Repair shop owners often face an uncomfortable reality: Customers who need urgent repairs but can’t afford to pay upfront. This difficult situation frequently leads to deferred maintenance, a kick-the-can-down-the-road approach that further damages the vehicle while disrupting the shop’s revenue stream.
Fortunately, there’s a solution.
What is Buy Now Pay Later?
Buy Now Pay Later (BNPL) allows customers to spread the cost of repairs over time, making services more accessible through manageable, often interest-free payments. BNPL also helps shops complete more jobs, boost customer satisfaction, and get a leg up on the competition. Let’s dig into why BNPL can be a win-win for both auto shops and customers, and how to implement it successfully.
The Benefits of BNPL for Customers
Repairs can get expensive, and some consumers may not be able to foot that bill on the spot. BNPL offers a workaround by allowing customers with limited funds to have their vehicles fixed immediately and pay in installments. This gets them back on the road quickly without delaying needed repairs that could become worse–and more costly–over time.
BNPL also gives customers more financial breathing room. Unlike credit cards and personal loans that often come with high interest rates, penalties, and hidden fees, BNPL plans usually have lower or even 0% interest rates. By requiring smaller, set payments over weeks or months, BNPL makes it easier for people to manage their finances and avoid accumulating more debt.
And let’s not forget the convenience factor. BNPL is designed to be a relatively straightforward process. Customers can apply and get approved within minutes, and the remaining steps can be handled right there at the sales counter. Plus, most BNPLs run soft credit checks that don't impact credit scores, which may be ideal for people with less-than-stellar (or no) credit. Also, many BNPL options can be easily integrated into mobile apps and online accounts, making them exceedingly user-friendly.
The Benefits of BNPL for Auto Repair Shops
There’s a lot to like about BNPL from the shop owner’s perspective, too. The most obvious benefit: It can help generate additional revenue. Customers faced with hefty repair bills often decide not to go ahead with the service until they can afford it. Eliminating those financial barriers allows customers to move forward with repairs immediately, resulting in more completed jobs and more income for your shop.
Offering customers an easy and affordable payment option alleviates one of their main concerns–unexpected repair costs. BNPL allows customers to get the fixes they need without blowing up their wallet. Congratulations, you’ve just become a problem-solver! This makes customers feel good about your shop, leading to positive reviews, referrals, and repeat business.
When customers put off essential services because of a weighty repair bill, your shop loses out on the proceeds. Given the option of BNPL, customers are more likely to approve repairs right away, resulting in more business for your shop and a smoother, more predictable workflow. This extends into areas like planning, scheduling, and inventory management.
Finally, offering BNPL can give your shop a competitive edge. Consumers appreciate convenience and flexibility, and being one of the few shops in your area to provide this option sets you apart from the competition, especially in the eyes of price-sensitive customers. It can also be included in your marketing and advertising efforts (more on that shortly).
Implementing BNPL in Your Auto Repair Shop
If you want to offer BNPL options at your shop, you’ll need to select the right payment processor. So do your homework. Take a look at the transaction fees, terms of service, and customer support levels of different providers and see if they’re a good fit for your business. Some providers cater specifically to auto repair shops and may integrate well with your current point-of-sale system; others are more general but can still be effective.
Once you’ve chosen a BNPL provider, work with them to integrate their service into your business. Platforms like Shopmonkey, which offer all-in-one shop management software, have built-in payment processing that includes BNPL as an option. This makes it easy to offer the service at checkout, whether customers are paying in person or on their mobile devices. The bottom line is that BNPL should be seamless and easy to use for both your customers and staff.
Speaking of your staff, they need to understand exactly how the system works and be able to effectively communicate its benefits. For example, your team should feel comfortable suggesting BNPL as an option when discussing service costs with customers, especially for larger repairs. They should also be ready to field common questions and talk customers through issues like interest rates and the approval process. Basically, make it a part of your shop’s overall customer experience.
Like any new service, your BNPL program will benefit from effective marketing and promotion. Make sure customers know about BNPL by promoting it on your website and social media channels, as well as in your shop. You could also send out email or text message campaigns, or offer limited-time promotions that highlight the advantages of BNPL.
Capitalizing on Buy Now Pay Later
Buy Now Pay Later helps clear the financial hurdles that often stand between your customers and the services they need. By making repairs more accessible and affordable, BNPL can generate additional revenue for your shop, improve customer satisfaction, and help create a more predictable workflow by reducing deferred services.
For auto repair shops seeking a competitive edge, implementing BNPL could be your ace in the hole. The keys to success? Find the right provider, choose a system that integrates smoothly into your existing processes, and educate your team on the finer points of BNPL and how to effectively communicate its benefits.
As you weigh the options, consider an all-in-one auto shop software solution like Shopmonkey, which offers BNPL as an integrated feature. This system, with built-in payment processing, can simplify the implementation process and score big wins for your customers, your shop, and your bottom line.
