As more and more consumers ask for credit options for tires and automotive services, GE Money announced at last week’s Global Tire Expo/SEMA Show that it has opened an online business center for its CarCareONE credit card customers.
The center lets dealers process transactions and track customers' purchases, as well as offer online training courses, according to Mike Mattevi, vice president of automotive finance for GE Money. In addition, the center allows dealers to create promotional materials online.
Mattevi said compared to other big ticket retailers, tire dealers are behind the curve when it comes to offering their customers financing. In 2008, 60% of all retail purchases in the U.S were made on lines of credit, he added.
Because of the recession, many cash-strapped customers are forced to defer necessary repairs, so a credit card offering deferred payment plans is a beneficial customer service tool for dealers, Mattevi said.
Recent federal regulations have eliminated the 90-day/same-as-cash credit option, but tire dealers can offer six- or 12-month payment plans with GE Money’s credit card program, according to the company. Mattevi said the CarCareONE program was modified so the six-month promotion was at the same rate as the old 90-day option. Through end of the year, GE Money also is cutting its 12-month payment plan rate
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