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Auto Lenders: Gain Insight on Consumers for New Electric Model with Financial Capacity Measures

By Using IXI Services’ Measures to Evaluate Interested Consumers, Captive Lender was Able to Convince Dealers to Stock the New Model and Confirm Consumers’ Likely Financial Capacity and Demographics
Going forward, the captive lender and manufacturer can leverage their understanding of interested consumers’ likely financial capacity and demographics to inform onsite dealer applications, targeted prospecting campaigns, and online advertising.
Learn more about our solutions for auto.
Challenge

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.

Solution

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.”

Results

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.

IXI’s products were neither developed for the purposes of, nor intended to be used for, the extension of credit to any individual, nor should they be used for purposes of determining an individual’s creditworthiness or for any other purpose contemplated under the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.
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