What is Buy Now, Pay Later?
We all know the story: a customer walks in complaining about a loud grinding noise, hoping they can just get their beaks replaced and on their way.
After an inspection, it turns out they have caliper sticking and need not just pads and rotors, but possibly a new caliper, new brake lines, and all the fluid and parts that come along with it.
What they expected to be a quick in and out routine job turned out to be quite an expense. And now here’s where the tricky part comes in: the customer is hesitant to approve the entire repair order.
The sticker shock of such a big repair they weren’t expecting can generally lead to customers picking and choosing what they want to repair so it fits their budget. And in some cases, this means sometimes putting off important repairs that could end up dangerous if ignored.
That's exactly where buy now, pay later comes in.
With our industry first offering of buy now, pay later via Affirm or Klarna, we make it easy for shops to get those expensive repairs approved by providing customers with the option to pay for the repair over time, while you get paid the same day.
Close Bigger Repair Orders
Here's the best part, there's no extra risk to your shop. You’ll get paid like you normally do on your transactions, while your customers now have the option to split up their car repair payments with either Affirm or Klarna to meet their budget.
And you’ll still see a host of new benefits, like:
- Get paid on time by allowing your customers to pay over time
- Make more money by increasing your Average Repair Order value
- Keep everything simple with one single trusted payment partner
Tekmerchant is all about consolidating your payment processing into one platform, simplifying the hassle of seeing all of your payments right in your shop management system.
And with buy now, pay later, shops can see a huge boost to their average repair order by meeting customers where they are, and giving them the option to pay at a schedule that fits their needs exactly.
Because they don't feel pressured to cover the cost upfront, customers are more likely to make those larger repairs with less hesitance.
In fact, according to Affirm, automotive businesses that leverage their buy now, pay later options see a +85% boost to average transaction size. Meaning, customers are spending up to 85% more.
So, not only do you make it easier for your shop to get paid, but you can boost your average ARO at the same time!
Customers Love Buy Now, Pay Later Options
Of course we have your customers covered, too. They’ll love the fact that:
- Payment options make it easy to cover larger, costly repairs
- There’s no credit checks and interest free payment options
- Your shop provides a modern buying experience they expect
Not only do they gain the flexibility of a payment plan to meet their needs and fit into their budget, but the process is even easier than usual.
Without any credit checks, and with an option of interest-free payments, customers can take advantage without worrying about meeting requirements, or paying back interest like a typical loan.
They can work with your shop to build out a plan that works for them, and trust that their repair is in the right hands.
Providing A Modern Customer Experience
You're also meeting them where they are.
With so many other businesses outside of the auto repair space offering buy now, pay later options, your shop can offer customers the same experience that they’ve come to expect, offering a truly modern customer experience with your modern shop management platform.
After all, if you can pay for your ice cream or pizza over time, why not your car repairs?
Already a Tekmetric customer and you want to streamline your payments? Talk to us today!
Not a Tekmetric customer? Learn how you can streamline both your shop and payments today!