If you’ve got customers looking at major repairs to get back on the road, there’s a good chance that neither of you are thrilled. That’s because many people can’t handle a $2,000 repair bill, especially if they weren’t expecting it ahead of time. This makes auto repair finance plans an attractive option – you get paid immediately, and your customer can get back on the road.
These plans can be dangerous, however. Some of them take advantage of people with low credit scores by offering loans that have interest rates so high that they are unethical. If customers end up on one of these loans and it was offered in your shop, they will blame you even if you aren’t servicing the loan.
The key offering auto repair financing is finding a plan that take care of your customers and also ensures that you get paid for your services. Here are a few suggestions:
Ask for the details – Make sure that you understand how much you have to pay if the customer finances the purchase, and get a clear understanding of what customers will have to pay as well.
Always ask yourself “would I feel comfortable offering this loan to a customer if I was in the banking business and it was my job?” It you were charging your customers 120% interest, you probably wouldn’t be able to sleep well at night.
Check out their reputation – Ask for references from other shops before you select an auto financing company, and make sure they don’t have a poor online reputation. Remember that by offering financing from a company, you’re associating yourself with them. Make sure that they make you look better and not worse!
Ask your suppliers if they have an auto repair financing option – If you’re a member of a banner program, they may offer a financing option. Since you are doing business with these companies anyway, and they profit from each sale you make, they may offer a more attractive auto financing program. They also have more to lose – if they hurt your customers, they might lose their status as a supplier as well as a financier! This all makes banner programs and parts providers a great place to start asking about financing programs.
To learn more about how Repair Shop Websites can help your business succeed, call us at 866-665-1605 or email us at Team_RSW@RepairShopWebsites.com
