Synchrony and Discount Tire: A 25-Year Partnership Pioneering Automotive Maintenance Finance

The automotive maintenance sector faces a perfect storm: aging vehicles, rising repair costs, and consumers struggling to afford critical services like tire replacements. Amid this challenge, Synchrony Financial (SYF) and Discount Tire have solidified their role as pioneers of accessible financing, leveraging a 25-year partnership to deliver solutions that are both innovative and enduring. Their renewed collaboration in 2025, extended beyond its quarter-century milestone, now spans over 1.3 million locations within the Synchrony Car Care™ network—positioning SYF as the gold standard in automotive financial flexibility.

The Power of Long-Term Partnerships

Since 1997, Synchrony and Discount Tire have refined their partnership into a model of strategic symbiosis. The CarCareONE credit card, central to this alliance, offers customers deferred interest promotions, zero annual fees, and exclusive rebates at 900+ Discount Tire stores across 39 states. But the partnership’s true scale lies beyond physical stores. The card’s acceptance at over 1 million locations in Synchrony’s Car Care network—encompassing brands like America’s Tire, Dunn Tire, and online platforms like TireRack.com—creates a nationwide ecosystem for automotive care.

This network effect isn’t just about reach; it’s about financial empowerment. With tire replacements averaging $400–$1,000 per set (per J.D. Power), flexible payment plans enable consumers to manage costs over time—a critical advantage as 75% of vehicles on U.S. roads are now over 6 years old.

Technology Meets Tradition: Apple Pay Integration

In 2025, Synchrony took a bold step forward by integrating the Discount Tire credit card with Apple Wallet, making it the only auto retailer card compatible with Apple Pay. This move mirrors Synchrony’s broader strategy to modernize retail finance, blending physical convenience with digital innovation.

The integration isn’t merely a gimmick—it’s a customer retention lever. Over 60% of Apple Pay users report increased spending due to its ease of use, and Synchrony’s early-mover advantage in automotive Apple Pay could lock in loyal customers. For investors, this signals SYF’s commitment to adapting to evolving payment trends, a necessity in a sector where 40% of millennials prefer digital wallets over traditional credit cards.

Financial Resilience Amid Sector Challenges

Synchrony’s Q1 2025 results underscore its financial fortitude despite macroeconomic headwinds. Net earnings of $757 million and a 22.4% return on tangible common equity reflect disciplined risk management, even as revenue dipped 23% to $3.7 billion. Key highlights include:
- A $2.5 billion share repurchase program and a 20% dividend hike to $0.30 per share, signaling confidence in SYF’s cash flow.
- A 23.3% CET1 capital ratio, exceeding regulatory requirements and enabling growth in high-demand sectors like automotive.
- Strategic diversification beyond Discount Tire, including new partnerships with Sun Country Airlines and American Eagle Outfitters, reducing reliance on any single vertical.

SYF’s stock has outperformed the S&P 500 by 15% in the past year, a testament to its focus on high-margin consumer financing. With a forward P/E of 8.5—well below peers like Capital One (13.2)—SYF remains undervalued despite its sector leadership.

Why Invest Now?

The automotive maintenance market is ripe for disruption. As vehicles age and repair costs soar, Synchrony’s partnership with Discount Tire offers a defensible moat:
1. Scale: The Car Care network’s 1.3 million locations dominate a fragmented industry.
2. Innovation: Apple Pay integration and deferred interest plans cater to cost-conscious, tech-savvy consumers.
3. Financial Strength: Synchrony’s capital ratios and dividend growth ensure stability through economic cycles.

With SYF trading at a 30% discount to its 5-year average P/B ratio and a dividend yield of 2.1%, this is a buy-and-hold opportunity. Investors who act now can capitalize on Synchrony’s position as the go-to provider for automotive financing—a necessity, not a luxury, in an era of $3-per-gallon gas and $1,000 tire bills.

Final Call to Action

The Synchrony-Discount Tire partnership isn’t just a relic of the past—it’s a blueprint for the future of consumer finance. With $100 billion in ending loan receivables and a customer base growing faster than the industry average, SYF is poised to dominate a $250 billion automotive maintenance market. For investors seeking resilience and growth, SYF’s blend of scale, innovation, and financial discipline makes it a must-own stock in 2025.

Act now—before the market catches up to this automotive finance leader.