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Posted

Hello all shop owners. An idea hit me last night that may help me get above my competition in town for tire. In house financing new ones. I was wondering if anyone else was doing this? Looking for information on handling payment dates, Interest, etc.



Posted

To my way of thinking there would actually be less risk in financing higher margin business (i.e. repairs) than tires. On a $500 set of tires you will probably make less than $150 and the out of pocket costs may be $350. It will be an easy way to get a lot of money at risk.

There is a shop 40 miles from here. They Take a 350 set of tires and charge 900 for them stretched out over 6 months. I think its a check hold program?

Posted

There is a shop 40 miles from here. They Take a 350 set of tires and charge 900 for them stretched out over 6 months. I think its a check hold program?

That's not a bad plan.... with 350 down and the rest on payments. I'm not a bank, and don't want to be. I can turn that same 350 into 900 in weeks vs. Months. On the other hand, if you are in the position of having sufficient cash on hand laying around doing nothing for you, then being a bank might make sense for you.

 

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Posted (edited)

There is a software program I used in the past to do this type of business. Here is the link: http://www.notesmith.com/

 

Now, consider the type of customer that you will be dealing with, (there is no easy money, you have to work for it no matter what), if you have no experience chasing money, I would suggest you reconsider, such low margins on tires, and the regulatory hassles may not be worth it, but only you know your numbers and risk tolerance.

Edited by HarrytheCarGeek
  • Like 2
  • 2 weeks later...
Posted

There is a software program I used in the past to do this type of business. Here is the link: http://www.notesmith.com/

 

Now, consider the type of customer that you will be dealing with, (there is no easy money, you have to work for it no matter what), if you have no experience chasing money, I would suggest you reconsider, such low margins on tires, and the regulatory hassles may not be worth it, but only you know your numbers and risk tolerance.

With a check hold system, You pretty much get all your money right there, you just stretch it out over a few months instead of one lump sum.

Posted

With a check hold system, You pretty much get all your money right there, you just stretch it out over a few months instead of one lump sum.

 

There are some issues with this in New Jersey, we could not hold a postdated check, etc.

Posted

We take post dated checks all the time. Loaning money may mean never getting paid and again never getting paid after winning a judgement, but a post dated check is backed by the sheriffs dept if it bounces.

 

A better way is to get hooked up with a credit card company that allows you to give instant credit. There's some hoops to jump through but it gets you paid instantly and tires rolling out the door easier

Posted

We take post dated checks all the time. Loaning money may mean never getting paid and again never getting paid after winning a judgement, but a post dated check is backed by the sheriffs dept if it bounces.

 

A better way is to get hooked up with a credit card company that allows you to give instant credit. There's some hoops to jump through but it gets you paid instantly and tires rolling out the door easier

I get flyers in the mail about synchrony. nobody ever contacts me.

  • 2 weeks later...
Posted

Tires are so competitive around here - especially with Sams and WalMart selling them that I can imagine being able to make a sale with that kind of markup. It seems they could go anywhere in town and beat that price by a long shot, and if the only reason they are willing to pay an exorbitant price for them is to drag out payments for 6 months.....it seems likely that you probably wont get paid. Seems like a shaky system to me. As someone said, Syncrony bank has a system, and our NAPA offers an in house credit card with 3/6/12 month options (to its Car Care Centers) depending on how much they spend. Much better option. You get paid. They collect just like a credit card. But they have to qualify...which may be a problem if they're financing tires for 6 months. Just my .02

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  • Have you checked out Joe's Latest Blog?

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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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