close-up-of -car-on-hydraulic-lift-in-professional-auto-repair-shop

Jonathan Westwood

Chief Compliance Officer

Jonathan Westwood | Author

Alastair Shephard

Content Writer

Alastair Shephard | Author

Ask drivers what matters most when choosing where to get their car serviced or repaired, and the answer is not price.

found that ‘trust and reliability’ is the number one factor, named as a priority by 69% of motorists – ahead of service quality, customer service and even cost.

This trust can be built or broken at the moments of greatest stress when customers engage with your workshop. For many customers, that moment is when they are presented with the bill. It's why flexible payment has become an important retention tool: nearly half of drivers (48%) now name the ability to spread the cost of repairs as a priority. Understanding those options can turn a difficult moment into a reason to return.

From 15 July, Buy Now Pay Later (BNPL) products will come under full FCA regulation for the first time. For many providers, like Bumper, the FCA’s expectations mirror the standards they already work to – but regulation now makes them universal. That will strengthen trust in BNPL products themselves – and, by extension, in the dealerships where they are presented.

Under the new regime, BNPL lenders must be FCA-authorised and comply with the Consumer Duty. They will be required to carry out proportionate affordability checks before extending credit, give customers clear upfront information on payment schedules, amounts due and the consequences of missed payments, and offer support to customers in financial difficulty. BNPL customers will also have access to the Financial Ombudsman Service for the first time. It is important to note that these obligations sit with the lender, rather than with the dealership as a retailer.

Regulation gives aftersales the foundation to build trust where it matters most: clarity and fairness at the moment customers pay. The new rules don’t create the expectation of trust, but they raise the legal floor underneath it.

The regulation arrives in a market where the bill conversation can be increasingly challenging. Repair costs are at a five-year high, up 26% since 2021, with the average repair bill rising from £473 to nearly £600. Yet 92% of drivers still consider repairs and servicing essential household expenditure. Every approval conversation now sits inside that tension.

This is why the payment stage has become the biggest trust-builder in the journey. When a customer is weighing up approving work, how the dealership interacts with them – whether the price feels transparent, whether the options feel fair – says more about the business than anything else in the visit. Get it right, and it is the moment loyalty is made.

The cost of getting it wrong is visible in conversion data. In 70% of vehicle health checks where safety-critical ‘red’ work was identified, drivers did not go ahead with all of the urgent recommendations, according to dealership data from our business intelligence arm, AutoBI. Among those who declined urgent work, nearly half cited affordability and a third said the work was simply too expensive – highlighting a confidence gap at the payment stage.

The instinctive response to that gap – discounting – tends to make things worse. As our report notes, frequent discounting can inadvertently erode confidence in the price itself. Regulated, transparently presented payment options offer the opposite: a way to help customers manage the cost of important work without teaching customers to distrust the first quote.

Regulation raises the floor – trust raises the ceiling

When the new rules take effect, the baseline of clarity and fairness rises for everyone. The dealerships that benefit most will be those that treat the payment conversation not as a compliance box but as the trust-building moment it has always been. Trust is not won in the workshop alone. It can be swiftly built or broken at the moment of payment – and from this summer, that moment comes with formal protections behind it.

Why trust at the payment stage drives lifetime workshop loyalty

This summer will see an important shift in how UK motorists experience instalment payments for car repairs, with new ‘buy now, pay later’ (BNPL) regulation.

From 15th July, BNPL agreements come under full FCA regulation, bringing clearer standards to how short-term credit is offered.

While this represents a step-change for many retail BNPL providers, the picture in automotive is quite different – and increasingly positive.

Both industry experience and the FCA’s own analysis underline a crucial truth: BNPL in automotive is fundamentally unlike high-frequency retail BNPL.

Regulation will accelerate, not hinder, its role in making mobility more affordable, predictable and customer-centric.

Consumer bodies, regulators and industry commentators have historically focused on the harms of fast repeat, discretionary retail BNPL.

But the automotive use case has never belonged in that category.

Reflecting Bumper’s consistent advocacy on behalf of the automotive industry, the FCA has recognised automotive BNPL as a positive, pragmatic use case, distinct from high-volume online shopping models.

Automotive customers face unexpected, essential costs – a failed MOT, a timing belt replacement, an urgent brake repair.

Bumper’s latest Automotive Aftersales Report found that 92% of drivers consider repairs and servicing an essential household expenditure.

BNPL here is not a lifestyle enabler; it is a mobility lifeline.

The sector is moving into a regime focused not on restricting access, but on applying proportionate protections under the Consumer Duty.

Why automotive BNPL is positioned to thrive under regulation

From July, customers using automotive BNPL products will be assured the same safeguards as traditional credit borrowers.

These include clear information disclosures, proportionate affordability checks, access to the Financial Ombudsman Service, and enhanced protections for those in difficulty.

Drivers have already shown that they trust instalment options when they are presented clearly and responsibly – it is why BNPL options have become a natural part of approving essential repairs.

Automotive BNPL has already matured on the back of clarity, sensible checks and a focus on essential repairs – qualities that the FCA’s new regime now brings to the surface.

