Documente Academic
Documente Profesional
Documente Cultură
TABLE OF CONTENTS
TABLE OF CONTENTS........................................................................................ 1 INTRODUCTION..................................................................................................... 3
TALE OF THE TAPE .............................................................................................................. 3
AUTO REPAIR FINANCING TIPS FOR CONSUMERS .................................... 7 CORPORATE INSIGHT THOUGHT LEADERSHIP.......................................... 8 ABOUT CORPORATE INSIGHT .......................................................................... 9
The enclosed material may be freely transmitted but may not be reused, copied or repurposed without the express permission of Corporate Insight, Inc. Monitor Services are service marks of Corporate Insight, Inc., all rights reserved. Corporate Insight is open to information from its reports and research being cited in marketing efforts. Should you wish to cite your companys recognition or any report content, please contact us at PR@corporateinsight.com to coordinate approval.
INTRODUCTION
Automobile repairs are aggravating and are hardly ever anything less than a nuisance. After all, it is difficult to predict mechanical failures and fender benders, and auto repairs, however expensive, are often necessary to keep the vehicle in pristine condition. For some the cost is negligible. However, for many people, unpredictable car repairs can lead to financial, and ultimately personal, distress. The often unforeseeable and substantial nature of automotive repairs opens the market for automotive repair financing. What financing options are out there? In this whitepaper, we examine the major auto repair credit cards available to consumers.
GE Capital CarCareONE Interest Rate Annual Fee Min Finance Charge Late Fee Cash Advance Fee Cash Advance APR
CFNA 22.8 None $1.00 $15 $35 ---------------------------- Service history at any store Online Account Management No interest if balance is paid off within 6 months No Annual Fees Low monthly payments Nationwide acceptance Special offers and savings Optional Card Security
Citibank Goodyear Card 28.99 None None $25 or $35 5% or $10 29.95
Discounts Online account management No interest if monthly balance is paid off on time No annual fee Low monthly payments Online Account Management Cash advancement
29.99 None None Up to $36 ------------------------------------------Optional Card Security Can be used at Exxon or Mobil 6 Months Special Financing on purchases of $299 or more No annual fee Accepted at over 16,000 CarCareONE locations Accepted at all U.S. Exxon and Mobil stations Online account management
Benefits
The Good: Although not as versatile as the GE card, the Goodyear card can still be used nationwide at
over 5,000 locations, including retailers distinct from Goodyear. Applicants will generally receive a decision immediately upon submitting the application. The option to connect a personal bank account with a Goodyear account, which can be set up to send payments automatically, makes account management incredibly easy.
Major Retailers Accepting Each Card GE CarCareONE NAPA Aamco Meineke Maaco Midas Pep Boys CFNA Bridgestone Firestone Monro STS Best One Citibank Goodyear Goodyear Mr. Tire
are not necessarily Goodyear fanatics, there are more retail options available on the GE Capital and
The Verdict: The Goodyear card is great for anyone that needs an immediate line of credit and prefers
Goodyear retailers to others. Approximately 60% Goodyear credit card holders have a FICO credit score of below 700, so Citibank does not mind taking risks on customers, which is likely why the APR is on the higher-end. The Goodyear card can be a good investment if applicants pay off their balances on time and take advantage of the promotional rebates that offer cash back options.
The Good: The CarCareONE card is more versatile than the other major auto repair financing cards
and is accepted at over 16,000 locations across the United States. For someone who needs a repair away from home, they are almost certainly close to a shop that will accept CarCareONE. Customers can use their card at major auto repair retailers including: Pep Boys, Midas, Meineke, Maaco, NAPA, Aamco, Merchants and more. CarCareONE can also be applied to fuel purchases at any Exxon or Mobil gas station, of which there are over 10,000.
The Bad: Although CarCareONE offers interest-free financing under specific conditions, the variable
purchase APR of 29.99 is almost two and a half times the national average for fixed-rate credit cards.
The Verdict: The GE CarCareONE card is ideal for emergency situations where a person might need
instant credit with broad application. Another benefit is virtual support through webinars, online chat and alerts. Customers who maintain a high balance on the CarCareONE card should be aware of the high APR and the potential for accruing hefty interest charges. Roughly 70% of cardholders have a credit score of fewer than 700, which may explain the unusually high APR. 45 40 35 30 25 CarCareONE 20 15 10 5 0 <500 501-550 551-600 601-650 651-700 701-750 >750
The graph above depicts Goodyear and CarCareONE cardholders credit scores versus FICO's national data. Retail banks take on risk by giving credit to people with subpar scores, consequently inflating interest rates.
Goodyear
FICO
The Good: With an APR of 22.8%, the CFNA card offers the best low-interest financing options.
Customers can avoid interest altogether by paying off the account balance within 6 months of purchase. CFNA has national reach, and a few of the major participating retailers include: Firestone, Bridgestone, Monro, STS, and Best One.
account information and updates efficiently and within the appropriate time frame.
The Verdict: The CFNA lacks the infrastructure and resources of a company like GE, which probably
contributes to their insufficient and sometimes confusing information. For example, some of their cobranded cards can be used at all Bridgestone Firestone locations, but their website also implies that some cannot. Although not as comprehensive as the CarCareONE card, the CFNA cards offer low interest financing and instant credit, making it an effective resource in inopportune times. Customers should be aware of CFNAs reputation for middling communication, which can be aggravating when payments and statements are involved.
#1
All auto repair credit cards offer high interest rates, but they also offer no-interest financing under the stipulation that the account balance is paid on time or within 6 months. If you apply for one of the three cards, be sure you can pay off your balance on time.
#2
Some cards provide access to more retail locations than others. Make sure to find out the major retail repair shops that are near your home or office. For example, it would be wise to apply for a Goodyear credit card only if you are close to a Goodyear retail shop.
#3
Special offers and savings associated with the cards are minimal, and are not a sufficient reason to apply for a card. Apply for a card because you need to finance a repair quickly and without a big hassle, not because you intend on earning rewards.
#4
Establish what you will use the card for to help guide decision-making. If you want a card that can be used for fuel purchases in addition to repairs, then CarCareONE is a good option. If your primary concern is interest rates, then CFNA is the best option.
User Insights Vol. 2 - Comparing the Desktop and Tablet Banking Experience This usability study provides insights to how mobile applications match up against traditional website interfaces, both in terms of usability and functionality for five leading banks.
Optimizing the Online & Mobile Experience for Retirement Plan Participants This slide deck features industry best practices and includes five recommendations for DC plan providers looking to improve their Web and mobile offerings.
2013 Mobile Finance Trends and Innovations This study includes commentary on mobile developments, key takeaways for financial services firms and thoughts on whats next for mobile finance.
Asset Management and Social Media: A Guide to Social Marketing This guide looks at how asset management firms use popular social media platforms such as LinkedIn, Twitter, Facebook, YouTube and Google+ to connect directly with investors and financial advisors. Also available as a slide deck.
The Millennial Opportunity Whitepaper Examines the marketing tactics, strategies and online resources leading financial institutions are using to connect with Millennials. Also available as a slide deck.
Media Inquiries
Corporate Insight welcomes the opportunity to speak with the media. If you are interested in citing our research or would like to schedule an interview with one of our analysts, please contact Intermarket Communications at 212-888-6115 or corporateinsight@intermarket.com.
Connect With Us
ANDREW MALAMET RESEARCH ASSOCIATE 212-832-2002 X-145
AMALAMET@CORPORATEINSIGHT.COM