Deal Pack Blog
Deal Pack Pro customers are ready for changes in the Subprime Auto Finance Industry that are on the horizon
The auto finance industry in general represents $55 billion in loans to consumers each year, according to Experian in 2012. The sub-prime market segment contributes about half of this financing and is growing each year. The profitability of these loans has provided a higher margin than non-subprime lending because of the 1 in 4 Americans that are under banked, therefore willing to pay higher interest and fees to obtain transportation. These facts have peaked the interest of large traditional lenders and non-standard lending companies.
This growing interest in the sub-prime lending market will bring new technologies that will provide new risk scoring models that will cut the sub-prime interest rate by as much as 50%. Additionally, the use of data sharing companies like FairLoan, who share payroll information with lenders, will also impact the ability for sub-prime lenders to offer lower interest rates.
To prepare for these trends current sub-prime market lenders need to increase staff efficiency to control operation costs though more efficient loan servicing and collection practices. Deal Pack Pro makes this process easy with services like automated ACH processing, online credit card payments and phone payment processing. Additionally, collections are more efficient though automated Text reminders, Voice Broadcasting collection calls and integrated starter-interrupt & GPS unit services. Finally, Deal Pack Pro offers a way to keep up with the pulse of the industry by providing Sub-Prime Analytics. For more information, please call our Support Staff at 800-526-5832.