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How AI Text Messaging Automation Helps Buy Here, Pay Here Dealerships

Buy Here, Pay Here dealerships, like any business handling customer payments, face challenges in communicating with borrowers. These businesses need to regularly and effectively remind customers about upcoming payments. However, limited staff and resources mean they can’t make unlimited calls or send countless reminders; so, ensuring payments keep flowing can be tricky.

Automated text messaging with Conversational AI is emerging as an ideal solution to these challenges. The adoption of a new, efficient communication channel for customers can significantly boost BHPH collection operations.

Powered by Generative AI, text message automation enables two-way, multi-turn, intelligent conversations between lenders and borrowers. Buy Here, Pay Here businesses are now adopting this technology to communicate with consumers effectively and affordably, helping them make payments on time.

In this article, we explore the potential of Conversational AI-powered text message automation in transforming the Buy Here, Pay Here industry, not only in terms of customer communication but also operational efficiency.

Why Conversational AI and Why Text Messaging?

Conversational AI is transforming collections into a more adaptive and efficient operation for dealerships. Buy Here, Pay Here dealerships have been using Voice AI to automate outbound collection calls, yielding impressive results. Now, industry leaders are extending additional self-service channels to consumers, including text messaging automation with AI.

  • Text messages have a remarkably high open rate of 80-99%.
  • About 90% of text messages are opened within 3 minutes of receipt.
  • Click-through rates with SMS can vary significantly but typically lie between 15-30%.

Conversational AI facilitates two-way, intelligent conversations with customers, answering questions and providing context-based information. Whether used for automating phone calls or text messages, Generative AI allows auto finance companies to optimize their recovery strategy.

Text message automation is great because it helps businesses stay in touch with customers regularly. Instead of playing phone tag or feeling annoyed by lots of calls, customers can chat whenever they want, in a way that’s easy for them.

AI-powered Text Massaging Turbocharges Outbound Outreach

How can you effectively incorporate AI-powered text messaging capabilities into your collection strategy?

A dealer wants to be able to reach all of its active customers frequently and effectively. While maintaining a dedicated staff is crucial, you can only afford so many live agents and they can only handle so many calls. Automation with artificial intelligence is essential to scale the number of calls or outreach via other channels such as text messaging.

Additionally, it’s important to diversify your communication efforts, so adding channels such as SMS alongside phone calls can greatly increase your chances of reaching all customers.

To adopt Conversational AI, there is no need to have dedicated IT staff on board. The solution can be deployed in as fast as 24 hours, so you can initiate your campaign as soon as tomorrow.

When applied to text message automation, Conversational AI enables auto finance companies to:

  • Reach borrowers on their smartphones, allowing them to reply at their convenience
  • Achieve scalability by handling as many conversations as needed
  • Send frequent reminders at every step of the collection cycle to maximize payments
  • Facilitate two-way, intelligent conversations with borrowers
  • Reduce the load on live agents for routine communication and outreach

Thanks to the scalable nature of AI automation, you can contact your customers as frequently as you want, empowering your team of live agents to handle more complex and revenue-generating tasks and perform their jobs more efficiently.

Additionally, offering self-service alternatives to live interactions will positively impact the customer experience (CX).


If you’re interested in learning more about how Conversational AI can enhance your collections strategy, use the chat tool below to schedule an appointment with one of our experts!

Automate Your Auto Finance Collections with AI-Powered Text Messaging

Auto finance companies, like all businesses dealing with consumer payments, face a few innate challenges when it comes to communicating with borrowers. Regular outreach to borrowers to remind them of future and due payments is an essential part of the day-to-day operations of an auto finance business to avoid delinquencies.

Common challenges include resource limitations, rising costs, and the inability to send out frequent reminders and handle all inbound calls. As such, reaching consumers at all stages of the collection cycle—from pre-due date reminders to late-stage collections—can be a complex process.

Two possible solutions to these challenges are leveraging top-tier technology and diversifying communication methods. Conversational AI and automated messaging have ushered in new, efficient communication channels with customers, significantly boosting auto finance collection operations.

