Offer finance for car accessories

Offer Finance for Car Accessories

In today's automotive world, car accessories have become more than just a luxury—they are often essential for comfort, safety, and personalisation. From high-end sound systems to practical roof racks and custom alloy wheels, car accessories can significantly enhance the driving experience. However, these upgrades often come with a hefty price tag, making it difficult for some consumers to afford them outright. This is where offering finance for car accessories can make a big difference.

By providing flexible payment options, you can enable customers to upgrade their vehicles without the financial strain of paying in one go. In this article, we’ll explore the benefits of offering finance for car accessories, how it works, and why partnering with a retail finance broker like Kandoo can make this process seamless and beneficial for both retailers and consumers.

Why Offer Finance for Car Accessories?

1. Increase Sales and Customer Satisfaction

One of the main reasons to offer finance for car accessories is to boost your sales. Many customers may want to purchase high-end car accessories but might be hesitant due to the upfront costs. By offering finance options, you give them the opportunity to spread the cost over several months, making it easier for them to say "yes" to those upgrades.

For example, a customer might be interested in a premium infotainment system but may not be able to afford the £1,200 upfront cost. However, if they can pay for it over 12 months at £100 per month, the purchase becomes much more manageable.

Additionally, offering finance can enhance customer satisfaction. Customers appreciate flexible payment options, and by providing them with a way to purchase what they want without financial strain, you can create a more positive shopping experience. This can lead to increased customer loyalty and repeat business.

2. Stay Competitive

In the modern marketplace, many retailers already offer finance options for larger purchases. If you don't offer finance for car accessories, you may find yourself falling behind competitors who do. Offering finance shows that you're attuned to the needs of your customers and willing to offer them flexible payment options.

Furthermore, consumers are increasingly accustomed to using credit and finance for their purchases. From smartphones to home appliances, financing options are available for nearly everything. Car accessories are no exception, and by offering finance, you align your business with current consumer trends.

3. Higher Average Order Value

When customers are able to spread the cost of their purchase, they are often more likely to choose higher-value items. For instance, instead of opting for basic seat covers, they may choose premium leather covers if they know they can finance the purchase over time. This not only benefits the customer but also increases the average order value for your business.

By offering finance, you're empowering customers to make larger purchases that they might not have considered if they had to pay the full amount upfront. This, in turn, can significantly boost your revenue.

How Does Financing Car Accessories Work?

Financing car accessories works similarly to financing any other retail purchase. Customers apply for credit through a third-party finance provider, and if approved, they can spread the cost of their purchase over a set period of time.

The process typically involves the following steps:

1. Application: The customer fills out a credit application, either online or in-store. The finance provider will assess the customer's creditworthiness and determine whether they qualify for financing.

2. Approval: If the application is approved, the customer is given the option to spread the cost of their purchase over several months. The terms will vary depending on the finance provider, but customers are usually able to choose from a range of repayment periods, typically between 6 and 36 months.

3. Purchase: Once the financing is approved, the customer can complete their purchase and take home their new car accessories. The retailer receives payment from the finance provider, minus any agreed fees.

4. Repayment: The customer makes monthly payments to the finance provider until the full amount is repaid.

This process is straightforward and convenient for both the retailer and the customer. Retailers benefit from receiving payment upfront, while customers can enjoy their new car accessories without the financial burden of paying in full at the time of purchase.

The Role of Retail Finance Brokers

To offer finance for car accessories, you'll need to partner with a finance provider. This is where a retail finance broker like Kandoo can be invaluable. Kandoo works with a wide range of lenders to offer tailored finance solutions to retailers across the UK. By partnering with Kandoo, you can provide your customers with flexible payment options while ensuring a smooth and secure process.

Why Partner with Kandoo?

Kandoo is a UK-based retail finance broker that specialises in helping retailers offer finance options to their customers. Here are some key benefits of partnering with Kandoo:

1. Access to Multiple Lenders: Kandoo works with a wide network of lenders, ensuring that your customers have access to a variety of finance options. This increases the likelihood of finding a financing solution that suits your customers' needs, regardless of their financial situation.

