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
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