options for financing auto repairs.

ing options, EasyPay Finance doesn’t give every fers the flexibility of lease-to-own to consumers, customer the same rate: they get the rate that is allowing them to get the repairs they need while right for them. Our program features an inter-saving the sale for providers of auto repair servicest rebate if customers pay off the balance in 90 es. Our product requires zero integration with the days; financing up to $5,000; $0 down required; retailer and, like any other customer transaction, the ability to prequalify customers in as little as the retailer is immediately paid at the point of sale. two minutes without affecting their credit score; Snap: Snap provides rent-to-own and installelectronic signatures and mobile applications; ment products depending upon the need of the fully transparent contracts and fees; and the shop and their consumers. shop is paid the same day if the transaction is West Creek: We offer easy-to-use no-creditreceived by 4 p.m. EST.needed financing for your customers. We approve

FlexShopper: When consumers are short on over 80% of customers, with an average approval cash and do not qualify for credit, FlexShopper ofof $1,850 and a max approval of $5,000. ■

Contact for more information: AFF: www.americanfirstfinance.com ; isales@americanFlexShopper: sales@flexshopper.com firstfinance.com; 866-738-7089Snap: www.snapfinance.com/partner ; DigniFi: www.dignifi.com; Tim Clay, tim.clay@dignifi.com, 1-888-503-0949; sales@snapfinance.com 972-757-3107; Greg Duncan, greg.duncan@dignifi.com, West Creek: www.westcreekfin.com; 844-238-6500 972-741-4478(available 24/7/365) EasyPay: www.easypayfinance.com ; sales@easypayfinance.com; 866-791-0915

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