Published on 29/09/2024

The car industry is shifting up a gear with instalments | Maintenance

Fractional payments are all the rage, and the car industry is no exception to this revolution! Whether it's for vehicle maintenance, equipment or the purchase of vehicle¹, consumers are now using payment solutions such as in instalments. It's a trend that's shaking things up, and represents a tremendous opportunity for industry professionals. To gain a better understanding of the issues and realities, we have launched a series of interviews with Floa specialists. Following on from our first instalment on healthcare, this time we take a look at the automotive sector, a market in the throes of change that represents a strategic opportunity for "Buy Now Pay Later²". Stéphane Bernardo, Floa's specialist in this sector, gives us his expert view of consumer expectations, the new challenges facing professionals, and the advantages and support offered by Floa.

What is your vision of payment in instalments in the automotive sector?

Payment by instalments , or "Buy Now Pay Later" (BNPL)², has taken off in leaps and bounds in recent years, and the automotive sector is no exception to this fundamental trend. This solution meets a twofold challenge for consumers and professionals alike.

Firstly, in an inflationary environment that is impacting purchasing power, BNPL² enables households to smooth the payment of often substantial and unavoidable car-related expenses. We are seeing renewed interest in the second-hand market, which is more affordable than new cars.

Secondly, this payment solution is a tremendous growth driver for players in the industry. A Kantar X Floa study in December 2023³ revealed that around 6 out of 10 consumers would be prepared to change retailer to take advantage of the payment plan. This figure speaks volumes about customer expectations and the importance of BNPL² for automotive professionals.

What are the major trends in the motorbike sector?

It is experiencing a resurgence of activity at the start of 2024, with an increase in registrations compared with 2023⁴. This positive trend comes against a backdrop of far-reaching changes for the industry.

The electrification of vehicles is a major challenge if we are to limit CO2 emissions and meet consumers' environmental expectations. The public authorities have begun to make the switch, as demonstrated by the "social electric leasing "⁵ scheme, which has enabled 50,000 French households to purchase an electric vehicle for just €100 a month⁶.

This boost to electrification accounted for 18% of sales in the first 4 months of 2024⁷. It does, however, represent an additional cost for households. That's why Floa supports⁹, for example, by financing the installation of home electric charging points.

How do you see the BNPL market developing?² market for the automotive sector?

While payment by instalments was first used in sectors such as household appliances, high-tech and travel, it is now becoming an essential solution for car-related expenditure. These come in 5th place among items of expenditure paid for in instalments!

As well as simply smoothing out the costs of garage servicing, roadworthiness checks or unforeseen events, paying in instalments meets a strong consumer expectation: to be able to indulge or consume differently by accessing better quality or more responsible products. This solution appeals to all socio-professional categories.

Payment in instalments is becoming a genuine component of the offer, and is now essential for retailers.

An opportunity for players in the sector, whether in terms of building customer loyalty, facilitating access to their services or boosting their sales.

How does Floa meet the needs of the market and customers in this sector?

In response to the growing expectations of consumers and professionals in terms of payment, Floa has developed tailor-made solutions for the automotive⁹ sector. Our promise is to offer simple, straightforward buying paths, whether it's to arrange maintenance for a motorbike, install an electric charging point or buy accessories.

In just a few minutes, using a computer, tablet or smartphone, customers can enter their details and payment methods. They will then receive a secure link to validate their payment by instalments⁹. A 100% digital, frictionless experience that appeals to consumers looking for convenience.

For automotive professionals, whether dealers, repairers or manufacturers, Floa's⁹ staggered payment solutions are a major asset. They simplify access to their premium services and streamline checkout, boosting sales while increasing customer satisfaction and loyalty.

How does Floa support its partners in rolling out payment in instalments? by instalments?

At Floa, we adopt a tailor-made approach to meet the specific challenges of each player in the automotive sector, whether they are dealers such as Jaguar Land Rover, Suzuki, or parts specialists such as d'Oscaro. For my part, as sales specialising in motor cars and motorbikes, I'm responsible for precisely identifying the needs and challenges of our prospects, before proposing the most appropriate BNPL² solution. Once the partnership is established, a dedicated account manager takes over to manage the integration and day-to-day support.

At Floa, we're well aware of the challenges facing professionals, and the importance of the smallest details in meeting them. That's why we bring a wealth of expertise to bear for our partners, such as Maxxess in motorbike accessories and Ypocamp in motorhome after-sales: from scoring to marketing, data, machine learning and product innovation.

A 360° approach aimed at delivering simple, fast solutions for both professionals and their end customers. A gamble that paid off, as Floa was voted "Customer Service of the Year" for the 4th time in a row8, rewarding its efforts to place the user experience at the heart of its priorities.

Are you a car or motorbike dealer, garage owner, parts dealer or automotive equipment supplier? Paying in instalments is a golden opportunity to boost your sales, build customer loyalty and stand out from the competition. Stéphane Bernardo and the experts at Floa are on hand to help you integrate these simple, fluid solutions into your offering: tailor-made solutions for a rethought shopping experience and a boost to your growth !

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