2. Easy Integration: Kandoo offers seamless integration with your online or in-store checkout process. This makes it easy for customers to apply for financing and get approved quickly, without disrupting the shopping experience.

3. Regulatory Compliance: As a regulated finance broker, Kandoo ensures that all finance options are compliant with UK regulations. This gives you peace of mind, knowing that you're offering a legitimate and responsible financing option to your customers.

4. Dedicated Support: Kandoo provides dedicated support to retailers, helping you navigate the complexities of offering finance. Whether you need help with integration, customer queries, or compliance issues, Kandoo is there to assist you every step of the way.

By partnering with Kandoo, you can offer finance for car accessories with confidence, knowing that you're backed by a reputable and experienced finance broker.

Types of Car Accessories That Can Be Financed

Virtually any car accessory can be financed, making it easier for customers to customise their vehicles without breaking the bank. Here are some popular types of car accessories that customers often finance:

• Infotainment Systems: High-end infotainment systems can cost hundreds or even thousands of pounds. Offering finance allows customers to upgrade their car's audio and navigation systems without the upfront expense.

• Alloy Wheels: Custom alloy wheels are a popular choice for car enthusiasts, but they can be expensive. Financing options make it easier for customers to invest in premium wheels.

• Roof Racks and Bike Carriers: Practical accessories like roof racks and bike carriers are essential for many drivers, particularly those who enjoy outdoor activities. Financing these items can make them more accessible to a wider range of customers.

• Seat Covers and Upholstery: Premium leather or custom seat covers can transform the interior of a vehicle, but they often come with a high price tag. Offering finance can help customers afford these luxury upgrades.

• Dash Cams and Security Systems: Safety and security are top priorities for many drivers, and dash cams and security systems are increasingly popular accessories. Financing these items makes it easier for customers to invest in their vehicle's safety.

• Performance Upgrades: For those who want to enhance their car's performance, accessories like exhaust systems, suspension upgrades, and engine tuning can be financed, allowing enthusiasts to achieve their desired performance without the upfront cost.

Benefits for Retailers

Offering finance for car accessories isn't just beneficial for customers—it can also provide significant advantages for retailers:

1. Boost Sales: By offering finance, you can attract more customers and increase the likelihood of them making a purchase. Customers who may have hesitated due to the cost are more likely to buy when they can spread the payments.

2. Increase Customer Loyalty: Offering finance options shows that you're committed to providing flexible solutions for your customers. This can lead to increased customer loyalty and repeat business.

3. Improve Cash Flow: When you offer finance through a third-party provider like Kandoo, you receive payment upfront, while the customer pays the finance provider over time. This improves your cash flow and reduces the risk of late payments.

4. Stand Out from Competitors: In a competitive market, offering finance can set you apart from competitors who don’t provide this option. It demonstrates that you’re willing to go the extra mile to meet your customers’ needs.

How to Start Offering Finance for Car Accessories

If you're ready to start offering finance for car accessories, the first step is to partner with a reputable retail finance broker like Kandoo. They will guide you through the process of integrating finance options into your checkout process, whether you're selling online or in-store.

Once you're set up, you can begin promoting your finance options to customers. Make sure to highlight the availability of finance on your website, in-store displays, and marketing materials. This will encourage customers to consider purchasing higher-value items, knowing that they can spread the cost over time.

Conclusion

Offering finance for car accessories is a win-win for both retailers and customers. It makes high-quality, premium accessories more accessible to a broader range of customers while boosting sales and improving cash flow for retailers. By partnering with a retail finance broker like Kandoo, you can offer flexible, customer-friendly payment options that will set your business apart from the competition.

In a world where personalisation and performance upgrades are becoming increasingly popular, offering finance for car accessories is a smart way to meet customer demand and grow your business. Whether you're selling online or in-store, providing finance can help you attract more customers, increase sales, and build long-term customer loyalty.