When a car is damaged, deciding whether to repair it or replace it can be a tricky choice for many drivers. A recent survey has shed some light on the tipping point at which motorists might decide not to repair their damaged cars and why they might replace them instead. If you run a garage or repair centre, getting a handle on this tipping point and offering flexible finance options can help to increase repair rates. That means your customers can get their cars back on the road rather than feeling forced into an expensive write-off.
Car Repairs Can Be a Real Financial Struggle.
It’s no surprise that the rising cost of car repairs leads people to toy with fixing versus replacing a damaged car. When something major like engine repairs, wheel repairs, or bodywork is needed, a lot of drivers face that same dilemma. The survey – conducted by CarGurus – interviewed 1,000 motorists across the UK.
It found that an unexpected repair bill of £772 is one of the three breaking points that prompt drivers to consider their car a write off, and look for a new vehicle. Once repair costs approach or exceed this amount, the financial burden can feel overwhelming, especially for those with tight budgets. This explains why nearly three-quarters (72%) of participants in the study said they’d feel stressed at the thought of having to spend money on unplanned car repairs.
Why Do Drivers Go for a Replacement Over a Repair?
There isn’t any single answer to this question, but it seems that the decision to replace a car instead of repairing it stems either from financial limitations or the perceived value of the vehicle. For example, if a car is worth £3,000 and the damage requires £2,500 worth of repairs, it’s easy to understand how this might be seen as a bad investment. They might believe that spending nearly the car’s worth on repairs doesn’t make sense, especially if it’s an older car that might need more repairs in the future.
Convenience could be another key factor.
The cost and hassle of repairs – and the fear of recurring issues – can make buying a new car seem like an easier and more financially sensible option. This is exacerbated by the fact that many new and second-hand dealerships offer finance options to make accessing a new car easier. Immediate financial pressures of car repairs can make it feel difficult or impossible to spend a large, upfront sum on car repairs.
That’s Where Flexible Finance Options Can Help
Flexible finance solutions can help motorists take the necessary steps to repair their damaged cars without having to face the full financial burden upfront. They provide a way to spread the cost of repairs over a manageable period, which makes paying for big jobs like engine repairs, bodywork, or wheel repairs much more feasible.
For lots of customers, this is a massive difference.
The ability to break down the cost of car repairs into smaller, more affordable payments might be the deciding factor between repair and replacement. If you offer interest-free, straightforward payment plans, you can ease the financial strain of the repairs and make it easier for drivers to choose fixing their car over scrapping it and getting a new one.
Why It’s Important to Understand the Tipping Point
If you own a repair centre or garage, you’ve got to get a handle on your customers’ tipping point when it comes to the cost of repairs. This is mainly because it helps you tailor your services and makes them more accessible, but there are other brilliant advantages, too.
Flexible finance could improve retention and trust.
Across sectors, we know that the outlook of customers changes when they feel valued and seen. You can promote a real sense of loyalty by showing your customers that you take their concerns seriously and that you identify with their real-life situations. This boosts confidence both in the repair process and the people who provide it.
Looking for a Flexible Finance Partner?
When your customers are faced with high costs, Payment Assist can help you to help them. Our service helps to break down substantial repair fees into manageable, interest-free monthly payments. Instead of feeling overwhelmed, your customers gain confidence, trust, and a sense of control over their finances.
With Payment Assist, you can:
Offer Interest-Free Payments: Customers pay no additional charges.
Maintain a Simple Application Process: Quick, transparent steps.
Provide Customisable Plans: Tailor instalments to each customer’s circumstances.
Promote Customer Retention: A supportive payment structure encourages repeat visits.
To find out more about how Payment Assist can support your business, get in touch with us today. Our team will be happy to help you.
FAQ
What kind of costs can Payment Assist cover?
Most common repair expenses, from minor jobs to bigger mechanical ones, can be covered.
Are payment plans complicated to arrange?
No, arranging a plan is very straightforward. You can find out more here.
Is interest applied over time?
Payment Assist provides interest-free instalments, keeping the total cost unchanged.
How quickly can a plan start once approved?
Approved plans begin promptly so that essential repairs can proceed without delay.