There are few things that can be universally agreed upon; the need for access to reliable transportation, however, is not debatable. It is a lifeline to our livelihood, our jobs. As such, car repairs should be considered a non-discretionary expense, and yet, too often, consumers forgo important service or repair work. The reality is that non-critical repairs, body work or service can pose a significant challenge to consumers since most Americans don’t have the funds to cover an unexpected $400.00 bill. And yet, unplanned auto repair expenses are common: the average American is required to fix or repair his or her car with a fair amount of frequency. A recent survey of consumers showed that 43% of them wished that financing options were available for repairs.

With this in mind, I believe that offering fair, fast and comprehensive consumer financing for fixed ops departments is not just a “nice to have”, but a “must have” in order for dealerships to meet consumers where they are.

The need for speed — and the ability to get repairs done now

In fixed ops, when a consumer is making a financing decision, the speed of the financing transaction is key. Your consumer financing solution shouldn’t be time intensive or laborious, and it shouldn’t involve extensive application processes where customers must share sensitive personal information like income or whether they rent or own a home.  In fact, one of the reasons, we chose Sunbit as Browning Automotive Group’s consumer financing technology provider was because the approval process is completed in under one minute and requires just three pieces of information; a driver’s license, phone number and email address. These three things enable Sunbit to perform a credit check and helps them to determine the maximum amount our consumers can spend with the fixed ops department on any given day.

It has to work for most consumers – not just some

A well-conceived financing solution should approve as many consumers as possible—casting a wide net to include consumers of varied income and credit histories. Make sure your chosen solution works for most customers – not just the elite with high FICO scores. You’re there to help your customers get the services or parts they need. Eliminating the stress of the application and approval process is essential.

One thing I looked for was a high approval rating in our consumer financing technology partner, and we elected to go with the solution that offered approval for nearly 90% of applicants. This is particularly important to our service advisors, who not only need a quick and easy process to keep the service drive efficient, but who also want to maintain positive communication with customers. A high approval rate removes the stress and barrier of having to let a customer know that he or she has been denied for credit — a humiliating experience that no one wants to have.

Once you have your solution, broadcast it loud and clear

Let’s start with the customer’s mindset as they walk into the dealership. When a customer comes to buy a car, he or she KNOWS there are various way to finance the car… but when someone walks into the service center, many times they don’t expect financing to be available. Therefore, customer education becomes critical.

Once you have a tool built for the service drive that is fast with high approval rates, the secret to get the most out of it is simply to create awareness in every step of the customer engagement.

•       Signage– Put signs and banners on the website where the customer is scheduling the visit, on the drive and near the advisors – a customer who knows you offer payment plans will ask about it.
•       Introduction– Early on the Advisor should let the customer know that “we now offer payment plans”. Think about this like any other amenity the dealership is offering. Not unlike complimentary shuttle service, rental car agreements, and Wi-Fi, consumer financing is a valuable service to offer your consumers. In some dealerships, we incorporated it into the 360° car inspection; we let the customer know that if we find anything that needs to be done today, we offer payment plans.
•       When providing an estimate– Proactively offer the financing solution as soon as you start discussing repair fees and estimates. In other words, don’t wait for the customer to tell you his financial story. You can lead with “by the way, I wanted to let you know we offer payment plans…“
•       When quoting a price on the phone– When you call a customer to talk about the cost of the repair, advisors need to stress the availability of payment plans.
•       At car pick up– When the customer comes to pick up the car, remind him/her about the option. Even if they don’t need it today, it might come handy on the next visit and it may even impact their choice of dealership in the future.
•       On any digital customer touch point– On any piece of customer facing communication, be it an invitation for a check-up or follow-up on declined work, it always helps to remind the customer that there is a financing option in the dealership.

All these touch points work if coupled with an understanding that advisors should never try to guess how much money their customer has in their pocket or what other expenses he or she might be incurring in the near future. Letting a customer know they have another option is value-add.

About the Author

Scott Dickinson is Executive Vice President of Browning Automotive Group, a California-based company with over 14 franchises in 9 locations employing over 900 professionals. Scott has 34 years of experience in the automotive industry, and believes in forward-thinking, innovative solutions that serve his customers and employees well. Learn more about Browning Automotive Group at https://www.browningautogroup.com/.