Offer Financing Options During Tough Economic Times – UnderhoodService

Offer Financing Options During Tough Economic Times

At Elite we believe that all shops should have financing options available for their customers. I realize that since the collapse of the economy money has been tight, and it is now a lot harder for many people to qualify. But before you judge the success of your financing programs based on the percentage of your customers who qualify, consider that by offering 90 days same as cash, you'll be able to promote "financing" in all your marketing programs.

By Bob Cooper

At Elite we believe that all shops should have financing options available for their customers. I realize that since the collapse of the economy money has been tight, and it is now a lot harder for many people to qualify. But before you judge the success of your financing programs based on the percentage of your customers who qualify, consider that by offering 90 days same as cash, you’ll be able to promote “financing” in all your marketing programs. There’s no doubt about it: This in itself will help you bring in more customers during tough times.

Additionally, when a customer walks into your shop sees signage that you offer financing, it will put them at ease, and they’ll be a lot more receptive to your recommendations. You also need to consider that even if only one out of 10 applications you submit is approved; that’s one more sale than you would have otherwise had.

Lastly, by having financing available, it allows you to do what is referred to as a “trial close.” This is when a customer tells you they don’t have the money, then you tell them you offer 90 days same as cash on approved credit, and that it’ll only take a few minutes to run their application. If they balk at your offer to see if they qualify, it’s a good indication that there’s another concern that they have.

So before you get too disheartened over a high percentage of declines, consider the marketing value that comes along with offering financing, consider the additional sales you’ll be able to close, and consider the value of being able to use a trial close.

Finally, be cautious if you decide to finance customers yourself. If someone can’t qualify with an outside finance company that would love to get the deal, then that should speak volumes about the probability of the customer repaying you. Add to that, if they don’t repay you, then you’re going to be in the collection business. I am sure you’ll agree: That’s one place you certainly don’t want to be.

For the last 20 years, Bob Cooper has been the president of Elite Worldwide, Inc. offering automotive professionals sales, marketing and employee management solutions. To learn more about how Elite can help you build your auto repair business, visit www.EliteWorldwideStore.com.

You May Also Like

Bosch Releases 212 Aftermarket Parts in 2022

The parts cover nearly 64 million vehicles in operation across North America.

Robert Bosch, LLC announced it has added 212 automotive aftermarket parts to its portfolio in 2022, covering nearly 64 million vehicles in operation across North America.

The new Bosch products, which cover domestic, European and Asian passenger and commercial vehicles, include 74 braking parts, 52 fuel and water pumps, 14 ignition coils, 27 cooling fans, rotating machines, spark plugs and ESP units, 38 sensors and seven fuel injectors. 

Winter ASE Registration Open

Three options offered for testing and recertification.

Federated 50/50 Challenge Awards Over a Hundred Prizes

Federated conducted the 50/50 Challenge to recognize and thank ASE-certified automotive service professionals.

Mitchell 1, ASE Present 2022 Technician of the Future Award

Nathanial “Nate” Nie of Mission Viejo, California, was named the 2022 Mitchell 1 / National Institute for ASE Technician of the Future.

Schaeffler Group Releases Series of LuK TSBs

In conjunction with its REPXPERT service brand, Schaeffler provides technical tips and service information for LuK products.

Other Posts

SMP Closes the Year with 214 New Part Numbers

SMP says it is committed to providing replacement parts for hybrids and EVs through its Standard and Four Seasons brands.

GB Remanufacturing Releases 2022 Year in Review

The GB Reman 2022 Year in Review is available for download.

SMP Closes the Year with 214 New Part Numbers

SMP says it is committed to providing replacement parts for hybrids and EVs.

Survey Shows Greater Trust in Service Professionals

More than 70% reported increased levels of trust in repair shops and/or service technicians.