Direct lenders are coming up with innovative strategies to provide customers with a better experience while maintaining a stronger working relationship with dealers. Lenders from well-established auto financing institutions participated in a panel discussion at the 18th Annual Auto Finance Summit to discuss those issues, as well as how to keep their customers from being “flipped.”
“The potential of the customer being flipped at the dealer is why we have to bring the dealer into the equation, this is only one component of the customer journey,” Peter Gasparro, head of strategy and business development at Chase Auto, said during the discussion. “We’ve got to bring the dealer into the conversation and try to understand their economics as well and the fact that they’re a critical part of this customer journey.”
Each panelist admitted the potential of their customer being flipped isn’t something the lender has total control over, but that there were best practices to prevent it.
Renee Horne, vice president of consumer lending experiences at USAA Bank emphasized the need to educate consumers about their financing options.
“When the dealer says, ‘would you like to lower your monthly payment,’? The consumer already knows what their options are based on what we’ve already provided, and they’re not enticed just because they saw a new price point at a longer term,” Horne said.
“We try to educate our members upfront, so they know what they’re getting into,” she added.
Bank of America’s Senior Vice President of Retail Auto Products and Strategy, Kal Valakuzhy, echoed this strategy to keep the customer from being “flipped.”
“Today’s customer expects a lot from the lender in terms of providing that education, providing help in choosing the right car to fit their lifestyle and financial situation,” Valakuzhy said. “If you provide the best solution, the chances of them getting flipped at the dealership decreases.”
Check out the exclusive interview below, which is part of a special video series sponsored by White Clarke Group.