February 2021

right time.” Andy added: “What it boils down to is adopting a customer-centric approach to the way you do business and taking pride in offering customers something that is truly of value to them. With Drive Now Pay Later, we are giving people the peace of mind that their vehicle is in a safe state of repair, while affording them the flexibility to pay their bill over a manageable period. That’s exactly what people need in these uncertain times.” Preferred Commenting on their experience with Drive Now Pay Later, Craig Williamson, a Director at Cheshire- based ERCS centre Ignition Autos said: “The initiative has proved very popular with our customers so far. It’s been essential for many this year, but we have also seen a lot of people use it as their preferred method of payment regardless of whether they could afford the up-front cost. It makes a lot of sense really. It’s interest-free and people are used to paying things like credit card bills and subscriptions on a monthly basis. It’s been a great addition to our offering.” ERCS has partnered with EMaC to deliver the Drive Now Pay Later initiative. Liam Finney, Director of Commercial Partnerships at EMaC, said: “Our Drive Now, Pay Later+ product is a flexible, interest-free monthly payment option that allows consumers to spread the cost of unexpected vehicle repairs. It not only enhances business revenue and profitability, but also builds lasting relationships and increases consumer satisfaction. “As the UK’s leading Service Plan provider, we immediately noticed the similarities with our core Service Plan product and welcomed the opportunity to add a complimentary solution to our portfolio.” Liam added: “Our network love being able to offer consumers the option to spread the cost of vehicle repair work – so much so that many now use DNPL+ as their primary payment option for red/amber work, service, accessory and value-added product purchases.” Timely There is more than one shape for plans. For example, Servicesure offers its 554-strong network of member garages the option to sign up to Auto Service Finance (ASF), an interest-free credit payment facility. The nationwide garage programme, run by The Parts Alliance, launched its partnership with ASF in 2018 and since then has financed more than £1.2m in repair costs. ASF enables customers to cover the expense of vehicle repairs by spreading payments over six months and is available to customers making transactions between £60 and £3,000. Commenting on the offering, Servicesure Head of Garage Programmes Paul Dineen said: “We know many people in the UK are suffering financial hardship after being impacted by the pandemic, so 2020 was a very timely and significant year for us to have the partnership with ASF in place. “It allows our garage members to offer what could be a crucial lifeline to customers who may struggle to pay for essential repairs in one go. Safety is the most important aspect of any vehicle and we don’t want people putting off necessary work because of inflexible payment options. “Offering people the opportunity to spread the cost of repairs through interest-free credit could be the difference between keeping their vehicle on or off the road, so it’s a tremendously beneficial scheme for our Servicesure members to able to offer customers.” Paul continued: “Those whose economic situation has been negatively impacted by the pandemic are most likely to benefit from this option of interest-free credit in the short term. In addition, it represents an important step forward in the industry. “With most transactions in our lives, we’re now accustomed to having the flexibility to choose how we pay for them. Furniture, cars, holidays, mobile phones, boiler servicing; these are all common outgoings that we associate more with flexible instalments than rigid lump-sum payments. “This level of flexibility isn’t currently part of the culture in the automotive aftermarket. However, we expect these kinds of payment solutions and interest-free credit to become far more common in our industry in the years ahead. Why would people shell out big payments for vehicle repairs in one go when they could approach the transaction the same way they’re used to in every other element of life?” Tremendous The average invoice value of an ASF transaction with a Servicesure garage is currently £639 and 62% of its transactions are for vehicles over nine years old. “From a garage’s point of view,” observed Paul, “there’s no disruption to cash flow because ASF pays them in full within seven days. The main challenge for a garage comes in a customer not necessarily expecting to have this option of flexibility, but reservations around trust are typically easy to overcome in conversation. “Any customer driving away from a garage is doing so with total faith that their vehicle is safe to drive. That’s a tremendous amount of trust placed in the professionals in our industry and it’s a strong foundation for a garage to build on when it comes to the payment options they offer.” Paul concluded: “The number of new vehicle registrations dropped significantly in 2020 and we know the UK car parc is only getting older, so the automotive aftermarket has a strong future. What’s important is for independent garage owners to put themselves in the best possible position to win this work, so offering flexible payment solutions can only benefit them in that respect.” 10 AFTERMARKET FEBRUARY 2021 BIG ISSUE www.aftermarketonline.net What it boils down to is adopting a customer-centric approach to the way you do business ”