Auto Finance News
  • Home
  • News
  • Features
  • Events
    • Auto Finance Summit East
    • Equipment Finance Connect
    • Auto Finance Summit
    • PowerSports Finance Summit
  • Webinar
    • Harnessing AI & Machine Learning to Address Vehicle Affordability Issues
    • Webinar Library
  • Podcast
  • Powersports
  • Big Wheels Data

No products in the cart.

Subscribe
  • Capital & Funding
  • Compliance
  • Risk
  • Technology
  • Best Practices
  • Compliance Monitor
Log In
No Result
View All Result
Auto Finance News
  • Home
  • News
  • Features
  • Events
    • Auto Finance Summit East
    • Equipment Finance Connect
    • Auto Finance Summit
    • PowerSports Finance Summit
  • Webinar
    • Harnessing AI & Machine Learning to Address Vehicle Affordability Issues
    • Webinar Library
  • Podcast
  • Powersports
  • Big Wheels Data
BIG Wheels
Log In
No Result
View All Result
Auto Finance News
No Result
View All Result

BNPL picks up at dealerships as repair costs rise 6% 

Provider Sunbit’s approval rates over 90% 

Amanda HarrisbyAmanda Harris
February 20, 2025
in Capital & Funding
Reading Time: 6 mins read
0

Consumers are increasingly leaning on buy now, pay later services for maintenance and parts at auto dealerships as repair costs rise. 

Buy now, pay later (BNPL) can be used to cover the costs of repair orders, maintenance, accessories and parts, Jon Meredith, national service operations manager at Volkswagen, told Auto Finance News.  

(Courtesy/Canva)

Manufacturers including American Honda, Nissan and Volkswagen allow customers to finance purchases of parts and services at dealerships by spreading their payments over time. Many dealerships have signed on with BNPL providers such as Affirm and Sunbit. 

Volkswagen in 2021 selected Sunbit as its preferred BNPL provider, according to a Sunbit release. The number of VW dealers signing on to Sunbit’s platform increases 20% to 30% annually, Meredith said. 

“The volume of business that our dealers and Volkswagen are doing with Sunbit is substantial; it’s a lot of revenue,” Meredith said. “The trend is moving toward these payment credit solutions for consumers because the cost of repairs and services keeps rising.” 

In fact, the volume of auto repair purchases through Affirm rose 29% year over year in the second quarter of the company’s fiscal year 2025, ended Dec. 31, 2024, according to the company’s Feb. 6 earnings presentation.  

As of summer 2024, Affirm has facilitated more than $5 billion in loans for auto parts, accessories and servicing, Pat Suh, senior vice president of revenue at Affirm, told AFN. Affirm works with more than 130 institutional investors. 

“We consistently see people investing in their vehicles through things like aftermarket auto parts and enhancements like better wheels around tax season, which may illustrate it’s an expense that consumers are interested in fitting into their budget,” Suh said. “Maintenance can be costly and at times unexpected.” 

Repair costs up 5.9% 

Motor vehicle repair costs rose 5.9% year over year in January, according to the U.S. Bureau of Labor Statistics’ Motor Vehicle Maintenance and Repair Consumer Price Index. The index rose to 149.4 in January, according to data published Feb. 12. Repair costs have steadily increased and experienced a sharp uptick in 2022, according to the index. 

Consumer Price Index: Motor Vehicle Maintenance and Repair 

(Courtesy/Federal Reserve Bank of St. Louis)

Cerritos, Calif.-based Norm Reeves Honda Superstore Cerritos has seen steady growth in BNPL volume amid high costs, Mike Monell, service director at the dealership, told AFN. The dealership describes itself as the world’s largest Honda dealer, with more than 3,000 cars in inventory. 

Norm Reeves Cerritos has used Sunbit for more than seven years and does about $1.2 million in parts and labor sales volume a year through the Sunbit BNPL program, or about $125,000 per month, representing about 15% of total parts and labor business, Monell said.  

Dealerships pay a fee on each BNPL transaction completed at the point of sale, a spokesperson at Sunbit told AFN. Norm Reeves Cerritos pays a 3% transaction fee, Monell said. 

