How Vehicle Lenders Can Stay Competitive

    Car finance lenders will need time to recover from the current market conditions whilst simultaneously developing strategies to meet future challenges.

    Pre-pandemic car market impact discussions were focused around electric vehicles and home charging points. These topics now tend to be an afterthought. Today, there are more immediate and specific challenges in the market impacting a lender’s portfolio such as:

    • Staying competitive in a high demand environment
    • Understanding the current and future consequences of supply shortages
    • Changes in consumer behaviour

    The effects of all these issues can leave anyone confused and thinking what next? We do know that consumer confidence has been continuously damaged by uncertainty. This combined with reduced mobility requirements which limit car needs for the medium term are problematic. There is no denying that demand will reduce significantly. 

    However, one of the biggest concerns is residual values and mis-calculated provisioning. Lenders will need to stay focused on trends while looking ahead to safeguard current and future profitability. Building a resilient business model that is based on facts will help retain customers and reduce risk. But insight into these trends can be a completely different challenge.

    The only way to stay ahead of the game is to truly understand market dynamics.

    Thankfully, lessons have been learned and organisations are demonstrating and delivering better overall value to consumers. A recent report by Fortunly shows that 77% of traditional financial institutions will redirect their focus toward customer centric innovations that support retention. Many companies are already using our unique whole market data to increase business whilst managing risk with laser sharp accuracy. 

    Using emerging technologies with AI, and machine learning is undoubtedly the answer. Easy and immediate access to vital information will ensure a competitive status. This is where data and their valuable insights carry tremendous weight. The ability to see how a vehicle will be valued at any date in time is as important as its current market value. 

    Cazoo Data Services helps car financing organisations see the full picture.

    Our award winning products are designed for the automotive industry. We offer whole market data with an unbiased data driven view allowing finance companies full visibility of the entire market, enabling competitive offers.

    Cazoo Data Services brings innovative AI and data science-driven modelling to an outdated sector that relied heavily on manual editorial processes and opinion to establish current and future vehicle values. Our financing products offer clear data and actionable insights that lenders love. 

    You can learn more on how we can support your car finance lending business by contacting a member of our team at sales@data.cazoo.co.uk. And make sure you take a look at our resources

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