Fix Now Pay Later: Everything You Need to Know in Nigeria

Fix Now Pay Later

Fix Now Pay Later (FNPL) is a financing model in Nigeria designed to help individuals and businesses manage the costs of vehicle repairs or maintenance. This model allows vehicle owners to get their cars fixed immediately and defer the payment to a later date.

The FNPL is a growing concept in Nigeria. It helps spread the cost of payment over time. The aim is to provide a convenient and flexible payment option, easing the financial burden on customers who might not have the necessary funds upfront for repairs.

A typical example of Fix Now Pay Later companies in Nigeria is "Flickwheel", "Mecho Autotech", "Fixit45", and "Cardio Autotech".

About Flickwheel's FNPL Service in Nigeria

Flickwheel's Fix Now Pay Later service addresses the common challenge in Nigeria of accessing qualified vehicle technicians by offering a unique financing model for vehicle repairs and maintenance. This service differentiates itself from competitors like Mecho Autotech, Fixit45, and Cardio Autotech, who primarily connect vehicle owners with mechanics.

Flickwheel focuses on providing quick financing options, enabling users to unlock funds in less than 24 hours and repay over four months with interest rates ranging from 8% to 24%. This ensures vehicles are repaired promptly while mechanics receive immediate payment, fostering a more efficient and reliable repair process.

The financing model has proven beneficial for both mechanics and vehicle owners. For mechanics like Samuel, Flickwheel's service means increased business as customers no longer delay repairs due to lack of funds. This also builds customer loyalty, as vehicle owners appreciate the access to skilled technicians and the quick, reliable service.

Flickwheel has maintained a low default rate of less than 5% and has provided financing for 200 vehicles, charging a ₦10,000 service fee for financing and a 20% fee for users who opt for vetted technicians without financing.

Flickwheel has expanded its offerings beyond repair financing. It recently launched a subscription service for preventive maintenance, including vehicle renewals and roadside assistance, with subscriptions ranging from ₦10,000 to ₦25,000.

The startup also aims to maintain large vehicle fleets and is developing a portal for users to verify vehicle history, charging ₦5,000 per vehicle. To enhance the reliability and professionalism of technicians, Flickwheel offers regular repair updates via a mobile app and has built a network of 30 vetted auto workshops recommended by users.

To ensure quality and scalability, Flickwheel plans to implement a robust quality assurance system where customers can rate services on the mobile app. Although mechanics cannot currently view these ratings, a dedicated app for them is in development.

Flickwheel also aims to invest in technicians' skills by providing financing for tools and training, repayable over three years. This strategic focus on funding and skill development is part of Flickwheel's broader goal to build a scalable, high-quality service network, supported by its ongoing efforts to raise $2 million in debt and equity through the Accelerate Africa accelerator program.

Features and Benefits of Fix Now Pay Later in Nigeria

  1. You can get your vehicles repaired without having to wait until you have the full amount required for the service.
  2. Payment for the repairs is deferred to a later date, which could be structured as installments over a specified period.
  3. However, depending on the service provider, there might be interest or additional fees associated with the deferred payment option.
  4. You should also know that, often, the FNPL business model is offered through partnerships between automotive service providers and financial institutions or fintech companies. But Flickwheel is the mechanic comapany primarily offering the service; unlike Mecho Autotech, Fixit45, and Cardio Autotech, they don't connect vehicle owners with mechanics.
  5. In addition, you might need to meet certain eligibility criteria, such as having a good credit score or providing proof of regular income, to qualify for the FNPL service.

The Bottom Line

The "Fix Now Pay Later" model reflects a broader trend in financial services where consumers are given more flexible payment options to manage their expenses. It offers convenience to customers who need urgent vehicle repairs but might be cash-strapped at the moment.

However, do note that this concept is not only in automobile industry, it's also applied broadly in telecommunication space such as Carlcare, an official service provider for Tecno, Infinix, and Itel.

This innovative model not only addresses the challenge of finding qualified technicians but also fosters a reliable and efficient repair ecosystem.

It also helps integrates preventive maintenance subscriptions and develop a quality assurance system to enhance the service-rendering industry significantly and give a long-term impact and growth in the Nigerian market.

About the author

Temmy Samuel
He is an aspiring accountant with a strong foundation in financial analysis, auditing, and tax accounting. Currently pursuing a degree in Accounting at Federal University Oye-Ekiti, he's excelled in key subjects such as financial reporting, cost…

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