New research shows consumers are putting payment choice first at dealerships
PayJunction, a leading tech-focused payments company, released new research demonstrating that when faced with a credit card surcharge, consumers are more likely to change their payment method than their dealership. The findings suggest that dealerships can preserve customer loyalty while managing rising payment acceptance costs by giving customers more freedom in how they pay.
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Of those surveyed, 71% strongly or somewhat agreed that a credit card surcharge would not impact the dealership they choose. At the same time, more than half (51%) indicated they would consider switching to cash, debit or check for routine maintenance if a surcharge was applied, while 49% said they would do so for repairs. Together, the findings suggest that consumers would rather change how they pay rather than where they buy.
Other key findings from the survey include:
- Respondents prioritize having a choice in how they pay when faced with a surcharge. Most consumers surveyed indicate that a surcharge would not impact their choice of dealership. Seventy-one percent strongly (30%) or somewhat (41%) agree that a credit card surcharge would have no impact on the dealership they choose to do business with.
- Credit cards remain popular because of the financial flexibility they provide. Eighty-two percent of participants indicated they would consider using a credit card when asked to select all payment methods they’d consider for a large, unexpected repair. Among the top reasons cited for choosing a credit card were the ability to earn rewards or cashback (60%) and having more time to pay off purchases (53%). Routine maintenance (73%) and repairs (67%) were the dealership services respondents most frequently selected as purchases they would put on a credit card, even with a surcharge of up to 3%.
- Installment financing holds clear appeal as a way to manage unexpected repair costs. Nearly half (49%) of respondents would consider Buy Now, Pay Later for a large, unexpected repair, with interest highest among millennials (60%) and Gen Z (54%). The ability to spread out payments (63%) and preserve cash (57%) were the most frequently cited motivations.
“Our research shows that customers aren’t asking dealerships to eliminate surcharges. They’re asking for a choice,” said Randy Modos, president and co-founder at PayJunction. “When dealerships offer broader payment options, like credit cards for those who value rewards and debit and cash for those who want to avoid a fee, they protect both customer loyalty and their own payment economics. Payment flexibility is the new retention strategy.”
The findings suggest dealerships have an opportunity to improve customer satisfaction by expanding choice for payments rather than relying on a single preferred payment method. Modern payment technology that supports compliant surcharging alongside debit, ACH and BNPL gives consumers greater flexibility while helping dealerships better manage payment acceptance costs. As affordability concerns and unexpected repair expenses reshape how customers think about vehicle ownership, the dealerships that build for payment flexibility are better equipped to protect revenue and long-term customer relationships.
PayJunction surveyed 500 current U.S. car owners. All respondents were over 18 years old and had visited a car dealership in the last 12 months.
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