There are lots of ways you can gauge customer satisfaction. You see it in survey metrics. You see it in the positive reviews customers post about you online. You see it in their smiles when they drive away from the dealership. You see it in the number of times they bring you repeat business. And, if you’re doing financing right, you see it in the look on their faces when they realize they can service their vehicle today and pay over time.
People who leave your service drive because of the cost of parts and repairs are not satisfied customers – and it’s not your fault. You never had a chance to show them what kind of customer service you provide, or what kind of automotive expertise you bring to the table. That’s why financing offerings are so important. In a day and time when 40% of Americans can’t cover an unexpected $400 cash expense, financing is a critical tool you can use to turn prospects into customers – happy customers.
The problem with traditional financing options, in addition to lengthy applications, is low approval rates. At some dealerships, financing approval rates hover around 40%, and a significant portion of the remaining 60% leave the dealership without signing on to get the services they need. Chances of getting approved are so low at some dealerships, they don’t even bother offering it to the customers who need it most. And unfortunately it’s the customers who need financing most who seem least able to get it.
One financing technology that’s changing all that is called Service Now, Pay-over-time. You may have seen this kind of payment option in online marketplaces; people can use Buy Now, Pay Later to make purchases they otherwise might not be able to afford. But the true beauty of Buy Now, Pay Later is when you apply it to products and services people need, not just want – including services like auto repair.
Some Buy Now, Pay Later technologies can deliver astonishing approval ratings that have a significant impact on dealership revenue, approving around 90% of customers who apply. With approval rates like that, dealerships can feel comfortable offering financing to everyone, even customers who wouldn’t qualify for traditional financing options. It’s a proven way to help service centers decrease declines and help more people stay on the road safely.
One in three dealership service centers in the US are now offering Sunbit, an all-digital Service Now, Pay-over-time solution powered by AI, and it can all be done on an iPad right in the service drive or on a customer’s mobile device. Unlike traditional financing solutions, it doesn’t require a hard credit check to apply, it doesn’t involve a complicated application, and it doesn’t ask a lot of nosy questions. Best of all, it gives customers an answer in about 30 seconds, so there’s no time wasted in the service drive.
Once approved, the customer chooses the simple interest loan that best meets their needs, all with fair, fixed rates that allow them to spread the payments over time. They put down a deposit, and work can be scheduled on the spot. There are no hidden fees and no surprise balloon payments down the road. It’s all very straightforward and easy to understand.
As for the dealership, they get paid right away via ACH, and there’s no hitch. If for some reason the customer doesn’t follow through on their payments, the dealership doesn’t have to deal with that. That’s between Sunbit and the customer.
Sunbit is having a measurable impact on dealership service centers across the country. On average, more than 90% of customers who apply are approved for financing, 70% of them follow through with the repair orders, and 35% of them come back – a sure sign of a satisfied customer. But some service centers have seen even more astonishing results.
“With an amazing 97% approval rate and 89% conversion rate, Sunbit has ultimately driven our average RO to over $1,500,” says Ashley Harrison, Service Manager at Checkered Flag BMW MINI in Virginia Beach, VA. “Sunbit has proven to be a very valuable amenity for our advisors to offer and provides the double benefit of increased parts and service sales and customer retention.”
Potential revenue doesn’t have to walk out the door for financial reasons. Find out how a modern financing solution can boost your customer satisfaction rates by helping more customers drive away happy.
Loans are made by Transportation Alliance Bank, Inc. dba TAB Bank, which determines qualifications for and terms of credit.