New PayJunction Data Reveals the Importance of Payment Choice at the Dealership
When dealerships add a credit card surcharge, customers don't necessarily walk away. They adapt.
In PayJunction’s recent survey of 500 U.S. car owners who visited a dealership in the past year, 71% of respondents strongly or somewhat agreed that a credit card surcharge wouldn't impact the dealership they choose to do business with.
But that doesn’t mean the remaining 29% will automatically take their business elsewhere. Instead, our findings suggest that car owners are more likely to change how they pay than where they buy. This is especially true when dealers offer customers the freedom and flexibility to choose other payment methods, like cash or debit, if they prefer to avoid the surcharge.
In fact, many customers are already accustomed to using different payment methods depending on the situation. For dealerships, offering the freedom to choose how to pay can support customer loyalty, and optimizing the way those choices are presented can help dealers manage the growing pressure around payment acceptance costs with surcharging, without sacrificing the customer experience.
Key Insights:
- The majority of car owners surveyed (71%) strongly or somewhat agree that a credit card surcharge would not impact the dealership they choose, with 30% strongly agreeing.
- Car owners seemingly prefer credit card payments for the flexibility and financial control they provide, as well as the convenience of methods like Buy Now, Pay Later (BNPL).
- The 29%* of respondents who disagreed that a surcharge would have no impact on their dealership choice show a stronger preference for payment flexibility, favoring cash, debit or check for repairs.
- By implementing intelligent payment technology, dealerships can offer customers the freedom to choose how they pay, with clear options to avoid a surcharge while keeping payment acceptance costs in check.
*Base: Comparison of respondents who somewhat or strongly disagreed (29%) with the statement, "A credit card surcharge would have no impact on which dealership I choose to do business with" with those (59%) who agreed that they would prefer “to pay with cash, debit card or check to avoid a surcharge” on various card dealership services.
Insight 1: Flexibility Drives Credit Card Popularity
Credit cards remain a go-to payment option at the dealership, with routine maintenance (73%) and repairs (67%) emerging as the services respondents indicated they would be most likely to pay for with a credit card.
But why do consumers gravitate toward using credit cards, even when a surcharge applies? Our findings reveal two main motivations:
Improving financial planning
Credit cards remain a popular payment option among car owners because of the rewards and flexibility they offer. When asked why they would pay by credit card despite the surcharge, respondents most frequently selected a range of practical and financial benefits.
Managing financial stress
Car owners also see credit cards as a safety net when facing unplanned expenses. When asked to select all payment methods they would consider to cover a large, unexpected repair:
- 82% said they would consider using a credit card
- 42% would consider using a debit card
- 25% would pay with cash
- 19% would pay with check
Consideration of credit cards is even higher among car owners with firsthand experience: 88% of respondents who visited a dealership for a repair or unexpected service in the past year indicated they would consider using a credit card for an unexpected repair, compared to 82% of all respondents.
While car owners demonstrate strong consideration of credit card payments, they’re ultimately seeking financial control. Dealerships can meet that demand by offering alternative financing solutions that offer similar flexibility and agency.
Note: The 88% figure is based on the subset of respondents who reported visiting a dealership for a repair or unexpected services within the past 12 months, not the full survey sample.
Insight 2: BNPL Is a Complement to Credit Cards, Not a Replacement
Nearly half of the car owners surveyed (49%) indicated they would consider using Buy Now, Pay Later (BNPL) financing to cover a large, unexpected repair bill.
Like credit cards, BNPL appeals to consumers because it offers an opportunity to spread out payments and preserve cash flow.
Interest in BNPL reflects a broader financial reality. According to the Federal Reserve’s 2025 Report on the Economic Well-Being of U.S. Households, only 63% of U.S. adults said they would cover a $400 emergency expense using cash or its equivalent. For many car owners, financing may provide a way to cover unexpected repairs while preserving available cash or avoiding an increase to their credit card balance.
However, the findings suggest that BNPL complements rather than replaces credit card payments. Each payment method provides distinct advantages, and dealerships that provide both options may be better positioned to meet a range of customer needs.
Insight 3: Surcharges Influence Payment Behavior
While 71% of respondents strongly (30%) or somewhat (41%) agreed that a credit card surcharge wouldn’t impact the dealership they choose to do business with, most car owners indicated they still want the option to avoid surcharges.
In fact, 93% of respondents indicated they would prefer to pay cash, check or debit for at least one dealership transaction if a surcharge applied. The most frequently selected transactions included:
- Routine maintenance (51%)
- Repairs (49%)
- Down payments (43%)
Among the 29% of car owners surveyed who disagreed that a surcharge would have no impact on their dealership choice, 59% indicated they would prefer to pay with cash, debit or check for repairs to avoid a surcharge, compared with 48% of respondents who agreed that a surcharge would have no impact.
Surcharges won't always drive customers away, but they may encourage them to consider other payment methods. Whether a car owner chooses to pay by credit card, debit, or BNPL, dealerships that clearly communicate surcharge-free payment options may have the upper hand.
Note: The 93% figure represents the percentage of respondents who selected at least one dealership service for which they would prefer to pay by cash, debit card, or check to avoid a credit card surcharge. This figure was calculated from responses to the multiple-select survey question and is not the result of a single survey response.
Using Modern Technology to Improve the Dealership Payment Experience
Our findings point to a critical opportunity for dealerships: offering customers more payment choices can help dealerships realize the benefits of surcharging while accommodating a range of customer payment preferences and preserving the customer experience. Here are three ways dealerships can meet that demand:
- Offer payment options for different financial needs: Car owners aren't just looking for a way to pay. They want the benefits that different payment methods provide, such as rewards, purchase protection and cash flow flexibility. Offering credit card alternatives like BNPL gives customers another way to manage dealership expenses based on their financial situation.
- Build a payment mix that supports choice: Customers are not always saying “no” to surcharges, but they are saying “give me a different choice.” Technology that supports compliant surcharging alongside debit, ACH and BNPL enables dealerships to offer payment flexibility while staying in control of payment acceptance costs.
- Reinforce payment options at the right moments: Transparency helps customers choose the best payment method for their financial situation, which can reinforce dealership trust. Consider how you present alternative payment options during the service experience to help customers make informed decisions, especially for services like routine maintenance and repairs that can trigger customers to seek out credit card alternatives, like Buy Now, Pay Later.
Give Car Owners More Ways To Pay with PayJunction
Our research suggests that car owners value freedom of payment choice at the dealership. Ultimately, customers appear more inclined to change their payment method than their dealership, presenting an opportunity to better meet customer payment preferences.
When payment technology makes it easy to offer both compliant surcharging and diverse payment options, everyone wins. Customers stay in control, and dealerships can better accommodate customer payment preferences while managing payment acceptance costs.
Learn how PayJunction can help your dealership deliver a more flexible payment experience while increasing profitability.
Methodology
In May 2026, 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.
