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An auto manufacturer was introducing a new electric model with a different target audience than they had historically pursued. With the new model, the manufacturer needed to reposition its brand from a buyer-base of “relatively young consumers” to “green, environmentally-aware families.” The manufacturer and its captive financing arm needed to provide insight to dealers on interested consumers of the new model to ensure effective sales.
The captive auto lender worked with IXI to provide dealers with the likely financial capacity and demographic information for consumers interested in the new electric model.
“We chose Equifax’s IXI Services’ measures because they were the only source that could provide us information on both the likely financial capacity and demographics of interested consumers,” reported the head of credit risk and analytics department at the captive lender. “Other providers offered only demographics or survey-based information, but Equifax’s foundation of measured assets and credit data plus their ability to provide insight on household demographics, behaviors, and lifestyles was a real differentiator.”
By using IXI Services’ measures to evaluate interested consumers, the captive lender was able to convince dealers that the financial investment required to stock the electric vehicle on their sales lots and to promote the new vehicle was worthwhile.
The analysis revealed that interested consumers were likely to have:
- The appropriate financial capacity to purchase the new vehicle (likely to have higher Aggregated FICO® Scores and were less likely to be delinquent on auto loans based on aggregated credit measures); and
- Appropriate demographics that matched the characteristics of the target audience for the new vehicle (stable families, higher income, live in major metro areas). This was significantly different than the brand’s typical buyers.