Business
Open Lending Report Reveals Lender Opportunity to Create Loyalty and Empower Underserved Populations through Vehicle Access
Research shows lack of affordability (48%) and perception of an opaque lending process (40%) hinder ownership, and uncovers incentive for auto lenders to
About this update from Open Lending Corporation
[{"type":"text","content":"\nResearch shows lack of affordability (48%) and perception of an opaque lending process (40%) hinder ownership, and uncovers incentive for auto lenders to help near- and non-prime buyers fuel a better life\n\n AUSTIN, Texas--(BUSINESS WIRE)--\nOpen Lending Corporation (NASDAQ: LPRO) (“Open Lending” or “the Company”), an industry trailblazer in lending enablement and risk analytics solutions for financial institutions, has announced the full results of a survey on vehicle accessibility in the U.S. With responses from 1,347 full- and part-time employees, including 597 car owners and 750 non-car owners, the survey examines barriers to car ownership, misperceptions around the lending process, and opportunities for lenders to expand their customer base by reaching those who believe they can’t afford a car.\n\nBetween rising vehicle costs, the return to physical workplaces and a growing move away from urban hubs with public transportation, the question of vehicle access has come into sharp focus. Open Lending’s report shows how significantly vehicle access impacts job performance, earning potential and daily life. It also explores why lenders should look to dispel negative perceptions of the lending process and adopt solutions to engage non-vehicle owners — especially those in near- and non-prime credit segments.\n\nFive key themes emerged from the survey:\n\n\nAccess misconceptions. It comes as no shock that affordability issues stop people from purchasing cars. What’s more surprising is that vehicle affordability is a widely cited issue across income levels: 52% of Gen Zers and 50% of millennials say they can’t afford a car, regardless of annual earnings.\n\n\n\n\nCar-buying complexity. For many non-car owners, the process of getting approved for an auto loan lacks clarity, with just 11% saying they perceived the car-buying process as “extremely transparent.” By contrast, over one-third of non-owners (35%) said they viewed the process as either “mostly” or “extremely opaque.” At the same time, 83% said they would return to lenders for other purposes if they had a positive auto loan experience.\n\n\n\n\nThe professional toll. A majority of non-car owners said owning a car would improve their job performance, with 64% saying they felt their earning potential would increase with access to a vehicle. It’s more than a gut feeling: 55% o...