Complete 100% of Your Repair Orders

Let's talk about the root cause of incomplete repair orders:

Are you finding that more and more of your auto shop customers are not able to complete the necessary work needed for their vehicle? You are not alone, as 1 out of 3 customers who walk through your door cannot cover a $400 car repair.* This means roughly 122 million Americans do not have the funds needed to repair their cars. Over the last 18 months, we have seen a significant decline in the volume of cars coming in for repairs and the percentage of repair orders (ROs) completed, all due to the volatility of the economy.

The old way of handling auto repair financing:
I bet what most shop owners think is - “Wait, I already have financing, and most people either avoid it or get declined.” They set up an account with one primary lender, throw some brochures on the counter, and tell your service writers to start telling customers about your financing option. Here are the issues:

1. You are putting these awkward financial conversations all on your service writers. This means they may take the easy way out, and not even talk about it unless the customer asks them.
2. Even if a customer does see the brochure and wants to apply, you are now slowing down your service writer by having to fill out an application with the customer in front of them.
3. What happens when they get declined? Does your service writer just say “sorry?” Or maybe you have a secondary lender, good on you! Now, you must have that awkward conversation informing the customer that they were declined for funding, but can try again with another lender after we obtain all their personal information again. Definitely not a conversation you want to have!

While we can agree that this option is preferable to no financing, it’s not the optimal solution.

The new school way to handle repair financing:
You've heard of a waterfall, right? That's our approach for addressing the issue in 2024. First, set up at least two lenders: a primary one for individuals with good credit and a secondary one for those with no credit. More lenders are always beneficial. Then, register with 360 Payments’ auto repair consumer financing platform, which facilitates the waterfall process.

1. Directly from within your RO in your Shop Management Software, you send a link to the customer's phone to apply for financing.
2. The customer will then complete the application themselves, making this a much more user-friendly experience for your shop and your customer. If they get declined, all they need to do is push a button to take all their information and push it to the secondary lender where they will automatically get approved.
3. Now, take it to the next level and let’s offer it at the times of decision by offering a link on your DVI when the customer is reviewing their RO. This now allows them to make a true decision and not just a decision on price.

So, now you have given your shop the ability to complete 100% of your repair orders, as 100% of your customers can afford that average $400 repair cost. Another fun benefit of offering this at the time of estimate via your digital vehicle inspection is that you will find people will use it even if they do not need it. Listen to this customer's real-life experience.

The Boost to Repair Orders:
So, you have the consumer financing option set up, and you have also increased your average RO by 3X, but you are now looking for the next step in improving your business. You may remember that PayPal bought Venmo not too long ago, and both companies' combined forces. Even better, with 360 Payments, you can offer your customers far more ways to pay with PayPal/Venmo. This again eliminates the price roadblock barrier and puts the customer in a position to make a true decision on their repairs.

When it comes to getting paid, the more options you have the better. Let's consider Venmo for a moment. Think of a college student away from home, their car breaks down and gets towed to your shop. They have no money, but their parents offer to pay for repairs. Well, now you are worried about a possible chargeback if you take the payment over the phone, or it could potentially be a case of fraud. Since you accept Venmo, the student can simply have his parents Venmo them the money, and now they can pay you straight from their account. No more over the phone payments or chargebacks and the best part about it is no more waiting for mom and dad to come pay later.

Keep your shop's repairs rolling by offering easy financing with 360 Payments! Now they can say “yes” to every fix, and you get to complete more orders. It's a win-win!

*Source from the 2022 Federal Reserve annual report.