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Auto Lending: How to Think Consumer First

Josh Herbert
Blog Post12/04/2019
Business Credit Trends and Reporting
Consumer Credit Origination, Balance and Delinquency Trends: Q3 2019

In the Consumer First Era, the balance of power has shifted to the consumer. As consumer loyalty dynamics have changed, lenders are adjusting their strategies to acquire new customers or get more wallet share from existing customers.

With more choice at their fingertips, consumers are more empowered to shop for the best rates and seek out an experience that is seamless, safe and fast. Over 70% of abandonment rates in finance result from consumers being distracted or changing their mind, lenders asking for too much personal info or the form is too long, according to SalesCycle.

This shift in consumer preference and expectation is especially apparent in auto loans.

During the consumer journey in auto, there are several online expressions of consumer intent, known as micro-moments,[1] such as:

  • Which car is best?
  • Is the car right for me?
  • Can I afford it?
  • Where should I buy it?
  • Am I getting a deal?

While new and established companies have adjusted their online experiences to address many of these micro-moments, lenders do not often address the affordability portion of the consumer journey. In fact, a Deloitte Consumer Journey study found that 6 in 10 consumers want to secure financing before visiting the dealership. This represents an opportunity for platforms and lenders to deliver a personalized, Consumer First experience.

Let’s explore how the current auto finance process doesn’t match consumers or dealers’ needs.

Consumers are trying to… Dealers are trying to…
Understand financing options Receive higher quality leads and increase conversions
Reduce time in the dealership Reduce time to complete loan paperwork
Gain more transparency into the process Increase consumer satisfaction

With a Consumer First solution like TransUnion’s Auto Payment Shopper, lenders can help consumers easily locate vehicles they can afford. For instance, consumers start their search for affordability on a lender’s website, where they enter down payment and trade-in details. Lenders then match consumers with vehicles they can afford through the dynamic application of prequalified offers and real-time dealer inventory.

After a quick identity verification process, consumers can start to filter the inventory based on their preferences. Consumers only see the cars they qualify for and are able to adjust their search accordingly. Within minutes, consumers can confirm their offer on a vehicle, start the application and enter the lead phase. This process empowers lenders to book more loans and improve their dealer relationships, while offering consumers a fast and easy way to explore their vehicle and loan options.

Fill out the form below to learn how TransUnion’s Auto Payment Shopper can help you deliver a Consumer First experience for auto loan origination.


[1] Mogensen, David, “The 5 Auto Shopping Moments Every Brand Must Own,” November 2015, www.thinkwithgoogle.com.

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