AAMCO Partners With LoanHero To Maximize Loan Approval Rates For Customers
World’s Largest Franchise of Transmission Specialists Launches Enhanced Consumer Financing Program for Franchisees
April 11, 2016 // Franchising.com // HORSHAM, Pa.– AAMCO, the world’s largest chain of transmission specialists and leader in total car care, today announced it has selected LoanHero, a disruptive consumer-lending platform, to provide enhanced consumer financing options to its franchisees systemwide. The company is in the initial stages of rolling out the new consumer finance technology platform, which allows customers to submit one credit application to access multiple lenders in order to optimize consumer and merchant terms and maximize loan approval rates
“This new, robust consumer financing program is part of a broader strategy to significantly improve our franchisees long-term profitability,” said Jim Gregory, CFO of AAMCO Transmission, Inc. “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.”
Through this partnership, customers 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 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.
“AAMCO understands the value and impact consumer financing can have on its franchisees’ businesses,” said Derek Barclay, LoanHero president and co-founder. “LoanHero’s streamlined and seamless technology will not only help increase sales, but attract new customers by allowing AAMCO to stand out from the competition.”
Sameer Gulati, who owns one AAMCO service center in San Francisco, was one of the first of nearly 50 franchisees to test the new platform at their service centers.
“In the past, my staff would have to complete several applications for multiple lenders, and now, they are enjoying having a centralized application platform with a multi-lender solution. The entire process is very straightforward and more efficient than ever before,” said Gulati. “I’m very pleased that AAMCO continues to listen to its franchisees and has taken the initiative to improve financing options for our customers.”
For over 50 years, AAMCO's locally owned and operated independent service centers have employed the latest technology. Expert technicians diagnose a repair, fix it right the first time, and back it with a nationwide warranty. Known as the world's leading transmission expert, the company has evolved into a total car care brand providing a variety of services including brake repairs, tune-ups, shocks and struts, routine maintenance and more. AAMCO was recently named to Entrepreneur’s 2016 Franchise 500®, ranking at the top of the transmission repair category. Based on system size, growth rate and financial strength, the brand also earned a spot on Entrepreneur’s “Best of the Best” list.
With nearly 700 centers across North America, AAMCO is actively seeking single- and multi-unit operators who are passionate about the brand and committed to providing the highest quality service. Interested candidates should have a minimum net worth of $250,000 and liquid assets of at least $65,000 per unit. Depending on the real estate site selected, franchisees can expect the total investment to be approximately $227,400 – $333,000 with a $39,500 initial franchise fee. Reduced franchise fees are available for honorably discharged veterans.
To learn more about franchise or conversion opportunities with AAMCO, contact Eric Simon, director of franchise development, at 888-977-1419 or firstname.lastname@example.org or visit aamcofranchise.com.
AAMCO is the world's largest chain of transmission specialists and a leader in total car care services. AAMCO has nearly 700 automotive centers throughout the United States and Canada. Established in 1962, AAMCO centers are proud to have served more than 45 million drivers. For more information, visit aamcouniversity.com, aamco.com or www.aamcoblog.com.
LoanHero has developed an innovative loan origination platform that solves a multibillion-dollar problem. By bringing marketplace lending to the point of sale, LoanHero provides better financing options for consumers purchasing goods and services including furniture, home improvement, auto repair, and elective healthcare. Through the integration of strategic lending partners in combination with a unique balance sheet/marketplace lending structure, LoanHero is able to offer instant decisions and the most competitive loan product available for each level of credit through one streamlined platform. LoanHero empowers merchants and lenders alike to become Heroes to the consumers they serve.
To learn more about LoanHero and stay up to date on future updates, visit www.loanhero.com.
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