When the cost for new tires and auto services is higher than your customers’ budgets allow, paying over time can help them get what they need now.
According to the Federal Reserve, 32% of U.S. consumers don’t have $400 to cover an unexpected expense. That’s why, when life happens, many of your customers need ways to pay over time. But for those with less-than-perfect credit, traditional financing may be out of reach.
In a recent survey, 42% of Americans said they were denied financing in the past year due to their credit score. That’s a significant portion of your potential customer base who may be leaving your shop empty-handed.
Customers with imperfect credit want the same access to goods and services that other consumers enjoy. They’re at your store or on your website and ready to shop. They just don’t have all the funds to pay up front.
By providing help to your customers when they need it most, you can strengthen relationships, build loyalty, and increase opportunities for repeat business. And that can mean more sales for your shop.Paying over time can be a lifeline for many of your customers, especially those with subprime credit. But is offering alternative financing right for your business? Here are answers to questions you may have about the subprime customer segment and your business.
Who has trouble qualifying for traditional credit?
What lenders consider subprime varies, but a FICO® score below 670 can be a roadblock to securing traditional financing. Having a subprime credit score is considered a relatively high credit risk for traditional lenders, which is why many of these consumers struggle to secure new loans, credit cards, and/or other financing.
Offering consumers with no credit or poor credit an alternative to traditional financing helps them get what they need while potentially increasing your average order value and opening new revenue streams for your business.
Will customers ask directly for alternative financing options?
Money is an uncomfortable topic for most people, and it's a particularly challenging conversation for people who wonder if they’ll be turned down for financing. If your customers are reluctant to begin a conversation about alternative financing, they may never know options exist. Don’t let consumers’ hesitancy – or yours – create lost sales opportunities.
With Snap Finance®, you can easily promote options to pay over time on your website and in your store. Customers can quickly apply using text or QR code, online or in-store, and receive a decision in seconds.
Can alternative financing grow my business?
Auto service providers stand to gain a significant revenue boost by offering payment options for tires, rims, or services. Because alternative financing providers, including Snap, consider factors other than scores from major credit bureaus, applicants of all credit types are more likely to get approved. More approvals mean more opportunities to close sales and increase customer loyalty.
Say hello to more customers with Snap
Snap partners with businesses like yours to help more customers get the tires, rims, and auto services they need now. Snap looks beyond traditional credit scores, helping more customers get approved for our lending and lease-to-own financing solutions.1
Learn what Snap can do for your business. If you’re ready to reach more customers, visit Snap Finance to get started.