Auto Repair Financing - A Guide for Consumers

AUTO REPAIR FINANCING
A GUIDE FOR CONSUMERS

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© 2013 Corporate Insight, Inc. Auto Repair Financing: A Guide for Consumers
www.corporateinsight.com Follow us on Twitter @CInsight
TABLE OF CONTENTS
TABLE OF CONTENTS........................................................................................ 1
INTRODUCTION..................................................................................................... 3
TALE OF THE TAPE ..............................................................................................................3
CREDIT CARD REVIEWS...................................................................................... 4
CITIBANK GOODYEAR CARD ..................................................................................................4
GENERAL ELECTRIC CAPITAL CARCAREONE CARD.......................................................................5
CREDIT FIRST NATIONAL ASSOCIATION CARD.............................................................................6
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 company’s
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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.
Tale of the Tape
The table below breaks down the interest rates, fees and key features offered by the three largest auto
repair credit cards in the industry:
GE Capital CarCareONE CFNA Citibank Goodyear Card
Interest Rate 29.99 22.8 28.99
Annual Fee None None None
Min Finance Charge None $1.00 None
Late Fee Up to $36 $15 – $35 $25 or $35
Cash Advance Fee ---------------------- --------------- 5% or $10
Cash Advance APR ---------------------- --------------- 29.95
Benefits
 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
 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
 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

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CREDIT CARD REVIEWS
Below, we take a closer look at the three major auto repair credit cards. The reviews analyze strengths
and weaknesses and provide our overall assessment of the credit cards.
Citibank Goodyear Card
Overview: Citibank issues The Goodyear credit card, which can be applied at non-Goodyear locations,
most of which are smaller retail locations with Mr. Tire being the most notable. The Goodyear card can be
used for tire purchases as well as general automobile services, and customers can receive exclusive
promotions and rebates through Citibank.
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.
The Bad: The interest rate for the
Goodyear card is 28.99%, and thus places
pressure on cardholders to pay off their
balance regularly and on-time. Additionally,
Goodyear is not as versatile as the
CarCareONE or CFNA cards. Although it
can be applied at any of the 4,500
Goodyear locations, it is limited by its lack
of access to other major retailers. For those
that want financing options for their car but
are not necessarily Goodyear fanatics, there are more retail options available on the GE Capital and
CFNA cards.
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.
Major Retailers Accepting Each Card
GE CarCareONE CFNA
Citibank
Goodyear
NAPA Bridgestone Goodyear
Aamco Firestone Mr. Tire
Meineke Monro
Maaco STS
Midas Best One
Pep Boys

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General Electric Capital CarCareONE Card
Overview: The GE Capital CarCareONE credit card is one of many retail credit cards provided by the
GE Capital Retail Bank. Besides issuing the CarCareONE card, GE Retail Bank offers co-branded cards,
which provide special offers and promotions with select retail stores. Interested customers can simply
apply online and receive a credit line within minutes of submission. GE also offers optional card security,
which will protect your account up to a maximum of $10,000.
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.
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.
0
5
10
15
20
25
30
35
40
45
<500 501-550 551-600 601-650 651-700 701-750 >750
Credit Score Distribution (by %)
Goodyear
CarCareONE
FICO

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0 5000 10000 15000 20000
CarCareOne
CFNA
Good Year
Retail Locations by Card
Credit First National Association Card
Overview: The Credit First National Association provides credit cards exclusively for automotive repair
financing. Unlike GE, which provides a card of its own brand (CarCareONE) in addition to co-branded
cards, all of the CFNA’s cards are co-branded. CFNA is a wholly owned subsidiary of Bridgestone, which
is why the standard CFNA card depicts the Bridgestone – Firestone brand. Applicants can apply online or
in-store and will receive a decision instantly.
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.
The Bad: CFNA does not issue a
general card that can be used at all of
its co-branded locations. The
CarCareONE card can be applied at any
of the stores that partner with GE Retail
Bank, which means it can be applied at
all of the 16,000 possible locations.
Additionally, credit card forums are
littered with complaints regarding
CFNA’s inability to communicate
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 co-
branded 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 CFNA’s reputation for middling communication, which can be aggravating when
payments and statements are involved.
0 5000 10000 15000 20000
CarCareONE
CFNA
Goodyear
Retail Locations by Card

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AUTO REPAIR FINANCING TIPS FOR CONSUMERS
The major credit cards in auto repair financing excel in different areas and it is incumbent on customers to
evaluate every aspect of a credit card agreement before applying. Here are four tips to guide you when
deciding on how to finance that next auto repair:
#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.

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CORPORATE INSIGHT THOUGHT LEADERSHIP
Facebook Marketing Campaigns - Social Media Initiatives in the
Insurance Industry
This slide deck highlights some of the engaging Facebook marketing
campaigns initiated by P&C Insurance Monitor firms this year and offers a
few Facebook marketing tips for insurers.
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 what’s 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.

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ABOUT CORPORATE INSIGHT
Corporate Insight provides competitive intelligence and user experience research to the nation's
leading financial institutions. For over 20 years, Corporate Insight has tracked new developments in the
financial services industry through our Monitor research services and custom consulting services. We are
known for our detailed, objective research, unmatched expertise, and emphasis on the actual user
experience. There are no assumptions in Corporate Insight’s work – we use live accounts at the firms we
track to benchmark their effectiveness across all major channels and give our clients unparalleled
competitive intelligence.
Corporate Insight is continuously tracking and identifying best practices in online banking and investing,
insurance, annuities, mobile finance, active trading platforms, social media and other emerging areas. In
the process, we have helped our clients -- which cover the entire spectrum of financial services -- to stay
on top of industry trends and improve their competitive position.
Our intelligence services are utilized by over 70% of the financial services firms on the Fortune 500. Our
research and analysts are frequently cited in financial media outlets such as The Wall Street Journal,
Barron’s, Bloomberg, CNBC, Forbes and SmartMoney and news publications like the Associated Press,
New York Times, Newsweek, TIME and USA Today.
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
BEN POUSTY
MARKETING MANAGER
212-832-2002 X-134
BPOUSTY@CORPORATEINSIGHT.COM

Auto Repair Financing - A Guide for Consumers

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Auto Repair Financing - A Guide for Consumers