By 2020, 90% of all new cars will have networking ability and become “connected cars”, offering finance companies the chance to stay in contact with a customer throughout the car’s lifecycle.
That means funders, manufacturers and dealers all have a constant link with the consumer.
With sensors in the connected car information can be sent back to fleet managers alerting them when a vehicle is close to breaching its mileage limit under the existing contract, or to predict when a service booking will be required and pass on details of component performance.
For insurers, information based services make it possible to tailor products according to driver behavior, with options such as “pay when you drive” or “pay as you drive”. Dealers can use data from cars combined with location information to reconcile stock audits, checking when a car has left the lot.
But what technology companies see is the chance to create a mobile eco system which allows marketers to harvest, analyze and process data which can be monetarized.
These are all improvements to make existing processes more streamlined and cost efficient and the next stage of development could see the rise of the ‘Zero Dollar Car’.
To find out more about the “Zero Dollar Car” read the latest findings in the new White Clarke Group – 2016 Global Tech Report. The full report identifies six key commercial and technology trends which will affect auto finance in 2016.