7:30 am, March 13, 2023
Used car sales continue to soar after rising for the eighth month in a row.
The average cost of a used car has risen by over £4,000 since the start of the pandemic. The rise in demand has created added opportunity for dealerships to sell more value-added products (VAPs) and increase their revenue further.
With inflation still over 10 per cent, many customers are struggling to have enough disposable income to cover both the deposit and the VAPs that they think would be suitable to protect their vehicle.
This is where buy now pay later (BNPL) comes in. Offering it as a payment option can easily help your dealership sell more VAPs.
The option for customers to spread the cost completely interest-free enables your sales team to accurately sell VAPs that would be beneficial for the customer and their vehicle without the concern of price meaning the difference between a sale or no sale.
How Bumper can help
Bumper is the leading automotive-focused BNPL provider and can help you sell more VAPs in your sales department.
- Increase VAP sales by 15 per cent
- Fund multiple products on one application (Gap, smart, paint protection, accessories, etc)
- Can offer monthly payments post-sale to increase conversion
- Fast and simple application
- Bumper assumes risk of credit
- Interest-free and no fees for the customer
More than just BNPL
Bumper can provide more than just BNPL. It’s a payments provider that also offers PayNow (payments in full) and, most recently, open banking.
Open banking enables dealerships to pay less for transactions and enhances cash flow with instant payments and cleared funds.
This reduces the need to rely on PDQ machines and interchange fees.
Acorn Motor Group has been using Bumper’s open banking for the past three months and said it had noticed an immediate impact.
Samantha Platt, group aftersales director, said: ‘Bumper’s open banking solution has enabled Acorn Motor Group to reduce our reliance on PDQ machines and make huge savings on card fees.
‘Over the first three months we’ve saved £15,000 alone and are on track to save £60,000 this year.
‘Open banking was easy to set up with the Bumper team and has had glowing reviews from our customers.’
Open banking also reduces the risk of fraud and eliminates Section 75 chargebacks.
Higher payment security and increased transaction speeds are not only beneficial to dealerships but also to customers – enhancing the payment experience whether they choose to pay in full or spread the cost interest-free, making it a win-win situation.
Who is Bumper?
Bumper is an automotive-focused digital payment platform that offers PayLater and PayNow services.
It leverages proprietary AI-powered technology that facilitates real-time lending decisions.
The solution enhances the conversion of aftersales revenue opportunities, reduces the need to discount and increases repeat custom.
Bumper has featured in the Financial Times Top 1,000 fastest-growing companies in Europe for the third year in a row.
It’s backed by Porsche Ventures, Jaguar Land Rover – InMotion, AutoTech Ventures, Revo Capital and Itochu to help support its expansion across the European automotive sector.
For more information on how Bumper can improve the performance of your dealership, visit www.bumper.co.uk, email [email protected] or phone 0800 612 0946.
