Boulder, CO Confident Financial Solutions, (CFS) a consumer finance company that offers auto repair financing to service centers and their customers, today announced that due to the success of its auto repair financing program, and its highly effective service marketing integration, it has become a top choice for large dealer groups including Larry H Miller, Berkshire Hathaway (formerly Van Tuyl), Group1 and Rick Case. The company is experiencing strong growth and is now in about 1,100 retailers in 38 states, including over 400 franchised new-car dealers.
According to Richard Counihan, CEO of CFS, the recent growth is largely due to CFS highly-effective service marketing integration with top vendors including Dynatron and AutoLoop, along with new technology initiatives that have taken service financing results to the next level. We ensure that service financing is offered to customers at every possible opportunity. When the multi-point inspection is presented, it can now include information about how the repair could be more affordable by breaking cost into monthly payments. In some cases we can even show monthly payment options, similar to car payments in the F&I Office, as well as offer 60-day interest-free option. said Counihan. Our dealers can also include information about service financing with service appointment confirmations and reminders. By offering service financing in this way, and cleverly marketing it to the customer at every opportunity, our service centers are capturing more repair work and enjoying an increase in accepted recommendations as customers now have a workable way to afford it, Counihan added.
While program results vary from store to store, CFS financing produces up to 100 monthly applications submitted per service center. By offering financing for service work, CFS creates an untapped revenue generator for auto service centers and helps capture work that otherwise might go elsewhere. Many CFS strategic partner service centers see an average 20 percent increase in monthly revenues; an increase in ROs and decrease in Service Declines; and bigger ticket ROs as customers can now get ALL the repairs done including transmissions, tires, collision, insurance deductible and more. In addition, the program provides affordable payments based on simple interest rather than compounding interest; almost 50 percent customer approval rate; loan approvals as low as mid-500 credit scores; loan terms available for 12-36 months; and increased customer retention.
CFS provides a favorable alternative to credit card financing, resulting in increased credit approvals and immediate access to capital. The average CFS loan amount the dealership sees is about $1,500. Customers can be approved for up to $7,500 and 83% of loans approved are for amounts larger than the repair estimated, leaving room for any additional needed work. Customers apply online via a smart phone, tablet or computer and receive a credit decision in less than five minutes. Service centers get paid in 24-48 hours. With CFS, strategic partner service centers further increase activity on the service drive, increase revenue and enhance overall customer retention.