DYNAMIC COST TO OWN: AUTOMOTIVE LENDING EDITION

 

 

The Vincentric Dynamic Cost to Own sytem has proven itself to be beneficial to a number of companies including automotive OEMs, fleet operators, publishers, and dealers. Now this customizable system offers the capability to assist in automotive lending decisions in the U.S. and Canada.

  

Benefits of Vincentric Automotive Lending Support

  • Improved Insights and Decisions
  • Better Understanding of Customers' Total Ability to Pay
  • Lower Delinquencies 
  • Identify Cost-Appropriate Vehicles for Customers
  • Can be Customized to Integrate with your Current Analysis System

 

Automotive loan decisions often focus on consumer credit worthiness and incorporate typical loan to value ratios. However, one factor frequently overlooked is the cost to own and operate the vehicle after the sale. When these costs are not included in the loan decision process, the results can include higher rates of loan delinquencies and defaults. 

 

Through adjusting vehicle assumptions in the Dynamic Cost to Own system, automotive lenders will now be able to determine a vehicle's cost of ownership for the VIN specific vehicle being considered for purchase. The ownerhip costs measured include the following eight cost factors: depreciation, fees and taxes, finance, fuel, insurance, maintenance, opportunity cost, and repairs.  This additional insight can help reduce loan portfolio risk while at the same time growing the total loan portfolio. 

 

Contact us to learn more about increasing the performance of your loan portfolio.