Pay-later spreads, AI estimates grow

1stMILE and Splitit are rolling out a buy now, pay later option built for auto repair, letting customers split eligible repair bills into monthly installments using a credit card they already have. The rollout started in July across thousands of markets and is expected to reach 1stMILE's network of more than 17,000 partnered shops. The pitch to owners is simple: the shop gets paid in full upfront while the customer spreads the cost over time.

The problem it targets is a familiar one. Repairs are the most common emergency expense people face, with a median around $574, and many customers delay or decline work they cannot absorb in one hit. This version skips the usual pain of a separate loan application or credit check, since it runs off credit the customer already has on their card, which the companies say drives an average approval rate of 85% or higher.

Why it matters: This may signal how much payment flexibility is becoming a standard part of the repair conversation, not a nice-to-have. When a customer can say yes to a needed job instead of putting it off, that is a repair completed rather than lost. For some shops, it is worth considering whether an installment option at the terminal helps close more of the higher-ticket work that customers might otherwise walk away from.

Crash Champions is widening its use of CCC's Mobile Jumpstart 2.0, an AI-based mobile estimating tool, across its network after renewing its agreement with CCC. The tool uses AI and computer vision to guide photo capture and label images in real time, which the companies say helps build estimates faster and with less administrative work. Crash Champions was the first large multi-shop operator to adopt the tool back in 2025.

The numbers CCC cites are the headline. The tool captures an average of 84% of the final repair bill in about 70 seconds, compared with a manual process that typically runs 15 to 30 minutes. Crash Champions runs more than 650 repair centers across 38 states and also uses CCC's financing and VIN-specific build-sheet tools.

Why it matters: This could reinforce how quickly AI is moving into everyday shop workflows, starting with the paperwork rather than the wrench. When a large operator leans on automated estimating to free up staff time, it suggests where the efficiency pressure is landing. For some shops, it is worth weighing whether faster, more consistent estimating is worth adopting to keep pace, especially where you compete with larger operators on turnaround.

Tesla is recalling roughly 20,000 Model 3 and Model Y vehicles after determining that some low-beam headlights may put out more light than federal rules allow. The company said the extra brightness could reduce visibility for both the driver and oncoming traffic, raising crash risk. The recall covers Model 3 vehicles from 2017 through 2023 and Model Y vehicles from 2020 through 2023, and a fix is still being developed, with owner notices expected in mid-September.

This is at least Tesla's fifth NHTSA recall of the year, following earlier actions over rear-camera issues and other faults. Separately, regulators are still investigating 1.2 million Tesla vehicles over reported suspension failures, an issue we covered earlier this month.

Why it matters: This may signal how much of today's recall activity centers on software and compliance rather than broken hardware. A headlight brightness problem is the kind of issue that can often be addressed with a calibration or update rather than a parts swap. For some shops, it is worth considering that as these fixes stay largely inside the dealer network, your role may be less about the repair itself and more about spotting open recalls when these cars come in for other work.

🔩 Parts Authority acquired Miami-based NPW Companies, folding in 46 locations to reach nearly 325 stores and extending its footprint into five new states.

🔍 Boyd Group, parent of Gerber Collision & Glass, pointed to scanning and calibration as a key growth area and said it plans to keep buying smaller regional multi-shop operators.

🚢 Ohio Sen. Bernie Moreno urged federal officials to crack down on illegal parts transshipment, arguing that routing Chinese goods through third countries to dodge tariffs threatens U.S. manufacturers and jobs.

🔧 Stellantis is recalling about 1.27 million Ram 1500 trucks from model years 2019 to 2026 over second-row seat belt buckle anchors that may not be properly attached, with free dealer inspections.