Much has been made of the inventory crunch in both the new- and used-car markets. The Covid effect has been especially difficult for the auto dealer industry as thousands of new cars are sitting idle, waiting for computer chips that continue to be in extremely low supply. Auto Repair shops are taking note as customers delay buying a new car and instead look to maintain older vehicles.
Effects from the chip shortage has permeated the entire auto industry, creating a rare situation in which a new car bought a few years ago has maintained its value, or even increased. I bought my 2017 Mazda 3 brand new. Imagine my surprise when I looked up the Kelly Blue Book value and realized it had dropped in value less than 2 percent, even when accounting for the odometer, which currently reads 80,000 miles.
Customers prefer maintenance over buying
Although it is fairly exciting to realize that a car I bought new almost five years ago is essentially worth the same today, I would not consider selling it as I would then enter a market that has outpaced historic inflation rates and priced many people out of the market entirely. If my transmission blows tomorrow, I would simply go to the mechanic and get it fixed while grinning and bearing the high price.
And here is the rub. Along with microchips, there is also an historic shortage of auto parts overall. Mechanics across the country cite situations where customers have to wait weeks – sometimes months – as certain parts are on backorder. As supply-and-demand dictates, prices are steadily going up and there is little to no evidence this trend will reverse anytime soon. Many industry experts expect this trend to last at least through 2022, maybe even most of 2023.
With higher prices and low supply, it becomes even more important for auto repair shops and auto body shops to secure each transaction. Potential customers are not only holding on to their cars as they are priced out of the new-car market, overall inflation also suggests many will likely hold off on repairs until necessary, further pushing up the cost of repair.
Secure payment with Check Guarantee
Partnering with CrossCheck will allow auto repair shops to take a personal check with the full knowledge that the funds will be guaranteed, even in these uncertain times. CrossCheck’s Check Guarantee service is ideal, as it lets repair shops take payment without hesitation, confident in the knowledge that the check will be covered. CrossCheck has additional services that can help both the auto repair shop and the customer.
Multiple Check will seal the deal
With Cross Check in their corner, auto repair shops will be able to offer the customer CrossCheck’s Multiple Check service. Multiple Check will allow the customer to write several checks, which will be deposited at agreed-upon intervals, usually within a span of 30 to 90 days. When customers are faced with an expensive repair job, such as a new transmission, the ability to pay over time – interest-free – may be just the thing that will facilitate the deal and stop the customer from shopping around further. And again, with Multiple Check, each check will be covered and guaranteed by CrossCheck.