Powered by Generative AI, text message automation enables two-way, multi-turn, intelligent conversations between lenders and borrowers. This technology is now emerging as a pivotal tool for auto finance companies to communicate with consumers in an effective and cost-efficient manner, helping consumers make payments on time and avoid charge-offs and repossessions.

In this article, we explore the immense potential of Conversational AI-powered text message automation in transforming the auto finance sector, not only in terms of customer communication but also operational efficiency.

Why Conversational AI and Why Text Messaging?

Conversational AI is transforming auto finance collections into a more adaptive and efficient operation. This technology employs natural language processing to understand and respond to customer inquiries, making the process more conversational and less transactional.

Auto finance companies have been using Voice AI to automate both inbound and outbound collection calls, yielding impressive results. Now, industry leaders are extending additional self-service channels to consumers, including text messaging automation with AI.

  • Text messages have a remarkably high open rate of 80-99%.
  • About 90% of text messages are opened within 3 minutes of receipt.
  • Click-through rates with SMS can vary significantly but typically lie between 15-30%.

Conversational AI facilitates two-way, intelligent conversations with customers, answering questions and providing context-based information. Whether used for automating phone calls or text messages, Generative AI allows auto finance companies to optimize their recovery strategy.

The core advantage of text message automation is that it maintains a regular, timely, and non-intrusive communication line with customers. Instead of ignoring calls or feeling exasperated with numerous phone conversations, customers can engage at their convenience and in a format that feels most natural to them.

AI-powered Text Massaging Turbocharges Outbound Outreach

How can you effectively incorporate AI-powered text messaging capabilities into your collection strategy? Let’s start with the outbound use case.

An auto finance business wants to be able to reach all of its active customers frequently and effectively. While maintaining a dedicated staff is crucial, you can only afford so many live agents and they can only handle so many calls. Automation with artificial intelligence is essential to scale the number of calls or outreach via other channels such as text messaging.

Additionally, it’s important to diversify your communication efforts, so adding channels such as SMS alongside phone calls can greatly increase your chances of reaching all customers.

When applied to text message automation, Conversational AI enables auto finance companies to:

  • Reach borrowers on their smartphones, allowing them to reply at their convenience
  • Achieve scalability by handling as many conversations as needed
  • Send reminders at every step of the collection cycle—including pre-due, early-stage, late-stage, and high-risk—to avoid delinquencies
  • Facilitate two-way, intelligent conversations with borrowers
  • Reduce the load on live agents for routine communication and outreach

24/7 Customer Service with Inbound Conversational AI

Now, let’s move on to the inbound use case.

As you intensify your outreach efforts and increase the number of outbound communications, borrowers will start contacting your business to make payments or inquire about their accounts, and that’s when you’ll know it’s important to augment also your inbound service with Conversational AI.

Conversational AI gives you the ability to reduce wait times to zero seconds and assist borrowers immediately. When you deploy text messaging automation for inbound communications, you offer 24/7 customer service able to assist customers at any time of the day and week.

Offering self-service alternatives to live interactions will positively impact the customer experience (CX).

Augmenting inbound communications with AI enables your live agents to focus on complex queries and important tasks. As the AI solution addresses the low-hanging fruits, your agents are empowered to do their job more efficiently.


If you’re interested in learning more about how Conversational AI can enhance your collections strategy, use the chat tool below to schedule an appointment with one of our experts!

Boost Your Text Message Debt Collection Strategy with AI

For third-party debt collection agencies, consumer outreach has always been a multilayered challenge. Because of resource limitations, strict compliance requirements, prohibitive costs, and the difficult ecosystem of consumer collections, it’s rarely easy to reach debtors, with account penetration, right-party contact, and payment recovery being some of the hurdles faced by collectors.

Diversifying the communication methods and leveraging top-tier technology are two solutions to these challenges. The rise of Conversational AI and automated messaging is opening new and efficient channels for communication with consumers, which can significantly boost third-party debt collection operations.

Until recently, few collection agencies would have considered investing in automated text messaging for one simple reason: the technology was not up to par with the needs of the industry, given the lack of two-way communication, user verification, and compliance capabilities.

