Auto lenders are grappling with shrinking margins as they face a perfect storm of high interest rates, EV market uncertainty, and growing consumer debt. Many are now turning to analytics platforms like Earnix to help manage risk, improve pricing strategies, and stay competitive in a volatile market.
Tariffs and reduced post-pandemic inventory have driven vehicle prices higher, while 96-month loan terms are becoming more common. Experian reports that 70% of used vehicle loans now exceed 72 months. EV adoption adds further complexity due to unclear residual values.
Earnix’s platform enables lenders to analyse customer price sensitivity, track dealer behaviour, and simulate pricing outcomes in real-time. This agility allows lenders to adapt to market changes faster and test pricing strategies through Champion/Challenger models before full deployment.
Granular segmentation is also key. One lender, supported by Earnix, improved loan performance by adjusting price brackets to reflect tighter credit score bands. This shift led to better acceptance rates and margin improvements.
As market pressures grow, data-driven platforms are becoming essential for lenders looking to protect profitability and make smarter, faster decisions.
Read the full blog from Earnix here.
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