Fix Auto Introduces New Car Finance Scheme To Help In Repairs
10 Dec 2019
Approx Reading time: 3 minutes
- Fix Auto launches interest-free car finance scheme for helping car owners’ finance repairs
- The application process for car finance takes less than a minute, and there is a 96% acceptance rate
- Already 22 Fix Auto franchisee bodyshops are offering the service
Fix Auto UK has unveiled a new interest-free car finance scheme that helps car owners fund car repairs. The program will help the owners for repairs they do not want to claim from their insurance. It comes at the back of car finance platform Cazoo launching an online used car marketplace
Fix Auto launches interest-free car finance scheme
The Fix Auto car finance scheme is a credit payment method that is interest-free. This first of its kind scheme allows car owners to pay for repairs of their cars in plans. They have categorized the plans into three, six, nine, and 12 months payment plans.
The fully automated application process through the Fix System software only takes around 60 seconds. Consumers can apply for car financing for repairs through their phone or the company's user-friendly website. There is a 96% acceptance rate on the application, depending on the status of applicants. Besides these two users friendly features, there is also an option of assigning a guarantor to support one's application.
Through the car, finance scheme vehicle owners will qualify for a credit of around £2000. That is if they use the evaluation request function online. Interestingly none of the Fix Auto franchisees will bear any financial burden.
Fix Auto giving an alternative to cover for excesses
Ian Pugh, the Auto Fix director, indicated that they had designed the car finance scheme with car owners in mind. Pugh said that car owners find it distressful, especially when involved in car accidents. It is because of the upfront costs one has to incur so that they can cover excesses.
He added that car owners incur higher excesses that continue to grow and thus necessitating people to self-insure. As a result, that has given rise to a self-funding marketplace for minor repairs that is generally below the excess levels. Pugh asserted that because of this, they came up with this car finance scheme. The platform expects to offer car owners an alternative way of covering for their repairs. It will remove the pain they have to undergo when making claims after an accident.
Car finance scheme already in 22 franchisee bodyshops
The scheme launched in October, and already it is operating in around 22 franchisee bodyshops. Fix Auto operates the platform with a third party finance company. The platform is available across the whole network, and the company expects exponential growth in the coming months.
Pugh added that Fix Auto’s has around 45% of its damage claims below £1,000. Therefore the car finance scheme provides an alternative payment structure that can help do away with initial financial pain. The product that launched a few weeks ago has already seen a positive response from both customers and Fix Auto's network.