But now, thanks to Generative AI, things are changing. Text message automation powered by Generative AI handles two-way, multi-turn, intelligent conversations with consumers utilizing the same Conversational AI technology of top-tier Voice AI, all in compliance with the applicable regulations.

In this article, we’ll outline the immense potential that text message automation using Conversational AI has for transforming the industry, both in terms of debtor communication and operational efficiency.

Conversational AI: A Game Changer for Debt Collection

Conversational AI is enabling debt collection to be more adaptive and efficient. This technology relies on natural language processing to understand and respond to consumer inquiries, making the process more conversational and less transactional.

Debt collection agencies have already been relying on Voice AI to automate both inbound and outbound collection calls, delivering impressive results. Now, leaders in the industry are offering additional self-service channels to consumers, so that everyone can utilize the channels they prefer. One of them is text messaging automation with AI.

  • Text messages have a remarkably high open rate, estimated to be between 80-99%.
  • 90% of text messages are opened within the first 3 minutes of receipt
  • Click-through rates with SMS (i.e. clicks on links within the SMS) can vary greatly, but they’re estimated to be somewhere between 15-30%.

Conversational AI handles two-way, intelligent conversations with consumers, answering questions and providing context-based information. Whether you want to use it to automate phone calls or text messages, you’ll be able to harness the power of Generative AI to take your recovery strategy to the next level.

How AI-powered Text Messaging Fits into Your Recovery Strategy

When applied to text message automation, Conversational AI enables debt collection agencies to:

  • Reach consumers on their smartphones and enable them to reply whenever and however they prefer
  • Handle two-way, intelligent conversations via SMS on outstanding debt and resolution options
  • Reduce the burden on live collectors for routine communication and outreach
  • Share time-sensitive information such as payment reminders, settlement offers, and deadline alerts in real time
  • Integrate seamlessly with existing software and workflows

The core benefit of text message automation lies in its ability to maintain a consistent, timely, and unobtrusive line of communication with consumers. Rather than ignoring calls or becoming frustrated with multiple phone conversations, consumers can engage on their schedule, in a format that is increasingly the most natural to them.

So, how does adding AI-powered text messaging affect your recovery strategy?

Text messaging offers convenience and personalization. When a consumer feels that an agency understands their circumstances, and offers a practical and convenient way to settle their debt, the chances of recovery increase. AI-driven text messages can:

  • Respond immediately to queries or requests, expediting the recovery process
  • Offer personalized payment plans in installments or settlements
  • Monitor and adapt communication strategies based on consumer response trends

By leveraging AI to handle the logistics of communication, third-party agencies can focus human resources where they are most effective—on complex conversations and personalized negotiations that demand a human touch. AI is not meant to substitute live agents, but rather to augment their work.

AI’s Role in Mitigating Compliance Risks with Text Messaging

With the intricate web of federal and state regulations impacting the debt collection industry, compliance is always a top priority when developing new technology for debt recovery. When properly deployed, technology can actually act as a shield against compliance breaches.

Our text automation solution is programmed with several filters and settings to ensure compliance in terms of outreach frequency, Mini-Miranda (FDCPA), user authentication, and opt-out requests. Thanks to the bot’s capabilities to discern intent, opting out is easy and can be done via a wide variety of keywords.

Enhancing the Overall Consumer Experience (CX)

Consumer experience is also an important aspect to keep in mind when it comes to debt recovery, despite being one of the most overlooked ones. CX might sound out of place here, and yet the experience consumers have when interacting with your agency can greatly impact their approach and behavior.

Offering self-service alternatives to speaking with a live collector can greatly impact the consumer experience, and text messaging is one of the most utilized communication tools, making it a safe bet. Text messaging automation speeds up the resolution process and reaches demographics that typically don’t enjoy phone calls, such as younger consumers.

Additionally, Skit.ai’s text messaging solution is context-dependent and keeps track of previous conversations with the same consumer on other channels, as well, such as phone calls via Voice AI.


Are you interested in learning more about how Conversational AI can improve your collections strategy? Use the chat tool below to schedule an appointment with one of our experts!