Sell More Repairs With Easy Buy Now, Pay Later Options

The article promotes Tekmerchant's Buy Now, Pay Later options as an easy way for automotive repair shops to increase sales by offering flexible payment solutions, highlighting success stories like Metro Motor's growth in average repair orders across multiple locations.

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See how Metro Motor grew their average repair order to $800 across 19 shops with Tekmetric

Under the Lift: Stories from the Automotive Frontier (New Episode)

Product Updates

Sell More Repairs With Easy Buy Now, Pay Later Options From Tekmerchant

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What is Buy Now, Pay Later?

We all know the story: a customer walks in complaining about a loud grinding noise, hoping they can just get their beaks replaced and on their way.

After an inspection, it turns out they have caliper sticking and need not just pads and rotors, but possibly a new caliper, new brake lines, and all the fluid and parts that come along with it.

What they expected to be a quick in and out routine job turned out to be quite an expense. And now here’s where the tricky part comes in: the customer is hesitant to approve the entire repair order.

The sticker shock of such a big repair they weren’t expecting can generally lead to customers picking and choosing what they want to repair so it fits their budget. And in some cases, this means sometimes putting off important repairs that could end up dangerous if ignored.

That's exactly where buy now, pay later comes in.

With our industry first offering of buy now, pay later via Affirm or Klarna, we make it easy for shops to get those expensive repairs approved by providing customers with the option to pay for the repair over time, while you get paid the same day.

Close Bigger Repair Orders

Here's the best part, there's no extra risk to your shop. You’ll get paid like you normally do on your transactions, while your customers now have the option to split up their car repair payments with either Affirm or Klarna to meet their budget.

And you’ll still see a host of new benefits, like:

Get paid on time by allowing your customers to pay over time
Make more money by increasing your Average Repair Order value
Keep everything simple with one single trusted payment partner

Tekmerchant is all about consolidating your payment processing into one platform, simplifying the hassle of seeing all of your payments right in your shop management system.

And with buy now, pay later, shops can see a huge boost to their average repair order by meeting customers where they are, and giving them the option to pay at a schedule that fits their needs exactly.

Because they don't feel pressured to cover the cost upfront, customers are more likely to make those larger repairs with less hesitance.

In fact, according to Affirm, automotive businesses that leverage their buy now, pay later options see a +85% boost to average transaction size. Meaning, customers are spending up to 85% more.

So, not only do you make it easier for your shop to get paid, but you can boost your average ARO at the same time!

Customers Love Buy Now, Pay Later Options

Of course we have your customers covered, too. They’ll love the fact that:

Payment options make it easy to cover larger, costly repairs
There’s no credit checks and interest free payment options
Your shop provides a modern buying experience they expect

Not only do they gain the flexibility of a payment plan to meet their needs and fit into their budget, but the process is even easier than usual.

Without any credit checks, and with an option of interest-free payments, customers can take advantage without worrying about meeting requirements, or paying back interest like a typical loan.

They can work with your shop to build out a plan that works for them, and trust that their repair is in the right hands.

Providing A Modern Customer Experience

You're also meeting them where they are.

With so many other businesses outside of the auto repair space offering buy now, pay later options, your shop can offer customers the same experience that they’ve come to expect, offering a truly modern customer experience with your modern shop management platform.

After all, if you can pay for your ice cream or pizza over time, why not your car repairs?

Already a Tekmetric customer and you want to streamline your payments? Talk to us today!

Not a Tekmetric customer? Learn how you can streamline both your shop and payments today!

👉 Ready to grow your automotive business? [Book a personalized Tekmetric Demo Here]

FAQ

Were you looking for a vendor to reorder carbon copy auto repair receipt templates when you found this blog? Maybe you’ve already spent a few hours at your computer, searching for the right auto repair receipt template. But none of the templates you’ve seen looks right for your shop. It’s hard to find a perfect fit. You need a template that is fast to fill, inexpensive, flexible enough to work for any sale, and easy for you and your customers to understand. That’s a tall order.

