Synchrony and Discount Tire Rethink Financing for Auto Repairs That Can’t Wait

Synchrony and Discount Tire Service Centers recognize that customers who cannot immediately complete auto repairs pose challenges to both financing approval and successful repairs. A customer may have been turned away from financing, never applied before, or had financing offered too late in the process, leading to a smaller repair job.

For merchants, these factors determine whether financing transforms a potential sale into an actual purchase. Understanding the human element behind these decisions is crucial, as noted by Synchrony's chief credit officer Anita Chalkley, and Discount Tire's vice president Chris Taylor.

Chalkley explained that Synchrony's PRISM underwriting system uses thousands of data points to assess a customer's ability to repay loans, going beyond traditional credit scores. Taylor, however, emphasized the importance of what happens during the sales conversation. The approval amount should ideally cover the full repair cost, not just a reduced amount that could make the customer seem ineligible for financing.

Additionally, Discount Tire monitors if customers return for service and if higher approval rates lead to more complaints or refunds.

Chalkley noted that Synchrony also looks at customers' cash flow information, which can help applicants who might otherwise be declined. Retailers may also consider factors such as the customer's line of work, their payment history with the retailer, and whether the customer appears to be budgeting effectively. For commercial customers, the consequences of declining service can be significant, as the vehicle often serves as a vital asset.

Merchants can obtain more comprehensive credit assessments by sharing relevant information about the customer relationship. Ultimately, the timing, consistency, and manner of presenting financing offers can significantly impact customer behavior and employee practices.