As inflation continues to impact household budgets, an increasing number of Americans are turning to "buy now, pay later" (BNPL) options to cover essential auto repairs and elective healthcare procedures.
The trend reflects growing financial pressures on consumers who need vehicle repairs but may not have immediate funds available. Auto repair shop owners across the country report seeing more customers requesting payment plans and financing options for everything from basic maintenance to major repairs.
"Many of our customers are looking for ways to spread out payments, especially for larger repair bills," said Daniel Palermo, an auto repair shop owner who recently relocated his business from Rochester, NY to Colorado Springs. "We're seeing people treat car repairs almost like elective healthcare - they want to fix issues but need flexible payment terms to make it work financially."
Industry experts note that the rise in BNPL usage extends beyond just auto repairs. Elective medical procedures, dental work, and cosmetic treatments are increasingly being financed through installment payment plans as consumers seek to manage their cash flow.
The expansion of BNPL services into these sectors represents a shift from their traditional use in retail shopping. Major BNPL providers have partnered with repair shops and healthcare providers to offer zero or low-interest payment plans, typically spread over 3-12 months.
However, financial advisors caution consumers to carefully review terms and conditions of BNPL arrangements, as missed payments can result in additional fees and negative credit impacts. They recommend exploring all payment options and ensuring monthly installments fit within household budgets before committing to payment plans.
As economic pressures persist, industry analysts expect the trend of using BNPL for repairs and healthcare to continue growing, particularly among younger consumers who may be more comfortable with digital payment solutions.
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