Consumers can decide on terms once approved for BNPL financing. Sunbit offers 0% financing for three months for qualified borrowers at participating dealerships, but rates vary depending on the final term selected, the spokesperson said. Sunbit’s average approval rate is 90%, according to the company. 

Driving aftermarket sales 

BNPL supports sales of maintenance and parts, especially for lower-income consumers, Mark Thorpe, director of aftersales operations at Nissan Motor and head of Infiniti aftersales, told AFN.  

He said that a large portion of consumers who opt for BNPL for service or parts carry a FICO credit score below 679 and may not qualify for traditional financing. 

“This is their only option to be able to finance a repair,” Thorpe said. “It’s driving revenue in the service lane on maintenance and parts because these consumers are getting their vehicles repaired where they wouldn’t be able to get them repaired anywhere else, because they wouldn’t be able to use a finance option.” 

BNPL is “driving revenue in the service lane on maintenance and parts because these consumers are getting their vehicles repaired where they wouldn’t be able to.” — Mark Thorpe, Nissan

Nissan implemented Sunbit in dealerships in 2019 and the penetration rate of dealers offering the program surpassed 80% in 2024, Thorpe said. “Triple-digit millions of dollars that have gone into that program,” he said, noting dealers use Sunbit, Affirm or other BNPL providers. 

Santa Ana, Calif.-based dealership Freeway Honda has used Sunbit for BNPL in the service department for nearly 10 years, John Beyer, service and parts director, told AFN.  

“It’s been a positive solution to some of the bigger repairs, and sometimes consumers use it for smaller, everyday repairs,” he said. Total service volume on a dollar basis rose 15% in 2024. 

BNPL financing approval rates through Sunbit average around 93%, Volkswagen’s Meredith said. “Because of that, our service advisers offer it as a payment solution to their customers regularly,” he said. 

Volkswagen also offers service and parts financing via a credit card powered by Citibank and car repair loans through auto finance company Dignifi, according to the manufacturer. 

However, the credit card application process can be an obstacle for some consumers, Meredith said, noting that the application to apply for BNPL is faster and doesn’t require a hard credit check. The application also includes information on payments, interest and total repayment amount, he said. 

“It’s transparent and the consumer can make an educated choice up front with the service consultant on what they want to do,” Meredith said.  

Auto Finance Summit East 2025 is set for May 12-14 at the JW Marriott Nashville featuring fireside chats with Santander Consumer USA and Chase Auto. Visit autofinance.live for more information. Early-bird registration is available here. 

Tags: aftermarketAncillary ProductsBNPLHondaNissan Motor Corp.Volkswagen
Previous Post

Vroom relists stock, reports $58M in liquidity 

Next Post

Carvana shares dip while originations soar 53.3% 

Related Posts

From left: Auto Finance News Editor Amanda Harris, Avid Acceptance President and Chief Financial Officer Curtis Ash, NextGear Capital Finance AVP Justin Makinson, SAFCO Chief Financial Officer Jason Person. (Courtesy/Auto Finance News)
Capital & Funding

Auto ABS issuances drop 37.2% YoY in May

May 19, 2025
Capital One and Discover credit cards arranged in Rhinebeck, New York, US, on Tuesday, Feb. 20, 2024. Capital One Financial Corp. agreed to buy Discover Financial Services in a $35 billion all-stock deal to create the largest US credit card company by loan volume, giving the combined entity a stronger foothold to compete with Wall Streets behemoths.
Capital & Funding

