It is no secret that consumer buying trends have changed immensely throughout the pandemic. But there are several changes that consumers will adopt permanently, specifically the shift to everything being available at their fingertips. The following three trends are here to stay, and here’s how your financial institution can gain a competitive edge by staying ahead of them!

First, we’ve all heard of online buying platforms such as TrueCar, Carvana, and Vroom where consumers can get a car delivered right to their door. But how do they get financing through these platforms? Some have in-house financing options and some partner with banks and credit unions. This presents a golden opportunity where your financial institution can investigate expanding your auto lending portfolio by digital integration with an online buying platform. Prioritize building relationships with these online platforms in 2022, and Open Lending can help expand your lending abilities even further.

Second trend: electric vehicle buying is on the rise. These cars have been making their way onto our roads, highways, and parking lots with electric docking stations now available in many areas. According to Ford, it expects 40% to 50% of its global vehicle volume to be fully electric by 2030. That is just one of many manufacturers with electric automobile production plans in the works.

What does this mean for your financial institution? What does your green auto loan portfolio look like, and what are the risks and rewards? These types of loans usually come with a variety of incentives such as interest rate discounts or longer repayment terms that make them more affordable for the consumer. According to a recent Bankrate article, there are plenty of benefits to green vehicles, including lower carbon dioxide emissions, less maintenance, fewer fuel stops and quieter engines. Could this be another opportunity to expand your financial institution’s auto loan portfolio?

A third trend is consumers opting to refinance auto loans. According to Transunion, refinancing can represent a potential lending opportunity of hundreds of billions of dollars. With the production of new cars slowing down due to the global chip shortage, this trend offers a way to deepen relationships with your existing member base. It also provides less risk when working with those who have a proven track record of loan repayment.

Let Open Lending help your bank or credit union mitigate the risk of auto lending by saying ‘yes’ to more loans and staying ahead of these trends! Contact us today.