The subprime vehicle loan market is dynamic. It has to adapt to multiple changes from a flush of off-lease vehicles hitting the market to changes in how people’s credit ratings are scored to reaching out to underbanked consumers. These factors affect your risk when lending. You need reliable technology to help you manage collateral so you can lend with confidence and sell more vehicles.
State of the Market
The auto loan market in general is feeling shaky. Automotive News noted an increase in loan fraud based on misrepresentation on applications. Point Predictive estimates losses from this deception could reach $6 billion. And TransUnion’s latest Industry Insights Report indicated that auto finance subprime originations had a decline.
However, there are definite positive points too. The volume of used cars in the market, according to Car and Driver, means a steady supply of inventory. And buyers are seeking out trucks and crossover utility vehicles so these vehicles can command a premium price.
Starting in July, credit scores will fall under new standards. Improved ratings under VantageScore (not FICO) by as much as 40 points may move some customers out of your market. However, it will also make others at the lower end within reach of your auto loans.
And the underbanked consumer could be a good opportunity as a recent FactorTrust report indicated that their average income is slightly higher than other applicants and they are gainfully employed typically for the long term (34 months). And as we reach the midpoint of the year, there is the annual optimism stemming from graduations and summer vacations.
Protect Assets. Lower Risk.
To help you keep up with the fluctuations in the subprime vehicle finance market, CalAmp has released its completely refreshed and enhanced LenderOutlook™ solution. As you can see in the photo above, your dashboard gives a snapshot of the status of your collateral. Below are some additional benefits.
• Simple design to access your portfolio information faster across multiple accounts and subaccounts. Customize to fit your needs. Drill down when you need to take action.
• Worried about false application information? Location validation is at your fingertips.
• Repossession made easier! Send a link to your recovery specialists that grants them access only to the vehicle that they are recovering. This puts the power in their hands to utilize the Locate Now feature.
• Quick reference to the health of your devices. You’ll know if you have devices that haven’t checked in recently.
• Stay up-to-date with your air time subscriptions. You’ll see how many devices are expiring each month for the next year.
• Is business booming? Purchase new devices in the store with a click of your mouse.
More Revenue. Better Service.
Pair LenderOutlook with two services to add additional revenue streams while strengthening your customer relationships. Keep them coming back to your lot.
• CrashBoxx® with instant crash alerts is a solution that notifies you when collateral is involved in a collision, allowing you to reach out to the customer and offer assistance in getting them back on the road (download the case study)
• SkySmart™ is a smartphone application that gives your customers the connected car experience while providing you with an additional revenue stream
For subprime lenders, your loan portfolio is your business. No matter how the market fluctuates, you need a reliable solution to provide payment assurance so you can sell more vehicles. The updated LenderOutlook is part of a full-stack solution with CalAmp’s industry-leading GPS devices. It protects your loan collateral, lowers your risk exposure and broadens your range of applicants to increase profits. If you have any questions about LenderOutlook, CrashBoxx with instant crash alerts or SkySmart, please call us at 949-600-5669 or email us.