Mark Rappaport
President
Simplicity Division
EFG Companies
Q4 2017 has finally arrived. Are you on track to meet your auto loan volume projections?
Vehicle sales numbers are flowing in and so far it looks like the projections for a flat market have panned out, even with the upsurge in sales in flood-damaged areas. The Federal Reserve raised interest rates twice this year, and expects to raise them once again in December. Credit Union auto loan market share saw an 8.5 percent increase in Q2, according to Experian. Consumer spending grew marginally in Q3, by 1.5 percent, while consumer confidence decreased in September.
All signs point to more of the same in the coming months. Unit sales will still eke out at around the same volume as last year. The combination of raising interest rates and lackluster consumer confidence will create an atmosphere where consumers are more hesitant to make those big-ticket purchases.
In auto lending, this means increased competition for the available supply of consumers in the market for a vehicle. As you take the time in Q4 to prepare for 2018, it’s important to evaluate how to differentiate your institution with both dealers and consumers.
Evaluate your value proposition through the optics of building a relationship:
- Do you instill the value of providing superior service across your institution?
- Are your dealer partners well versed in how you fund and your funding requirements?
- How quickly does your institution respond to an application?