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Setting Yourself Apart as an Auto Lender

settingyourselfapartasalender

In a day and age where information is nearly immediate, lenders face the challenge of working to set themselves apart from their competition. Indirect lending is a particularly difficult arena to set yourself apart in, especially in a world where rates are aggressively low, and margins are slim. Instead of competing in a race to the bottom in APR, why not set yourself apart with innovative protections for your borrowers? Our newest product called Life Event Auto-loan Protection or LEAP from Golden Eagle Insurance allows auto lenders to offer a year of complimentary coverage to their borrowers with optional extra coverages.

Created with the same principals in mind as the Hyundai Assurance Program, Golden Eagle’s Life Event Auto-loan Protection or LEAP offers relief to auto buyers when the customer needs it most. Covering a spectrum of 7 different life events, LEAP acts as a “life event GAP” coverage while at the same time generating revenue and reducing chargebacks for the lender. The program was conceived with both the lender and the borrower in mind. For the lender, it offers a marketing outlet, generates revenue, and reduces chargebacks. These benefits also come with a fully customizable negative equity program based on customers’ needs while being backed by an A-rated insurance company. For borrowers, Life Event Auto-loan Protection offers unprecedented protection from life events such as suffering from an illness. It can be sold both as a stand-alone F&I product as well as a complementary product, which effectively sets the lender apart. With the opportunity to return their vehicle or free themselves from payments (for up to 3 months), borrowers can enjoy their vehicle with the peace of mind that their credit is protected when life falls outside of their control. For a lending institution that places a high value on customer experience, this is a priceless marketing tool for both current and new borrowers. 

LEAP covers seven different life events including: 

  • Involuntary unemployment

  • International employment transfer

  • Permanent change of station (military)

  • Self-employed personal bankruptcy

  • Loss of driver’s license due to illness or injury

  • Physical disability

  • Accidental death

After the creation of the Hyundai Assurance Plan, Hyundai’s market share in the US grew over 50% in 3 years. As an innovator and specialist, Golden Eagle Insurance focuses on problems that every lender faces in collateral protection and efficiency. While traditional debt cancellation products cover a handful of the above risks, Life Event Auto-loan Protection or LEAP offers a more robust coverage for borrowers at a similar cost. 

Lenders try to stand out from the competition by offering the lowest possible APR along with different rebates, however, with this program lenders have a new way to set themselves apart as auto lenders by decreasing chargebacks and helping to protect their borrowers from the unknown. Click here to learn more about Golden Eagle Insurance's LEAP Program. 

You may also be interested in reading about GAP Waivers which provide supplemental protection to a borrower’s primary insurance and is designed to help borrowers avoid financial loss in the event of total loss or unrecovered theft. Check out this article for more information: As car values struggle, VSI and Gap in demand.

Let's talk about LEAP!

   

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