The worlds largest chain of transmission and car care, AAMCO, has signed an agreement to utilize Loan Hero’s platform. AAMCO is in the early stages of rolling out the new consumer finance technology platform. Loan Hero will allow customers to submit one credit application to access multiple lenders and thus maximize loan approval rates. AAMCO has about 700 locations across North America.
Jim Gregory, CFO of AAMCO, described the agreement as part of a broader strategy of improving franchisee long term profitability.
“With LoanHero, we’ve found the right portfolio of lenders that will allow our customers to receive instant approvals, while providing fast payment to our franchisees. Through our testing, AAMCO franchisees have already experienced a significant increase in average comp store sales, in addition to a jump in loan approval rates and average approval amounts for customers. We expect the impact on store performance to increase as the program continues to roll out systemwide. It’s truly a win-win situation for everyone.”
Customers will have the option to apply for a loan for their automotive repair services via their web browser or mobile device through a single-application process that gives them access to a variety of lenders. As a result, AAMCO states it will become more in line with other industries, having a comparable average ticket size, that process around 50 percent of sales via credit as compared to AAMCO’s current rate of roughly 10 percent.
Derek Barclay, co-founder and President of Loan Hero said that AAMCO understood the benefit to their franchisees. Barclay stated this will not only increase sales but also attract new customers with the ease of financing provided.
AAMCO cited a pilot location in San Francisco. Owner Sameer Gulati said he was pleased the company had listened to their franchisees by improving the financing process for customers.