Open Lending Research Exposes Opportunity for Automobile Lenders
One-quarter of non-car owners see the car buying process as unclear or confusing, and 83% said they would return to a lender for other purposes if they had a positive automotive loan experience.
Non-car owners in a diverse set of age ranges, income brackets, and credit segments reported that buying a car feels out of reach amidst today’s financial climate, with many citing uncertainties and doubts around the lending process. But respondents also made it clear that the desire to own a car has not waned, as doing so would make a difference in their personal and professional lives. In their own words, respondents noted how a personal vehicle would help them generate extra income, meet family needs, and alleviate the stress of coordinating appointments and childcare alongside their work schedules.
- Cars remain unaffordable for many, with some disqualifying themselves from the lending process before even trying. Nearly half (48%) of non-car owners said they simply couldn’t afford a car, with 8% saying they don’t think they’d qualify for a car loan.
- Car inaccessibility is a roadblock to career growth: 55% of non-car owners said they have had to turn down lucrative job opportunities and promotions. Meanwhile, 62% said a car would improve their job performance either moderately or significantly, and 64% said not having a car impacts their overall earning potential.
- Simplicity and transparency in the lending process present a major opportunity for financial institutions. One-quarter of non-car owners see the car buying process as unclear or confusing. A good experience makes a big difference for this group: Among all non-car owners, 83% said they would return to a lender for other purposes if they had a positive automotive loan experience.
“At Open Lending, we know car ownership has the power to change people’s lives — but for many, buying a car doesn’t seem like an option. This new study further validates the longstanding value proposition that
With Open Lending’s Opportunity Calculator, financial institutions can get customized results on their potential to increase near- and non-prime loan originations with the Lenders Protection™ insured decisioning platform. Since its launch in 2003, Open Lending’s Lenders Protection™ program has been utilized by more than 400 financial institutions to originate and insure more than
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