AAMCO is working with LoanHero to provide enhanced consumer financing options to its franchisees systemwide.
The company is in the initial stages of rolling out the new consumer finance technology platform, designed to allow customers to submit one credit application to access multiple lenders in order to optimize consumer and merchant terms and maximize loan approval rates.
“This new, robust consumer financing program is part of a broader strategy to significantly improve our franchisees long-term profitability,” said Jim Gregory, CFO of AAMCO Transmission, Inc. “With LoanHero, we’ve found the right portfolio of lenders that will allow our customers to receive instant approvals, while providing fast payment to our franchisees. Through our testing, AAMCO franchisees have already experienced a significant increase in average comp store sales, in addition to a jump in loan approval rates and average approval amounts for customers. We expect the impact on store performance to increase as the program continues to roll out systemwide. It’s truly a win-win situation for everyone.”
Through this partnership, customers have the option to apply for a loan for their automotive repair services via their web browser or mobile device through a pre-approval process that gives them access to a variety of lenders. As a result, AAMCO will become more in line with other industries, having a comparable average ticket size, that process around 50 percent of sales via credit as compared to AAMCO’s current rate of roughly 10 percent.
“AAMCO understands the value and impact consumer financing can have on its franchisees’ businesses,” said Derek Barclay, LoanHero president and co-founder. “LoanHero’s streamlined and seamless technology will not only help increase sales, but attract new customers by allowing AAMCO to stand out from the competition.”
Sameer Gulati, who owns one AAMCO service center in San Francisco, was one of the first of nearly 50 franchisees to test the new platform at their service centers.
“In the past, my staff would have to complete several applications for multiple lenders, and now, they are enjoying having a centralized application platform with a multi-lender solution. The entire process is very straightforward and more efficient than ever before,” said Gulati. “I’m very pleased that AAMCO continues to listen to its franchisees and has taken the initiative to improve financing options for our customers.”