Your customer clicks on the link your service advisor just texted. The updated repair order at the end of the link confirms his worst fear: your technician’s repair recommendations are costing more than what’s in his bank account and virtually eliminating whatever’s left on his credit card at high balance. That’s when she sees a button in the top right corner of the repair order that says, “Pay Later: Payments as low as $XX.XX/month with consumer financing.” Click to apply. »
The button takes the customer to a consumer lending portal, where she begins a quick prequalification process designed to match her with the right offer from one of the four funding sources available in this digital hub. Back at the shop, your service writer prepares to send their third repair order update with the same funding button when the alert arrives: the customer is entitled to an amount that covers the cost of the recommended repairs .
Missing from this scenario are the payment schedules and compliance disclosures that never made financing repairs worthwhile. This example also presents repair financing as it should have been from the beginning, that is, as a payment option and not as a product that your young man at the counter could never have sold first. place. More importantly, this scenario puts Fix Now, Pay Later funding where it has never been before: at the decision point.
That’s the promise of the historic partnership announced in March between 360 Payment and Shop Boss, which became the first shop management software to connect to 360 Payments’ new Consumer Finance portal. Dubbed 360 CFP, it offers the repair industry the same shopping cart experience that made Buy-Here, Pay-Now financing the fastest growing payment method in 2021 and helped retailers to capture $97 billion of the $4.6 trillion in global e-commerce transactions in 2020.
And it’s a shopping cart experience that started to take shape thanks to COVID-19 when repair shops were forced to turn to digital vehicle inspections and text-to-pay solutions like BOSS. Pay to limit contact with pandemic-weary consumers. And it’s the one your customers still want today.
Since 2018, BOSS payment transactions have grown from around $280,000 to over $27 million in 2021. That’s an increase of over 9,600% in just three years. Also consider that BOSS Pay had already processed over $10 million in Text-to-Pay transactions in the second full week of April.
“We are at the intersection of two major trends: consumer awareness that there are better options today for borrowing, and the adoption of buy-now, pay-later in e-commerce…showing the magnitude of the need by consumers,” said Wisetack CEO Bobby Tzekin. PYMNTS.com in December, just before supplier BNPL announced that it would be one of the first sources of finance to make itself available to repair shops through 360 CFP.
Here’s why: According to data released in May 2019 by the Federal Reserve, nearly 40% of Americans could not cover a surprise expense of $400. Additionally, results from a July 2020 LendingTree survey found that nearly six in 10 of 1,071 vehicle owners surveyed skipped a needed car repair because they couldn’t afford it, 71% of whom were millennials.
Incidentally, millennials make up the largest portion of BNPL users, according to PYMNTS.com. These consumers, aged 26 to 41, lived through the Great Recession and learned the hard lessons of high credit card balances, making them prime candidates for 360 CFP.
Also consider that inflation rose faster in 2021 than in the previous 40 years. The result is that consumers who spent $100 a month on gasoline in 2020 paid $150 in 2021. That’s one reason why credit card balances, according to the Federal Reserve Bank of New York, increased by $17 billion in the second and third quarters of last year. year.
But if there’s one thing we’ve learned through recent economic challenges, it’s that Americans value personal transportation. Serious auto failure rates, which reached their highest levels since 2012 as the pandemic approached, remained near or below pre-pandemic levels in 2021. Also keep in mind that during the Great Recession , car loans were one of the best performers. asset classes during the Great Recession. Why? Because consumers need their vehicles.
Shop Boss integration with 360 CFP and funding sources such as Wisetack means your shop now has a way to keep customers on the road during tough times and a solution to shut down most recommended repairs during good times. Welcome to the new normal.
If you want to learn more about the seamlessly integrated consumer finance option for your store, Click here.
Shop Boss is the leading auto repair software for independent auto shops and is designed for maximum efficiency and profitability. Created by a former store owner, Shop Boss allows users to efficiently manage store operations from anywhere through an intuitive cloud-based interface. With a range of industry-leading features and integrations, Shop Boss enables shops of all sizes to go paperless and deliver a safe distance auto repair experience.