By John Flynn, Open Lending CEO & Chairman
In coronavirus environment, digital has skyrocketed to the forefront of the car shopping experience, but it was moving that way prior to 2020. Current events have only accelerated the trend. If we take a look at car buyers’ behavior to the pandemic, we can this time reshape the buying and consumer car loan experience into a substantially more enjoyable and less time-consuming experience.
A 2019 report released by Cox Automotive, Inc, found that 61% of consumers felt their car-buying experience was the same or worse than it had been previously. One of the major concerns was completing loan paperwork and financing when purchasing a vehicle. More than 83% of customers researched vehicles online, but just 5% could complete their loan applications digitally.
Cox followed up with an additional study during the pandemic and found that more than 40% of car buyers completed more tasks related to their car-buying process online than they had in the past; another 71% wanted to be able to do more. Add to this that many dealers are facing reduced hours and staff. How can your credit union leverage technology to do more with less?
Consumers are less accepting of the prior average of more than 3.5 hours spent in the dealership to complete their auto purchase. As a matter of fact, the 2019 survey found those who completed paperwork online were almost 10 percentage points more satisfied with their purchase, 74% online vs. 65% in person.
That’s where Open Lending can help your credit union drive that business through your dealer partners. With our digital platforms, car buyers can complete their loan applications online, as well as submit the necessary paperwork. We leverage that data, balancing it with our proprietary data spanning decades of auto buying and lending, to provide rapid decisions based on your credit union’s criteria. As a matter of fact, our platform responds within an average of 5 to 7 seconds, regardless of the borrower’s credit history. Watch what our clients are saying about Open Lending!
Now is the time to invest in developing new practices and procedures, because these trends aren’t going away. It’s table stakes. Car buyers seek out solutions to allow them to shop for their vehicles, car loans and negotiate pricing online. Open Lending gives you the flexibility to enable your auto dealership partners to handle completing the loan process before the buyer even sets foot in the dealership. Improve your member experience now, and your members will thank you for years to come. Contact Open Lending today!