Synchrony Sees Rising Demand for Auto Service Financing
Synchrony offers credit card programs across a variety of industries, including the automotive aftermarket.
The Synchrony Car Care card has its roots in the old CarCareOne credit card 35 years ago. The card was renamed when Synchrony parted ways with GE Capital in 2015.
The program, with nearly 5 million cardholders, has grown to 1 million auto-related outlets nationwide, up from 25,000 in the past four years, the company said.
Key partners include Discount Tires, Pep Boys and NAPA AutoCare Centers. The credit card program is available to businesses with one or more locations, he said.
“One thing that helps tire companies a lot is not only helping the consumer make the initial purchase and helping them afford it more easily regardless of their budget – so they can buy four tires instead of the one that may have exploded – it allows them to have a way to pay for all of their car maintenance needs over time,” he said, adding: “There’s a much higher incidence of repeat sales when they also have a line of credit.
The three main benefits that stores gain from offering a private label credit card, which often has the store’s name embossed, are: it can increase the likelihood that the consumer will accept the store’s repair recommendation; it can increase the amount of the purchase because the card gives the consumer more purchasing power; and the consumer tends to return to the store to buy more often, Roe said.
The company said the average first purchase of Synchrony Car Care is $916 and says about 80% of credit card sales are repeat purchases.
Last year, Synchrony expanded its Car Care card to be accepted at all participating auto-related locations.
“We have now expanded the network’s opportunity to be accepted at every automotive retailer nationwide, including parts, tires, dealerships, gas stations, car washes, ride-sharing and even recently the insurance,” Mr. Roe said.
He said having a dedicated credit card for car maintenance is a benefit because some consumers may not have enough credit on their general credit card or they may not have another card. or the other cards don’t offer six-month (or even 12-month) interest-free financing.
The card is engraved with the name of the store and the Synchrony Car Care logo for use in the network. Since Synchrony is a partner of Discover Card, the Car Care Card is accepted wherever Discover is accepted in the automotive segments.
“It really broadens the appeal because they can use it for gasoline, they can use it for tolls, they can use it for car washes. And that higher purchase frequency keeps the card in mind so they are more likely to go back to the merchant where they originally got the card. It’s in their wallet, it’s not in their drawer,” he said. declared.
Merchants pay a processing fee, which varies by location and affiliation, for the 6-month, 12-month, or 18-month funding option. Six-month financing is automatically available on all purchases over $199. Merchants may choose to offer longer funding options for promotional periods.
In addition to credit financing, Synchrony said it offers businesses turnkey tools to manage, market and grow their businesses, including:
- An online business center for all consumer finance sales and operational tools;
- A learning center for employees to learn how to complete credit applications, with self-paced training videos, PDFs, and online courses;
- An Advertising Center to help drive more online and in-store traffic by helping merchants create personalized in-store materials and online assets, including signs and banners;
- Synchrony CONNECT, which offers webinars, special events, one-on-one consulting opportunities, marketing and operational leadership consulting;
- Synchrony Ignite, an online rewards program to encourage store employees to promote credit cards; and
- MobileID, which allows consumers to apply for credit through their phone, minimizing the amount of information consumers must enter manually and creating a faster approval process.