Kinder, Gentler Lenders
Every cloud has a silver lining. That’s about as cliche as cliches get. It does make me wonder why whomever coined the saying chose silver and not gold. Isn’t silver the medal of second place? Does that mean the originator intended to mean that dark clouds never have first-place-worthy linings? I digress.
Consumers are desperately looking for silver linings, as once again the ups and downs of the stock market take center stage during evening newscasts, ahead of updates from today’s trial of the century, forecasting more hotter-than-ever weather, and footage of toddlers with ice cream faces from local fairs.
It is that cliche that led me to create yet another in the seemingly endless parade of ideas about how auto lenders can improve their brands, generate good PR, and maybe lend a few more dollars.
Talk of double-dip recessions and recitations from talking heads about the trillions of dollars being taken out of the stock market daily are bound to keep consumers glued to their couches rather than flocking into car dealerships to replace their aging, gas-guzzling SUVs with sleek new hybrid sedans.
As a lure to unglue those wary consumers, while also generating some good PR, why don’t lenders roll out some form of “recession reduction,” where if the economy falls into a recession, or the stock market drops below a certain threshold, car payments will be reduced by 10%? Wouldn’t that be a silver lining to the dark cloud of a four-digit Dow Jones Industrial Average?
Of course, the 10% reduction is just an off-the-top-of-my-head promotion. The idea could be expanded to removing the interest from a monthly payment, or forbearing the loan for a month or two and adding it on to the end of the term when the economy is (theoretically) healthier. Lenders could even hedge against the expected loss in revenue by shorting the Dow Jones Industrial Average.
(Using his movie announcer voice) At a time when the economy stands in peril and Americans are petrified of financial disaster, what lender will stand up and proudly claim to be the most sensitive to the needs of its customers? (end movie announcer voice)
