As more consumers show interest in buying an electric vehicle, it becomes ever more crucial for dealers to partner with brands like OfferLogix to understand the segment’s complicated financial aspects. On this episode of Inside Automotive, CBT News anchor Jim Fitzpatrick is pleased to welcome back the executive vice president and general manager of OfferLogix, Aaron Bickart, to tell us more about the software company’s offerings and how they can help dealers navigate the emerging EV market.
OfferLogix has observed credit tightening across lending institutions since the start of the year, notes Bickart. “We are seeing a pullback, believe it or not,” he explains. “We used to see…some banks have tier one to tier nine. We now are seeing [that] banks are only offering tier one to tier six…and they’re not going down to the 600 to 640 credit scores anymore.” Capital One is one of the more prominent brands showing increased caution, along with a majority of credit unions. Behind this shift in lending practices are growing rates of payment delinquency as consumers struggle to navigate the post-pandemic economy. “They’re all afraid that people are not going to make their payments.”
OfferLogix is partnering with Equifax to expand the services it offers to dealers, helping them better assist consumers and comprehend the EV market. “So one of the great things about having a great credit bureau like Equifax integrated into our APIs, you’re now able to take a 5-liner with that particular consumer and be able to figure out their FICO score in real-time, and be able to figure out which loan…fits their needs without a hard pull,” explains Bickart. By using OfferLogix to compare financing offers among its portfolio of lenders, dealers can find their customers the best interest rates and leases for their circumstances within mere moments.
Another service provided by OfferLogix matches consumers with the best product based on their financial information and dealership inventory data. “Within our API now we’re able to…roll the inventory and figure out exactly within milliseconds, from all the published rates, with the correct FICO score, what car or vehicle fits that particular consumer in milliseconds,” Brickart comments. This allows dealers to better direct their consumers to the right model, whether that be a gas-powered car or an EV.
These types of products are especially important for dealers interacting with customers on the fence about purchasing a battery-powered vehicle. For example, many have heard of the tax incentive program in the Biden Administration’s Inflation Reduction Act, but neither buyers nor loan providers have access to the information needed to understand how those credits apply. “[Lenders] don’t really understand all that themselves,” remarks Bickart. “The reality…is we have to start thinking of the consumer. The consumer is online trying to figure out: should I buy [an electric vehicle] or should I buy an ICE vehicle?” This is why OfferLogix can now calculate EV payments based on data such as the car’s incentive qualification status and buyer income, helping all parties make informed decisions during the purchase process.
Having a support system to help navigate the EV market is crucial for dealers. Making even minor mistakes in the financing stage can cause retailers to lose clients and sales. “That’s why you need a solution like OfferLogix…you have to be able to be perfect on these lease and finance capitalizations,” concludes Bickart. Visit OfferLogix to optimize your dealership’s financing operations today!