Optimizing Digital Auto Lending to Overcome the Captive Advantage
- Date:December 22, 2020
- Author(s):
- Austin Kilgore
- Report Details: 19 pages, 5 graphics
- Research Topic(s):
- Digital Lending
- PAID CONTENT
Overview
Traditional auto lenders face tremendous competition from disruptive startups seeking to redefine how consumers shop for, purchase, and ultimately use cars. This report examines new models for auto lending and leasing, how market newcomers are attracting consumer interest, and how the relationships among dealers, lenders, and consumers are evolving.
Key questions discussed in this report:
- How has the COVID-19 pandemic affected auto finance?
- How can banks, credit unions, and other lenders compete with manufacturers’ captive lending units?
- How do fintech lenders offer a different approach from traditional auto finance participants?
- How must auto lenders adapt to the changing dynamics of vehicle type, price, and consumers’ use of automobiles?
Methodology
Consumer data in this report was collected via an online survey fielded in April 2020, consisting of 1,000 consumers who obtained at least one auto loan or lease on or after January 2018.
Book a Meeting with the Author
Related content
Cash App P2P Lending and the Banking Liquidity Blind Spot
Cash App’s new feature that allows users to break P2P payments into short-term loans recognizes that short-term liquidity isn’t about traditional lending; it’s about meeting a mome...
Chime’s Digital Lending Playbook: Small Dollars, Big Ideas
Rather than competing with banks on loan volume or profitability, Chime’s lending playbook focuses on solving basic consumer cash flow issues through proactive decisioning, frictio...
What Lenders Can Learn from Fintech Chatbots
Javelin’s diagnostic analysis of AI-powered consumer-facing chatbots for 11 fintechs, non-bank lenders, and retail banks found that retail FIs consistently fail to provide personal...
Make informed decisions in a digital financial world