Indeed, motorists have built substantial confidence in automotive BNPL by interacting with providers, like Bumper, which already operate with the same rigour expected of regulated credit, building customer familiarity and trust long before formal BNPL oversight begins.

Within the automotive sector, the way instalment finance is delivered already reflects many of the principles regulators want to see embedded across the wider BNPL market.

This gives automotive BNPL a natural advantage as the rules evolve, for several key reasons:

Automotive BNPL resolves short-term affordability gaps for essential repairs – a very different risk profile to retail BNPL, where discretionary purchasing can accumulate.

Unlike consumer ecommerce journeys, BNPL in automotive is embedded within a professional diagnostic and advisory process.

Customers are not adding a pair of jeans to a basket; they are often agreeing to safety-critical work, typically after receiving a formal quote and workshop assessment.

3. Dealers benefit from transparency and simplicity

For many retail-focused BNPL providers, the distribution chain becomes more complex under regulation.

The automotive industry bucks that trend: dealers’ responsibilities remain light-touch, predictable and supported by their provider.

4. Outcomes-based regulation plays to automotive BNPL’s strengths

The FCA has signalled a shift toward outcomes-based, Consumer Duty-aligned frameworks and away from overly prescriptive rules.

Automotive BNPL already relies on clear communication, proportionate assessments, and a stable low-volume credit environment – making it naturally aligned with this regime.

Regulation invites a new phase of BNPL innovation

Automotive BNPL moves into its next phase stronger than ever.

Far from constraining the sector, FCA regulation recognises and amplifies its strengths: essential spending, predictable risk, transparent journeys and measurable customer outcomes.

For dealers, OEMs and repair networks, the question becomes how they will integrate BNPL to reduce the need for discretionary discounting, and deliver greater workshop utilisation and stronger customer loyalty.

This is the moment BNPL in automotive moves from helpful to indispensable – regulated, trusted and built for the future of mobility.

BNPL regulation in automotive: Essential repairs are being backed by essential protections

BNPL regulation in automotive: Essential repairs backed by essential protections

John Clark BMW and MINI Aberdeen are our final dealership to have been named Dealer of the Month for 2025. 

This is the second time John Clark BMW and MINI Aberdeen have won the award, having won previously in December 2022. 

This time, the team received the recognition for utilising Bumper’s flexible payment options to improve the customer experience. 

Since 2022, the team have increased payment flexibility for their customers by adding additional payment methods into their offering – resulting in a near-perfect 4.8 out of 5-star rating on Trustpilot. 

In a review, one customer said: “BMW Aberdeen John Clark’s customer service is amazing. Very helpful, and I would really recommend Bumper to anyone who wants to split their bills.” 

Another customer said: “Unbelievably easy to set up. Done in like 30 seconds. So easy to spread out payments over a time to suit you. Would definitely use again.” 

By turning on Bumper Pro, John Clark has unlocked access to exclusive operational cost-saving features. 

Raymond Henderson, Service Manager at the Aberdeen branch, said: “You can see Bumper Pro was built by people who just get automotive. It addresses day-to-day challenges dealers like us face every day. 

“By diverting customers to more cost-effective payment methods like Pay by Bank, we’ve been able to reduce the burden of card processing fees on the business. 

“With Bumper Pro, you see the difference it makes to the business right away. Now that we have it, we can’t live without it.” 

Congratulations to the whole team at John Clark BMW and MINI Aberdeen! 

John Clark BMW and MINI Aberdeen: Harnessing flexible payment options to bolster customer experience 

John Clark BMW and MINI Aberdeen win Dealer of the Month

Team Bumper is excited to announce our next Dealership of the Month is John Banks Renault & Dacia Cambridge.

The Cambridge-based team has won the award for their use of Pay by Bank to streamline the customer journey and reduce transaction costs.

Pay by Bank is Bumper’s account-to-account payment technology, enabling customers to make fast and secure payments directly from their bank.

Requiring authentication within the customer’s mobile banking app, Pay by Bank is more secure than traditional card payments, and processing fees are a fraction of the cost.

Jordan Francis, Sales Manager at John Banks Renault & Dacia Cambridge, said: “It’s great to see the team recognised for their hard work with this award. 

“Intelligent payment routing enabled by Bumper’s PayPads has allowed the business to drive down the cost of acquiring with Pay by Bank while streamlining the payment journey for our customers.”

The John Banks group have now signed up to Bumper Pro – the complete payments platform, allowing users to combine in-store and online payments and gain access to cost and time-efficient features.

John Banks Renault & Dacia Cambridge: Streamlining the payment journey with Pay by Bank

We're thrilled to announce the winners of our recent competition.

Service advisors at our partner contact centres have been busy discussing Bumper's interest-free PayLater option with their customers.

To celebrate their hard work, our team made some visits with a truckload of prizes to give away.

Giving drivers flexible payment options during their first enquiry boosts customer satisfaction and alleviates stress during their visit.

Congratulations to all our winners and thank you for using Bumper with your customers!

Revealed: Winners of our most recent competition

Richmond Bognor Regis has been crowned Bumper’s next Dealership of the Month. 

