Fintech lending bnpl

4 minute 9 Aug, 2022

Buy Now Pay Later & Auto Repair: Why Service Centers Should Offer BNPL Options

Auto repair is a vital service to almost everybody in the country, and yet many consumers will hesitate to bring their car in for service. The primary reason for this is the bill associated with car repair, especially for higher-end vehicles. Sometimes a seemingly small computer failure in a car can cost north of four figures, which can keep consumers out of the shop for necessary repairs.

A car with its hood open that needs repair and will be financed by buy now pay later auto repair

Luckily, auto service providers have come around to offering POS financing, and buy now, pay later (BNPL) is one of its most accessible forms. There are several reasons why providers have adopted buy now pay later auto repair, and they are that BNPL:

  • Increases consumers’ buying power
  • Doesn’t impact credit
  • Accepts a wide variety of consumers
  • Can be easily implemented

Increases Consumers’ Buying Power

As with any financing product, BNPL gives consumers the money they need for any repair. Unfortunately, car issues usually come up unannounced, and this can leave consumers without the cash on hand to get the fix they need. Luckily, BNPL makes it so the financial burden can be spread out into multiple equal payments, often without interest.

That’s right, BNPL programs usually don’t charge interest fees if broken up into four payments. Any longer than that and providers will often charge interest, but typically far less than the rate incurred by traditional personal loans or credit cards. This makes BNPL a much more attractive option than either of the former.

BNPL Doesn’t Impact Credit

These payment programs don’t report to credit bureaus the same way as traditional loans, so they don’t cause the same problems for consumers. Oftentimes, customers are hesitant to take on a new card or loan because of the possibility of lowering their credit score. Fortunately for them, this issue isn’t present for BNPL users.

The only exception to this rule is when payments aren’t made on time. In cases like these, some providers will report it to credit bureaus to ensure they receive payment. However, for those who make all of their payments on time and in full, there will typically be no credit impact.

Accepts a Wide Variety of Customers

In addition to its lack of interest and credit impact, BNPL also has much more lenient credit requirements. While the degree of flexibility varies from provider to provider, firms like Skeps partner with a sizable network of quality lenders, increasing the likelihood of approvals for any given applicant.

Can be Easily Implemented

One of the greatest concerns for business owners considering implementing a new program is the effort, time, and expense it will take. Luckily, a BNPL partnership can be simple, fast, and very lucrative.

All business owners need to do is:

  • Identify a quality partner they’d like to work with
  • Reach out to request a demo
  • Agree to terms

All three of these steps can take place in a matter of a week or two. After that, deployment can be managed in one or two more weeks. Overall, the process is painless and quick, and BNPL programs can be easily embedded into any website, app, or billing platform.

Skeps Buy Now Pay Later & Auto Repair

Skeps offers a comprehensive, end-to-end consumer financing program that helps businesses modernize their entire payment process. We go above and beyond one-click payment, also offering a one-click application process for several different types of consumer financing, including:

  • BNPL
  • Consumer loans and leases
  • Branded credit cards

If you’re looking to partner with a forward-thinking fintech company that will keep consumers' eyes on the purchase while offering best-in-class financing, Skeps is the perfect fit.

Do you have more questions about buy now, pay later auto repair?
Request a demo or contact us at support@skeps.com!

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Auto repair is a vital service to almost everybody in the country, and yet many consumers will ...


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