ROCHESTER, Mich., Sept. 21, 2023 (GLOBE NEWSWIRE) — This new report details the wave of change that is underway among Gen Z and Millennial new vehicle buyers and many buyers of electric vehicles (both EVs and Hybrids).
Steve Bruyn CEO of Foresight Research noted “The automotive manufacturers are spending many billions of dollars building new electric vehicle factories. Additionally, “many brands are working towards being all electric within the next few years – some have already.” This is the biggest change since Ford Introduced the Model T in 1908. That put the United States on wheels – new automotive manufacturers are putting the country on electric wheels. Interesting, but what does this have to do with direct auto loans?
Three major changes are underway. First, Gen Z and Millennials have exploded online shopping and purchase of products and services. Next, when Tesla entered the automotive market, they changed the business model. Tesla has no dealers – only showrooms, and vehicles are ordered online. Delivery is to your home or office. Now, traditional automotive manufacturers are adopting ordering vehicles online with delivery to the dealer. This places the dealer late in the purchase process – too late to sell auto loans. This means banks and credit unions have a major opportunity.
When online automotive purchases happen, the percentage of financing through credit unions and banks increases from 17% to 42%. Where did that increase come from? Auto manufacturer financing programs dropped from 48% to 10%. This places a huge opportunity at the doorstep of banks and credit unions. Some big banks such as Bank of America and Chase have recognized this opportunity and are already in the EV auto loan business. Only a few local banks and credit unions are marketing EV direct auto loans. For banks and credit unions to find success, they need to understand both bank marketing and automotive marketing. That is why Foresight Research has published this report.
Foresight Research consulted the real expert – the customer. A survey of 4,100 new vehicle buyers produced significant market metrics and consumer insights. The keys to this opportunity are contained in this report.
- A complete marketing plan
- The direct auto loan market
- Messages: target buyer attitudes/expectations
- Reaching existing banking customer/members
- Reaching new banking customers/members
- Promoting competitive advantage
For more information, contact:
Steve Bruyn, CEO
248.608.1870 x 12
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