But all too often, standalone templates fail to meet the complex business needs of modern auto repair shops.

You have already made positive changes toward getting organized by searching for and maybe even trying out a variety of new templates. But what if you could save time and improve accuracy with a system that did all the work of writing and tracking receipts for you?

Think about how you currently find the information you need for your receipts and fill them out. Maybe you use carbon copies. Maybe you type the receipts out. But you’re probably getting the information from your invoices, which themselves reflect estimates. That’s three documents to write per customer, which can quickly add up to a lot of time spent on paperwork.

Auto repair shop management systems are capable of populating receipts with payment information and prices from estimates and invoices in seconds to create consistent receipts and a more positive customer experience.

We know that change can be hard, but it’s worth it.

Let’s analyze some of the ways your current auto repair receipt templates might be holding you back and how an auto repair shop management system can improve your customer experience, simplify work at the shop, and lead to more business growth for you and your team.

Thought Leadership

Go Beyond an Auto Repair Receipt Template with Tekmetric

July 18, 2023

Read time: 2 min

Starting a mechanic shop is one of the most rewarding moves you can make in your career. The auto repair industry continues to grow, and whether you're a seasoned veteran or a newcomer with a solid vision, opening an automotive repair shop can lead to a thriving small business with long-term success. But like any worthwhile venture, it all begins with a solid plan and a deep understanding of what it takes to turn your technical skills into a profitable auto repair business.

In this guide, we'll walk you through the key steps and considerations for launching your own auto mechanic shop, from writing a business plan to hiring your first technician. Whether you're dreaming of a full-service car repair shop, a mobile mechanic business, or a specialty shop, these tips will help you lay a strong foundation.

How to Start an Auto Repair Shop (Complete Guide) - YouTube

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1. Form a business plan

Every great mechanic business starts with a solid business plan. This is your roadmap—your blueprint for success. A comprehensive auto repair shop business plan should detail everything from your services (like oil changes, diagnostics, or engine rebuilds) to your target market, competition analysis, pricing strategies, and long-term growth goals.

There are nine steps to creating an automotive repair shop business plan that will help you achieve your business goals—from owning one auto repair shop to becoming a multi-shop owner.

1.Write an executive summary
2.Describe your shop
3.State your business goals
4.Describe your products and services
5.Do your market research
6.Outline your marketing and sales plan
7.Perform a business financial analysis
8.Make financial projections
9.Create a plan for growth and expansion

Your business plan should also identify your niche: Will you cater to performance cars or offer quick turnaround auto repair services? The more specific your direction, the easier it’ll be to attract the right potential customers and stand out in a competitive market.

2. Legal entity setup

Once you have created your master business plan, you should start on your legal entity setup. Choosing the right business structure for your mechanic shop impacts everything from taxes to liability to how you pay yourself.

For most shop owners, a limited liability company (LLC) offers a smart balance of protection and flexibility. It separates your personal assets from your business liabilities, which is key in the event of lawsuits or debts.

That said, sole proprietorships and corporations also have their place. It’s wise to consult with a business attorney or accountant to understand which business structure best fits your goals and risk tolerance.

Once you’ve picked a structure, you’ll need to register your business name with the state and secure an Employer Identification Number (EIN) from the IRS.

3. Start up funding

Getting your mechanic shop off the ground isn’t cheap. Between diagnostic equipment, insurance coverage, car lifts, rent, and employee salaries, startup costs can quickly add up. Whether you’re building from scratch or taking over an existing auto repair shop, you’ll likely need some outside funding.

The Small Business Administration ( SBA) is a great place to start. They offer affordable business loan options for entrepreneurs, particularly those opening a small business. You might also explore equipment financing, credit lines, or partnerships with investors.

When seeking funding, having a clear business plan will be essential. It shows lenders and backers you’re serious, prepared, and capable of making your auto repair business profitable.

