From petrolheads to casual motorists, vehicle owners take a certain amount of pride in their cars. For many, buying a car is just the first step; some motorists go even further, choosing to mod their vehicle or buy accessories to enhance the driving experience. Others are tech lovers who want the latest equipment in their new set of wheels.
It all points to car owners spending more money even after driving off the dealership's driveway. Whether you sell car accessories or are a garage offering modifications, providing finance at checkout can unlock buying power for customers and help increase your sales. Here, we look at why you should give car-loving customers finance options at the checkout.
Finance encourages confidence
Not all customers want to pay the full price in one go, even if they can afford to do so. Many prefer spreading the cost, choosing to pay over a set amount of instalments instead. By offering flexible finance options like buy now, pay later (BNPL), you can empower those shoppers to purchase the items they want with a payment method that suits their needs.
60% of consumers say they are likely to use POS financing over the next six to 12 months. Giving shoppers their preferred means to pay will stand you in good stead and encourage repeat purchases as they are more likely to buy from an auto retailer that offers their preferred payment methods.
Sell higher-priced items
Finance options ease the burden of paying hefty fees upfront. And when it comes to car-related products, customers often spend thousands of pounds. With finance, however, they can spread the cost over several months and avoid forking out large sums in one go.
It means you can sell higher-priced car products and increase your store’s average order value. Most brands offering flexible finance see an uptick in order values through selling higher-priced items thanks to the payment flexibility offered by BNPL and similar credit options. It's a smart way to sell more, increase order value and drive more business for your automotive store.
Reduce cart abandonment
Whether you're selling car parts or consumer electronics, companies from a wide variety of industries struggle with checkout drop-offs. Customers can reach the final stage only to have reservations at the last minute.
Offering finance options at checkout is one of the best ways to combat drop-offs. Again, it allows shoppers to spread the cost and pay on their terms. There's no need for a shopper to feel burdened by paying large sums of money in one go thanks to flexible payment options that let them better manage their finances.
Broaden your customer appeal
An increasing number of shoppers are buying from businesses offering alternative payment options. There will always be those customers who want to buy your car products but don't feel comfortable paying the total amount at checkout.
By offering finance, you ensure as many people as possible can find a way to purchase your products and services. Consequently, you can improve cash flow, build customer loyalty because you're meeting their needs and increase the brand's overall reputation among shoppers. Finance options allow you to appeal to a wide range of customers, meaning you're covering all shopper types.
Car owners are already familiar with finance
Most cars in the UK are purchased with finance, be it a personal loan, hire purchase or personal contract purchase. Therefore, there's every chance that your shoppers are already familiar with using finance to buy products.
Take advantage of their know-how and offer finance for smaller car-related purchases, such as DAB systems, bike racks for cars, upgrades and more. If a shopper is already familiar with finance, they'll feel more confident using it again and will look for companies offering this option.
Set yourself apart
If you sell car-related products and services, offering finance can be the difference between selling higher-priced items and missing out on a sale altogether. As technology evolves, shoppers are choosing to use companies that offer better and more flexible ways to pay. You can meet those demands head-on and be the company that car-loving customers shop with – not just because they love cars but also because they love the flexibility your store offers them at checkout.