{"id":115,"date":"2013-09-11T10:12:26","date_gmt":"2013-09-11T15:12:26","guid":{"rendered":"http:\/\/efgintelligence.com\/subprimepoint\/?p=115"},"modified":"2018-02-27T10:00:32","modified_gmt":"2018-02-27T16:00:32","slug":"delinquency-rates-eating-up-your-profit","status":"publish","type":"post","link":"https:\/\/efgintelligence.com\/lendingcurve\/delinquency-rates-eating-up-your-profit\/","title":{"rendered":"Why Should They Choose Your Loan?"},"content":{"rendered":"
\"Steve
Contributing Author:
Steve Roennau
Vice President
Compliance
EFG Companies<\/figcaption><\/figure>\n

The Challenge: Differentiation!<\/h3>\n

According to the latest State of the Automotive Finance Market Report, nonprime, subprime and deep-subprime new vehicle loans increased to 27.5 percent market share in Q2<\/strong>. This is a 25.4 percent year-over-year increase. In addition, nonprime, subprime and deep-subprime used vehicle loans experienced a 54.5 percent year-over-year increase in Q2<\/strong> market share.<\/p>\n

But with the good, comes the bad. As loan volume increases, lenders are presented with two challenges:\u00a0increased competition and higher delinquency rates.<\/b> With an influx of financial institutions putting together sub-prime financing packages and June auto loan delinquencies increasing by 5.5 percent, it\u2019s important to ask how you are <\/b>tackling these challenges presented by an expanding market.<\/p>\n

Consider this:<\/b><\/p>\n

Loans that offer complimentary consumer protection products can help you address the challenges of increased competition and delinquency control, while also providing additional streams of revenue<\/strong>.<\/p>\n

Said another way:<\/b><\/p>\n

The dealerships you work with have a variety of other subprime lenders from which to choose. What do you have to incentivize F&I managers to present your loan offering to their customers? Why should the customer choose your loan offering? You can\u2019t always offer the lowest rate, so what makes you different?<\/strong><\/p>\n

Financing options offering complimentary F&I products<\/a> with upgrade opportunities provide significant benefits to all parties involved.<\/p>\n