Capital One finishes Discover acquisition after 15-month journey

May 19, 2025
MY20.5 Location Photogaphy Capture
Capital & Funding

HDFS transaction expected to close in Q3

May 13, 2025
Next Post
Carvana vending machine

Carvana shares dip while originations soar 53.3% 

Stay Informed with Our Newsletters

PowerSports Finance

The Roadmap Podcast

ABOUT US

HELP CENTER

ADVERTISE

PRIVACY TERMS

ADA COMPLIANCE

CODE OF JOURNALISM ETHICS

Manage Cookie Consent

EXECUTIVES OF THE YEAR

AUTO FINANCE EXCELLENCE AWARDS

MAGAZINE ARCHIVE

INDUSTRY GLOSSARY

facebook linkedin twitter podcast podcast
© 2025 Royal Media
No Result
View All Result
  • Home
  • News
    • All News
    • Capital & Funding
    • EVs
    • Technology
    • Management
    • Powersports Finance News
    • Risk Management
    • Sales & Marketing
  • Events
    • Auto Finance Summit East
    • Equipment Finance Connect
    • Auto Finance Summit
    • PowerSports Finance Summit
  • Features
    • Latest Issue
    • Features
    • New Tracks
    • Car Culture
    • Staffing Shuffles
    • Under The Hood
    • Spotlight
    • Issue Archive
  • Webinar
  • Podcast
  • Big Wheels Data
  • SUBSCRIBE
  • Log In / Account

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • News
    • All News
    • Capital & Funding
    • EVs
    • Technology
    • Management
    • Powersports Finance News
    • Risk Management
    • Sales & Marketing
  • Events
    • Auto Finance Summit East
    • Equipment Finance Connect
    • Auto Finance Summit
    • PowerSports Finance Summit
  • Features
    • Latest Issue
    • Features
    • New Tracks
    • Car Culture
    • Staffing Shuffles
    • Under The Hood
    • Spotlight
    • Issue Archive
  • Webinar
  • Podcast
  • Big Wheels Data
  • SUBSCRIBE
  • Log In / Account

THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
34f6831605sessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
a64cedc0bfsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
CookieConsentPolicy1 yearUsed to apply end-user cookie consent preferences set by our client-side utility.
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
crmcsrsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
JSESSIONIDsessionThe JSESSIONID cookie is used by New Relic to store a session identifier so that New Relic can monitor session counts for an application.
LS_CSRF_TOKENsessionCloudflare sets this cookie to track users’ activities across multiple websites. It expires once the browser is closed.
LSKey-c$CookieConsentPolicy1 yearUsed to apply end-user cookie consent preferences set by our client-side utility.
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
CookieDurationDescription
__cf_bm30 minutesThis cookie, set by Cloudflare, is used to support Cloudflare Bot Management.
_zcsr_tmpsessionZoho sets this cookie for the login function on the website.
663a60c55dsessionThis cookie is related to Zoho (Customer Service) Chatbox
e188bc05fesessionThis cookie is set in relation to Zoho Campaigns
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
_ga2 yearsThe _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
_gid1 dayInstalled by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
CONSENT2 yearsYouTube sets this cookie via embedded youtube-videos and registers anonymous statistical data.
vuid2 yearsVimeo installs this cookie to collect tracking information by setting a unique ID to embed videos to the website.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
CookieDurationDescription
__Host-GAPS2 yearsThis cookie allows the website to identify a user and provide enhanced functionality and personalisation.
_dc_gtm_UA-1038974-31 minuteUsed to help identify the visitors by either age, gender, or interests by DoubleClick - Google Tag Manager.
_fbp3 monthsThis cookie is set by Facebook to display advertisements when either on Facebook or on a digital platform powered by Facebook advertising, after visiting the website.
fr3 monthsFacebook sets this cookie to show relevant advertisements to users by tracking user behaviour across the web, on sites that have Facebook pixel or Facebook social plugin.
test_cookie15 minutesThe test_cookie is set by doubleclick.net and is used to determine if the user's browser supports cookies.
VISITOR_INFO1_LIVE5 months 27 daysA cookie set by YouTube to measure bandwidth that determines whether the user gets the new or old player interface.
YSCsessionYSC cookie is set by Youtube and is used to track the views of embedded videos on Youtube pages.
yt-remote-connected-devicesneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt-remote-device-idneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt.innertube::nextIdneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
yt.innertube::requestsneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
CookieDurationDescription
caf_ipaddrsessionNo description available.
citysessionNo description available.
countrysessionNo description available.
gnt_eidsessionNo description available.
gnt_eu6 hoursNo description
iamcsrsessionZoho (Customer Support) sets this cookie and is used for tracking visitors (for performance purposes)
systemsessionNo description available.
traffic_targetsessionNo description available.
Save & Accept
Powered by CookieYes Logo