Jul 1, 2021
Auto dealerships and lenders are continuing to struggle with the fallout of the global pandemic. Supply remains low due to the global shortage of computer chips. According to a report from Cox, toward the end of May, the total U.S. supply of available unsold new vehicles stood at 1.78 million units, down from 2.24 million at the same time in April. The low supply in combination with higher consumer demand and higher prices kept this past Memorial Day from being as successful as past years. Be sure your community bank or credit union is prepared to capture as much auto loan growth as possible during the 4th of July specials!
Make the financing process as smooth and simple as possible for car buyers who can find the car they want. Ensure your pricing is competitive. Determine the volume of auto loans your institution can reasonably take on. Are you prepared to take in borrowers across the credit spectrum? The sooner you’re ready for the eager car buyers, the better off your bank or credit union – and your borrowers – will be.
Many buyers who need a car may still be experiencing some financial struggles. Plus, until the computer chip shortage is resolved, prices across the auto industry will continue to increase. Every borrower will have different needs, so be sure that you have a clear understanding of what they can afford.
Handling so many applications and addressing the needs of so many borrowers at once can be a challenge. Lenders Protection™ from Open Lending can help you streamline this process using advanced data analytics that allows your institutions to increase your lending volume and set a targeted ROA without adding significant risk to your auto lending portfolio.
This July 4th may not be as much of a roaring success as previous years, but financial institutions can still reach for their slice of the apple pie! Help consumers get the financing they need in seconds through Open Lending’s Lenders Protection™.
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