It’s that time of year when many folks are looking forward to high school or college graduation, a new or first time job, or possibly a marriage. Exciting times for sure! These life-changing events are opportunities to establish or improve credit. And, purchasing a vehicle can be one of the intersecting activities during these life changing events. As a lender, you play an integral role, and have an opportunity to build a life-long relationship with new customers.
The first opportunity lenders have to work with new customers is often the teen years. An early savings account can transition into a secured credit card. Once the teen turns 18, they can apply for an unsecured card. But have you considered working with that early driver on a car loan as well? A first car purchase can do wonders for establishing credit. Even if the parents are listed as the primary on the loan, adding a teen can introduce them to the world of credit and begin to establish a credit score. Plus, the parents might appreciate the assist on educating their teen.
College graduation is another life milestone where credit and car loans can intersect. As the young adult embarks on their future, their transportation needs might change. Graduate school or a new job in another city demands a dependable vehicle. In addition to establishing credit with a car loan, this is a great opportunity to educate the young buyer on the value of vehicle service contracts (VSCs) or other protection plans. Be prepared to get down to basics on these options and clearly explain their benefits and value. Your young customer will be very price sensitive – but also concerned about the costs of unexpected repairs. Be sure your team is prepared to provide scenarios that match the young adult’s phase of life. Continue reading