BOULDER, Colo. — Confident Financial Solutions (CFS)'s auto repair financing program has experience strong growth this year. It now has1,000 retailers in 36 states offering its product, including 410 franchised new-car dealers, according to a company press release.
In March of this year, the company reported a 378% year-over-year increase in the number of service centers using its service financing program.
According to the company, many CFS strategic partner service centers see an average 20% increase in monthly revenues; an increase in repair orders and a decrease in service declines. While program results may vary for every store, CFS financing produces up to 100 monthly applications submitted per service center, the press release stated.
The program provides affordable payments based on simple interest rather than compounding interest. Almost 50 percent customers who apply for service financing are approved, including customers with low- to mid-500 credit scores. The program offers loan terms of btween 12 and 36 months.
“It used to be that everyone had multiple credit cards in their wallet with plenty of room to cover one-time emergencies like an auto repair. In many cases, that isn’t true today. Credit cards have never been a good financial product for consumers and today they provide less help than ever; that’s where CFS comes in,” said John Dunning, CEO of CFS.
The average loan amount approved by CFS is $1,500. Customers can be approved for up to $7,500, with the company noting that 83% of loans are approved for amounts larger than the repair estimated, leaving room for any additional needed work, the company stated.
Customers can apply online for a loan through a smart phone, tablet or computer. Once the application is submitted, the customer can receive a credit decision in less than five minutes. Service centers are paid in 24-48 hours.