The automotive industry has made progress toward getting back to normal, but a couple of large hurdles remain.
Memorial Day weekend is usually when auto dealerships and lenders expect bargain hunters to get outside and look for deals on a new car, but this past May, prospective buyers were lucky if they could even find a car! Shoppers are still having to deal with reduced inventory on auto lots, and what’s there may not be the car the buyer wants. Auto lenders will need to continue looking for opportunities throughout the summer and the rest of this year, so here are three marketing trends to keep an eye on:
- Early Preapprovals
According to an article from CUManagement, prospective car buyers conduct an average of 13-14 hours of research before visiting a dealership. However, this research time is likely to be extended while inventory remains scarce, providing your community bank or credit union a little extra time to reach those buyers with a multichannel, preapproval auto loan marketing campaign. Even if the entire car-buying process takes longer than expected, if consumers know your financial institution is offering auto loans that work for them, your bank or credit union will remain top-of-mind.
- Education
For younger consumers buying a car for the first time, offering educational resources can be very helpful! Navigating an auto market that’s still having challenges could be very confusing for many Gen Zs and millennials, so consider the process from their perspective and provide educational resources on those issues to answer any questions they might have. Dedicate an entire section of your website to financial coaching and include courses and tutorials on how to navigate vehicle financing.
- Digital Branding
American consumers are returning to dealerships to look for cars, so digital marketing and branding are more relevant than before to ensure your institution is top-of-mind when they’re faced with multiple dealer financing opportunities. Many people are still using third-party websites, like TrueCar, to look for and buy cars, so it’s crucial your financial institution has a digital advertising presence. Not only will you be bringing in more auto loans, but you will also be providing consumers the opportunity to streamline the financing process and not worry about doing it at the dealership.
And when all those car loan applications start rolling in, Open Lending’s Lenders Protection™ is here to help you say ‘yes’ to more loans!