Not only are many auto buyers selecting lenders online, they also expect excellent digital experiences for billing, payments and account management, according to a recent survey by market researcher Corporate Insights (CI).
Customer experience is top of mind for auto finance companies as 2024 shapes up into a buyer’s market after several years of sellers being in the driver’s seat. New retail car sales are expected to be flat at 12.7 million this year after a 12% jump in total 2023 new-vehicle sales, according to Cox Automotive. Retail used car sales will grow just 1%.
As auto lenders debate what it takes to deliver “killer CX” at the 2024 AFSA Vehicle Finance Conference and Expo, which kicks off in Las Vegas on January 29, the CI findings offer insights and a checklist of sorts for meeting consumer expectations and priorities.
Digital attraction
Interest rates remain the top consideration when auto buyers choose financing. But rates based on an applicant’s credit score don’t vary much from lender to lender.
Auto financing companies can break out from the pack by delivering digital interactions and tools from application to loan payoff. At the front end:
- 49% of consumers who plan to obtain an auto loan within the next 12 months intend to apply for the loan digitally through the lender’s website or mobile app.
- 40% of prospects rate a strong digital application process as very important or extremely important.
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Visit us at Kiosk K3 at the AFSA Vehicle Finance Conference and Expo
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Preference + payments
Once they’ve obtained financing, consumers want a laundry list of digital and mobile self-service tools and communications throughout the loan term. Top requirements, according to the CI survey, include:
- 79% expect electronic access to their loan/lease details.
- 72% want to view payment history online.
- 70% want electronic monthly statements.
- 65% want digital payment alerts.
These digital capabilities aren’t simply nice-to-have features. They are fundamental to making it fast, easy and convenient for consumers to keep making their monthly payments as vehicles become less affordable and higher prices for necessities stretch household budgets.
Improving CX
Auto financing firms can cater to growing preferences for digital billing, payment and account management options with cloud platforms for customer communications management and electronic bill presentment and payments.
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For more insights on leveraging technology to strengthen engagement, payments and loyalty,
download our white paper
Drive More Effective Auto Finance Communications and Payments.
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Omnichannel CCM software lets companies customize and deliver mail, email and texts. A single solution also makes it easier to manage all communication channels while taking advantage of synergies, such as sending payment reminders by text with links to statements or online payment portals.
EBPP systems give consumers the ability to manage and pay their accounts online. Providing the convenience and ease of use that’s so important to them, borrowers can:
- View statements and payment history
- Make one-time payments
- Automate recurring payments
- Set up payment plans
- Accept a variety of payment methods including debit, ACH and PayPal
Even as they boost CX, these technologies automate and digitally transform billing and payment operations for greater cost efficiency and effectiveness.
To discuss how we can help you add or expand digital communications and payments, contact us.
