Last year, a record 107 million Americans had auto loans. That’s nearly half the entire adult population. So, why don’t you have more auto loans?
One reason is the way most consumers buy cars. Many people make the mistake of “payment shopping” – they choose financing based on the monthly payment without considering the length of the term, interest rates, fees, etc. They drive off the lot with financing from the dealership or another lender that looks good initially but ends up costing a lot more down the line.
Your target market may have ended up financing an auto loan elsewhere, but that doesn’t mean those loan dollars are gone for good. This is where a good auto loan recapture program comes in and saves the day – and gets those loan dollars on your books.
So, what makes an auto loan recapture program work?
• Dollars talk! It’s clear that most consumers are looking at monthly payments over interest rates and terms. While they may understand that a lower APR is better, when it comes down to it, their eyes are drawn to the amount coming out of their pockets each month. Highlight the low monthly payments you can offer for better response.
• Prescreened data. It’s even better if you can show consumers exactly how much their new monthly payment would be. Use a prescreened list and variable data to show the difference in monthly payments and/or the difference in total amount paid over the term of the loan.
• Make the switch easy. The savings will draw them in, but if it seems too complicated to apply or accept a pre-approved offer, some consumers just won’t do it. Make it easy for consumers to apply with a landing page featuring a mini-application or provide an application with your mailed piece.
A solid auto recapture program provides real results – United Community Credit Union in Galena Park, Texas, had image.works create a program for them that yielded:
• 210 refinanced auto loans
• $4,250,190 in total auto loans refinanced
• $546,852.60 receivable interest income generated
• 24:1 ROI
Get these results – or better – and recapture those auto loans with image.works.