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With Rise in Automotive Service Costs Consumers Turn to Financing

Vehicles are increasingly more sophisticated and technology-dependent. Repairs are no longer a simple process of removing a bolt or twisting a wrench, but now include complicated programming into vehicle electrical systems.

Repair order costs have thus increased causing many consumers to delay the repair or use some sort of financing option. As a result, many manufacturers recently introduced branded credit cards for consumer use when confronted with a high repair bill.

However, a challenge many service customers encounter if they wish to take advantage of manufacturer branded credit cards is that they are no different to traditional credit cards. Most are subject to the same credit requirements. Banks such as Chase, Citibank and others, are the credit issuers and typically have a higher standard for approvals. This translates into customers struggling to get approval, which is detrimental to the service department. One would assume that if a customer is presented with a large repair order, and applies for credit to pay for it, they plan to accept the recommended services. If that credit isn’t approved, or that approval is delayed, dealerships may end up seeing that customer walk out the door and declining the recommendations as they simply cannot afford to pay.

At CFS, because we specialize in automotive repair financing, it is an easier process for many consumers to gain approval for their service financing. Our credit approval process factors in customers at multiple tiers, rather than just those with excellent credit. This means more approved customers and more fulfilled repair orders.

Most consumers want to keep their car maintained properly and any objection they have when presented with an unexpected repair bill usually has more to do with available finances, rather than any unwillingness or lack of desire to have the repairs completed.

With CFS financing you can provide your customers with a valuable and convenient way for them to get their vehicle back on the road. And that results in increased service revenue and happier customers. A win-win!