Sarah Snell Cooke, Wednesday, June 30
The Fourth of July is quickly approaching, and many Americans are in the market for a new car!
However, the summer car-shopping season so far has been very different. Inventory for both new and used cars remains low, and this shortage had an impact on Memorial Day sales.
According to a report from Cox Automotive, the auto industry entered June with historically low inventories of unsold new vehicles. This is in large part due to the shortage of computer chips, which are key components of modern vehicles. As for used vehicles, while supply has slightly improved, Kelley Blue Book found that the reason for this is higher prices – based on lower availability of new vehicles – keeping potential buyers away. All of this is making it tricky for consumers to find the car they want at an affordable price, but your credit union can help!
Market Early, Market Often
Start your marketing campaigns well before the big day. Some of your members may be seeking preapproval for loans, so letting car buyers know what options you have available while they’re shopping for the right car or SUV will ensure potential borrowers remember your credit union when it’s time to buy. Ser Tech has access to volumes of current credit data to help your credit union target your offers toward members who are likely looking to buy.
Recapture Loans After the Holiday Weekend
Even after the holiday weekend is over, your credit union still has an opportunity to recapture those loans. Many people will be likely to get financing for their cars right at the dealership and later decide they probably didn’t receive the best deal. In this case, you can once again use targeted marketing to reach your members and potential members with an offer to refinance their auto loans.
Properly executed, data-driven targeted marketing can reach members while they are researching what’s available on their local dealership’s lot. Given current supply and demand, your credit union will still have some hurdles to jump, but understanding what your members need from an auto loan will keep you at the top of their minds as they shop.