Sunbit, the company building financial technology for real life, recently completed a survey of 1,100 fixed ops service professionals at more than 500 automotive dealerships in the US. The survey focused on the state of consumer financing, with findings that correlate with some of the biggest challenges currently facing the sector.
Key findings include:
Service drives are seeing increased service volumes.
While the average drive Sunbit surveyed has fewer than 5 advisors, they’re seeing more than 500 customers each month and executing nearly as many repair orders.
Economic uncertainty is taking a toll.
More than 75% of those surveyed reported that at least 1 in 4 customers verbally express concern with the cost of repairs. Additionally, the vast majority of those surveyed (nearly 70%) report that less than 50% of ROs are fully executed. And, nearly 25% of ROs are declined entirely.
Perceived financing gaps trouble advisors.
The majority of service drives surveyed report that they offer a financing option less than ¼ of the time. Traditional financing options have low approval rates and lengthy applications. As such, harried advisors working to close service agreements don’t want to further compromise acceptance rates, embarrass their customers, or lose precious time with long application processes.
Yet, in a recent Harris poll of more than 1,000 consumers, nearly 70% of respondents expressed interest in an option to spread the cost of necessary expenses (such as car repairs) over time.
Accessible financing can drive revenue – and customer satisfaction.
Based on Sunbit’s proprietary data, when customers are approved for financing, the RO is executed more than 70% of the time and nearly doubles in value, and the customer is more likely to come back for additional service. In fact, nearly one-third of drives surveyed report higher CSI scores thanks to good financing options.
Sunbit is the preferred partner of 14 OEMs offered in more than 6,000 dealerships and 1,500 independent service shops, and has partnered with 22 of the top 25 largest auto groups in the nation. In addition, Sunbit technology is fully integrated into leading customer experience platforms, including Xtime, Quik, Update Promise, and Everyware, making financing an integral part of the customer journey.
If you’re interested in reading the full report please click here, or come visit us at booth 6729 at NADA later this month.
Survey was conducted by Sunbit in Oct-Nov 2022 of 1,142 fixed ops professionals in the US.
Sunbit builds financial technology for real life. Our technology eases the stress of paying for life’s expenses by giving people more options on how and when they pay. Sunbit offers a next-generation, no-fee credit card that can be managed through a powerful mobile app, as well as a point-of-sale payment option available at more than 17,000 service locations, including auto dealership service centers, optical practices, dentist offices, veterinary clinics, and specialty healthcare services. Sunbit was included on the 2022 Inc. 5000 list. The financial technology company has also been named as a Most Loved Workplace®, Best Point of Sale Company, A N.A. Deloitte Technology Fast 500 company and as a Top Fintech Startup by CB Insights.
Loans are made by Transportation Alliance Bank, Inc., dba TAB Bank, which determines qualifications for and terms of credit. The Sunbit Card is issued by TAB Bank, pursuant to a license from Visa U.S.A. Inc. Use of the card is subject to the cardholder agreement.