Pre-approvals gain traction and are highly effective as 60% of customers applied for pre-approval after researching on-line, according to initial findings from the upcoming J.D. Power 2021 Automotive Consumer Financing Satisfaction Study
Luxury market and mass customers are researching automotive financing options prior to visiting a dealer. Many times that research leads to customers not only applying for pre-approval, but using that offer at a very high rate.
Aspects of the process lenders need to consider:
- Do current digital channels provide for the opportunity for current and potential customers to apply for a pre-approval?
- What is the take rate and use differences between “applied for” pre-approvals and unsolicited pre-approvals?
- What are the top reasons customers are “flipped” out of their pre-approval status by dealers?
- What actions can lenders take to reduce the chances of pre-approved customers from being “flipped?”
Effective use of “applied for” and “unsolicited” pre-approvals, can lead to greater customer recapture rate and conquest opportunities.
Learn more when results of the J.D. Power 2021 Automotive Consumer Financing Satisfaction Study publish on November 4, 2021. This study encompasses the customer journey from shopping through servicing, including how digital (website and mobile app) is used within each piece of the process.
In 2021, we redesigned the study to capture critical components of the financing process:
- Shopping, NPS and Financial Health (Included, but not a part of the index model)
- Account Management & Communications: Understand provider-initiated communications and recurring non-problem related customer-initiated interactions
- Customer Care: Focus on non-recurring, problem related interactions based on the channel used, capturing whether initial channel used was sufficient or if additional channels were used to solve problem
A study subscription provides access to the insights and tools needed to gain a comprehensive, in-depth understanding of how your firm may be performing and to identify key areas needing improvement. Subscribers gain access to results on November 4, 2021. Key findings and rankings will be released in a press release on November 16, 2021. Read last year's press release here. Join our mailing list to receive the latest product news and updates.
