Business
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
About this update from Open Lending Corporation
[{"type":"text","content":"\nOne-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.\n\n AUSTIN, Texas--(BUSINESS WIRE)--\nOpen Lending Corporation (NASDAQ: LPRO) (“Open Lending” or “the Company”), an industry trailblazer in lending enablement and analytics solutions for financial institutions, has completed a survey on vehicle accessibility and consumer perception in the U.S. As car prices climb and more Americans return to in-person work environments, the survey’s findings shed light on the vehicle affordability crisis, as well as reveal how these barriers impact Americans’ quality of life and influence their beliefs about what financial products they can access. The findings also validate lenders’ opportunity to prove wrong the consumer perception across all credit segments that automobile loans aren’t an accessible option for them.\n\nNon-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.\n\nOpen Lending gathered responses from 1,347 full- and part-time employees in the U.S., including 597 car owners and 750 non-car owners. Of all respondents, 54% qualify as non-prime or near-prime borrowers and 25% qualify as prime borrowers. Key findings from the survey include:\n\n\nCars 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.\n\n\nCar 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...