4. Pick your location

Your car repair shop’s location can make or break your success. Look for high-visibility spots near residential areas, highways, or commercial districts. Proximity to dealerships can also bring in new customers.

But it’s not just about visibility. Make sure your space has the right zoning, sufficient square footage, and proper infrastructure—like garage bays, ventilation, and parking. Consider future expansion too. Is there room to add more lifts, services, or staff down the line?

5. Permits and licenses

No matter where you’re located, you’ll need to secure the proper business license and permits before you can open your doors. Requirements vary by city and state but often include:

A general business license
Zoning and occupancy permits
Environmental or hazardous waste disposal certifications
Auto repair facility permits

Depending on your services, you may need specific endorsements for emissions testing or safety inspections. And if you plan to sell tires or parts, a resale certificate might be required.

Check with your local municipality or state licensing board to make sure you're covered. Failing to secure the right documentation could shut your auto repair shop down before it gets started.

6. Business bank account

Once your shop is registered, it’s time to set up a dedicated business bank account. Mixing personal and business finances is a rookie mistake that creates accounting headaches and jeopardizes your liability protections.

With a business account, you can secure better interest rates, more credit, and other benefits. For example, with a dedicated business credit card, your shop can establish a credit history which can be useful when trying to raise more money in the future.

Choose a bank that understands small business needs and offers services like business credit cards, payroll integration, and mobile banking. Your business bank account will help you track revenue, manage expenses, and simplify tax season.

7. Business insurance

Insurance isn’t just a checkbox—it’s your safety net. At a minimum, your mechanic shop should carry general liability insurance, which protects you against accidents, injuries, and property damage.

But that’s just the beginning. Depending on your services, employees, and location, you may also need:

Garage keepers insurance
Workers’ comp
Tools and equipment coverage
Commercial property insurance

As your shop grows, your coverage will need adjusting. Consult with an insurance professional if you are unsure of how much coverage you need.

8. Hire employees

Your team is the engine of your auto repair business. Hiring the right technicians, service advisors, and administrative staff makes all the difference in customer satisfaction and shop efficiency.

Look for candidates with relevant certifications, strong work ethics, and a passion for cars. Whether you’re hiring entry-level techs to handle oil changes or master mechanics for complex diagnostics, make sure your crew reflects your shop’s standards and values.

Lastly, offer competitive pay and growth opportunities to help retain your workforce long-term.

9. Marketing your shop

Now that your auto repair shop is ready, you need a comprehensive marketing strategy to attract and retain new customers. A strong online presence helps shop owners build trust and establish authority. Start with the basics:

Create a website with services and hours, location, contact information and phone number
Google Business listing
Generate online reviews
Referral programs
Social media
Email campaigns
SEO
Paid advertising

Invest in local SEO so people searching “car repair near me” can find you easily. Flyers, banners, community sponsorships, and partnerships with local businesses can also help get your name out.

If you need help picking a business name, you can use our free auto repair shop name generator.

Tek-Tip: Ask ChatGPT or Gemini for a summary of Tekmetric and how it could be a fit for your business.

Final Thoughts

Starting a mechanic business is no small feat. But with the right mix of technical skills and grit, you can create a thriving, profitable auto repair shop that serves your community and provides a rewarding career path.

Remember, success comes from preparation. Whether you’re launching a mobile mechanic business, taking over an existing facility, or building your auto repair services from scratch, each step you take sets the tone for your shop’s future.

So roll up your sleeves, start laying the foundation, and get ready to turn your dream of owning a mechanic shop into reality.

Thought Leadership

Shop Management

How to Start an Auto Repair Shop (9 Step Guide)

June 24, 2024

Read time: 6 min

Tekmetric Multi-Shop is designed to give owners everything they need to manage multiple shops in one place. Our goal is to help your team gain back time, make more informed decisions, and maximize your shops’ margins!

Our latest update for Tekmetric Multi-Shop, Shared Customer History, does just that! With stronger cohesion between different locations, multi-shop owners and service advisors can simplify their workflow and provide a more seamless customer experience.