In-Car Finance Opportunities Are Waiting

T-Mobile recently made waves in the world of wireless communications when it did away with a requirement for customers to sign a two-year contract when getting a price break on a new phone or changing their monthly billing plan. 

The move is seen as an attempt to win business by giving consumers the opportunity to pay less money. T-Mobile’s chief executive said when making the announcement that customers could save as much as $1,000 over the two-year span by signing up for the carrier’s no-contract plans. 

Now, it appears as though the wireless carrier is playing the price card in its attempts to boost its presence in the automotive market, too. T-Mobile has announced a new pricing plan for Audi car owners who sign up for a data plan for the manufacturer’s infotainment system, called Audi Connect.

By pre-paying for service, customers can save as much as $15 per month, instead of paying $30 per month on a month-to-month basis under the previous plan. 

More manufacturers are integrating infotainment systems and signing partnerships with data providers.

Audi’s Connect system already integrates with Google Maps and Google Earth as well as third-party apps that deliver news and weather information to drivers and passengers in Audi vehicles.

It’s a trend that lenders absolutely must be evaluating and looking to tap into. There are opportunities for cross-selling other products, such as allowing customers to make car payments while in their vehicles, or using features designed to keep them as customers longer (“Your car’s ‘Check Engine’ light is on. Is it time to buy a new car? Click here or say yes to apply for financing now.”)

Data integration is to carmakers what DVD players were to them a decade ago — an idea that started off as an extravagant perk that has become a standard feature. Lenders need to proactively seek out opportunities in this area to capitalize on the trend.