{"id":869,"date":"2018-12-12T14:05:14","date_gmt":"2018-12-12T20:05:14","guid":{"rendered":"http:\/\/efgintelligence.com\/lendingcurve\/?p=869"},"modified":"2018-12-12T14:05:14","modified_gmt":"2018-12-12T20:05:14","slug":"up-your-response-time-for-the-win","status":"publish","type":"post","link":"https:\/\/efgintelligence.com\/lendingcurve\/up-your-response-time-for-the-win\/","title":{"rendered":"Up Your Response Time for the Win!"},"content":{"rendered":"
\"Mark
Contributing Author:
Mark Rappaport
President
Simplicity Division
EFG Companies<\/figcaption><\/figure>\n

Automotive OEMs rate vehicle performance by the time it takes to go from zero to 60 in seconds. This is a measure of energy conversion \u2013 fuel, spark, and movement. While this is a mechanical situation, a comparison can be made to business response times. While fuel is a potential auto loan customer, the spark is a call from a dealer partner, and movement is how quickly your lending team responds to lock down the deal. Have you measured your lending team\u2019s zero-to-60 response time?<\/strong> In this hyper-competitive lending climate, response time truly means the difference between a win \u2013 and a lost opportunity.<\/p>\n

A recent report, published by Auto Finance News\u2019<\/em> parent company Royal Media, analyzed 6,200 dealer evaluations to identify core traits which prompt dealers to choose one lender over another.<\/strong> One component of the report tracked callback time. \u00a0On average, credit analysts returned calls in 65 minutes.<\/strong> Prime loan applications generated a response time within 56 minutes<\/strong>. Subprime application response time lagged to within 75 minutes<\/strong>, according to the report. In comparison to credit unions, banks and finance companies, captives had the fastest call back time at 62 minutes<\/strong>.<\/p>\n

Is there a distinct difference in a lender\u2019s response time based on a customer\u2019s creditworthiness? Of course, there could be extenuating circumstances impacting these response times. Is the type of application outside the lender\u2019s target portfolio? Is the call coming from a preferred dealer who offers only prime applications to specific institutions? The data can be sliced numerous ways. However, given the large sample size, the report bears attention.<\/p>\n

Beyond the phone response time, dealers also voiced their opinions on \u201cpartner performance,\u201d including criteria such as accessibility, information-sharing, honesty, professionalism, sincerity, intuitiveness, and an upbeat attitude. It\u2019s no longer enough to have the best rates in town. Lenders must also be excellent partners in order to secure the best deals.<\/strong><\/p>\n

While these soft skills can be difficult to measure, they are vital to building successful relationships with dealer partners. Additionally, it\u2019s imperative that you address the question of whether you are providing tangible value to both dealers and consumers.<\/strong> One of the best ways to accomplish this is with complimentary consumer protection products<\/strong>, such as a limited powertrain warranty, vehicle service contracts<\/a>, GAP, tire and wheel protection, paintless dent protection, or vehicle return<\/a> protection.<\/p>\n

Structuring your loans with strategic F&I products makes it possible for dealers to increase their PRU through upsell opportunities<\/strong>, which in turn:<\/p>\n