Operating in Hampshire, West Sussex and Surrey, Richmond Motor Group works with 6 different franchises across 7 locations. 

Since early 2023, the group has used Bumper’s PayLater products to split the cost of drivers’ repair bills into interest-free monthly payments. 

In that time, the Bognor Regis site has embedded PayLater into their everyday aftersales process, using the interest-free option to enhance the customer experience with increased payment flexibility. 

Ian Squibb, Aftersales Manager, said, “Thank you to Bumper for this award. Our team has seen firsthand the benefits of having Bumper available for our customers. 

“As a newer team, we’re focused on always doing the best for our customers, and Bumper plays a key role in that. 

“By offering flexible payment options, we’re able to enhance customer satisfaction and retention while also increasing authorised work through giving customers more choice.” 

Customers praised PayLater at Richmond Bognor Regis on Trustpilot, where the site received a near-perfect score of 4.8 out of 5 stars. 

One customer wrote, “Super efficient and easy to set up, really clear confirmation of payment plan as well.” 

Congratulations to Reece, Artur, Nick, Ian, and the whole team at Richmond Bognor Regis on your win! 

Enhancing customer satisfaction with Richmond Bognor Regis 

We’re excited to announce the next Dealership of the Month as Riverside Volvo Hull. 

The Volvo site has been part of the Bumper network since 2021, using PayLater to split the cost of their customers’ bills into interest-free monthly payments. 

Now, the site is one of the latest to roll-out Bumper Pro, a complete payment solution combining every payment method – PayLater, Pay by Card, Pay by Bank and PayPad. 

Pro enables dealers to simplify payment management and reduce processing fees. 

Connecting seamlessly to Pinewood.AI, Bumper Pro has allowed Riverside Motor Group to automatically reconcile payments, saving their teams needless time spent manually matching payments. 

Intelligent payment routing has unlocked significant transaction fee savings for the group, with drivers automatically directed to a preferred payment method depending on their transaction size. 

Additionally, with multiple providers and payment types at their fingertips, Bumper Pro has equipped Riverside Volvo Hull with the necessary tools to almost eliminate the possibility of payment downtime. 

Group Operations Director, Andy Jackson, at Riverside Motor Group, said: “Bumper Pro has had a major impact on our operational efficiency. Automatically reconciled payments within Pinewood saves our team heaps of time, completely eliminating what was a previously laborious process. 

“Pro has also had a positive impact on our customers. With every payment option connected seamlessly through our Bumper account, DMS and the Bumper PayPads, our drivers are given the ultimate flexible payment experience consumers have to expect.” 

Riverside Volvo Hull: Transforming payment management with Bumper Pro 

Listers Audi Birmingham has been named the latest site to win Bumper’s Dealership of the Month following a training session, encouraging the team to be proactive in offering Bumper and maximise every opportunity. 

The Midlands site has used PayLater to empower customers to make essential repairs to their vehicles since 2018. 

To build the confidence of service advisors across the division, Listers Audi arranged an internal training session with Group Trainer, Chris Kitson. 

Focusing on how to talk about the interest-free monthly payment option with customers, the training day empowered advisors with new tools to better engage customers. 

Ed Sanders, Aftersales Manager, shared some encouraging results. 

“We've seen a noticeable uplift in recovery rates, red work sold, and parts sold per throughput – a real positive for us as a dealer,” said Sanders. 

“The training has given the relatively new team a fresh perspective, and it's been great to see their growing confidence when it comes to presenting and selling.” 

With over a 100% increase in PayLaters this month, Listers Audi Birmingham has been able to make a real impact to their local community, keeping their customers’ vehicles safe on the road. 

Tom Cox, Listers Brand Director, said, “Great results so soon after the training, well done to Ed and the whole team at Audi Birmingham for your engagement and commitment.” 

Steve Tapp, Service Manager, said, “In May, we took a proactive step to enhance the way we present Bumper’s monthly payment options to our customers. Recognising the importance of clear, transparent finance solutions, we retrained all of our staff across both Audi and Skoda.

“Previously, Bumper was often introduced only as a backup solution during objection handling. Following the training, we have now embedded Bumper into the core of our service process. The bookings team are discussing the benefits of Bumper at the time the booking is taken, in addition to the advisors presenting the option upfront at the point of the Vehicle Health Check, ensuring that customers are made fully aware of flexible monthly payment options from the very beginning. 

“This change means our customers benefit from complete clarity and choice when it comes to maintaining their vehicle, while our teams are empowered to offer a more professional, consistent, and customer-focused experience.” 

This impact has already started to show in their customer feedback, with a 4.9 out of 5 rating on Trustpilot. 

One customer said, “The Service was really good. It was a warm welcome. Dealing with Reece was great.” 

“The whole Bumper finance experience was excellent and extremely user-friendly,” said another. 

Congratulations to Ross, George, Amy, Reece, Jake, Ed, Steve, and the whole team at Listers Audi Birmingham on your win! 

New team at Listers Audi Birmingham win Dealer of the Month following Bumper training day

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