February 2021

P ayment plans are not a new idea. Washing machine? Boiler? There’s a service plan for that. If you buy a new car, or even a used car, from a franchised dealer, many will have a plan set up to keep the customers costs down, and keep them coming into the service department. The one area where it has not really gained traction in a major way is within the garage sector. Will the unique circumstances of 2020 and 2021, change that though? With many people still on furlough on 80% of their usual income, and many more wracked by seemingly endless financial uncertainty, looking to control spending on vehicle repairs could look like an attractive option. A number of established organisations in the sector have already set up schemes that you could take up, effectively an off-the-peg solution. We spoke to some of them to see what is on offer. Footing the bill “35% of consumers say their income has taken a hit as a result of the Coronavirus outbreak,” said Colin Cottrell, Marketing and Central Operations Director at LKQ Euro Car Parts. “Many might find it difficult to cover the cost of repairs to their vehicles as a result, but when access to a car is vital to the livelihoods of a lot of people, they need to find a way of footing the bill. “Giving customers the option to take advantage of short-term financial support is critical to ensuring business continues to come through the workshop doors – and so that cost doesn’t become a barrier to drivers accessing the services they need to stay safe and mobile. “That’s why we’ve partnered with Payment Assist, which provides plans for drivers to spread the cost of a one-off bill or purchase over four equal instalments, with no fees attached. This is something we proactively promote to garages, so they can offer interest-free loans and help to relieve the financial burden their customers may be under, while ensuring they can still get the job done. There’s no credit check required for any jobs under £1,000, and only 25% of the total bill needs to be paid upfront.” Explaining how if works, Colin added: “Garages just need to visit www.payment-assist.co.uk and enter their unique business details, before setting up their agreement with the customer. If the application is successful, the garage will receive confirmation that the customer has been billed for their first payment, as well as confirmation of future payment dates, helping them to carefully manage their own cashflow.” Three ways According to Andy Robson, Parts Operations Director at PSA Group, Eurorepar Car Service is committed to offering customers three ways to pay: “It’s good to see that the motor trade is moving with the times and keeping up with the consumer trends that are shaping other sectors. A good example is the growth of flexible payment options to meet the growing expectation that a customer should have a choice of payment methods to suit their financial situation. “Our national network of Eurorepar Car Service (ERCS) centres, for instance, is offering customers the ability to pay the old-fashioned way when the work is completed, or pay in more manageable, regular instalments as part of the Drive Now Pay Later initiative. Later in 2021, we will also be giving customers a third way to pay: by signing up to a service plan. Having three ways to pay means that customers will not be left battling an unaffordable one-off payment, even if the work itself has been carried out to a high standard. “ERCS centres have so far reported an overwhelmingly positive reaction to the Drive Now Pay Later initiative. Essentially, the idea is that customers can spread service and repair bills of more than £50 across four equal payments. This flexibility means that vital repair work, which might otherwise have been delayed or cancelled, can be carried out at the 8 AFTERMARKET FEBRUARY 2021 BIG ISSUE www.aftermarketonline.net I LOVE IT WHEN A PLAN COMES TOGETHER Payment plans may have found their moment; What are the options for garages looking to help their customers spread repair costs?