Your SlideShare is downloading. ×
0
Auto Lending Research Update Josh Frank and Delvin Davis July 10, 2009
Share of Dealership Profits
Prior Research Shows Race Influences Dealer Kickbacks
Industry Data on Add-on Penetration
Dealer Kickbacks in US and NC
The “Trust Tax” 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Average Rate Excluding Factory Incentives Average Rate Trusted dealer to...
Prevalence of Yo-Yo Scams (on average rates 5 percentage points higher) 4.5% 11.1% 12.0% 25.0% 0% 5% 10% 15% 20% 25% 30% T...
Who gets Add-ons (sometimes sold as mandatory or without customer knowledge)
Most consumers unaware of Arbitration Yes, 10.6% No-shopped or  negotiated to  eliminate, 4.9% Don't Know,  67.8% No-never...
Profit centers are not substitutes—instead there is “piling on”
Upcoming SlideShare
Loading in...5
×

Auto lending internal presentation

255

Published on

Published in: Technology, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
255
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Auto lending internal presentation"

  1. 1. Auto Lending Research Update Josh Frank and Delvin Davis July 10, 2009
  2. 2. Share of Dealership Profits
  3. 3. Prior Research Shows Race Influences Dealer Kickbacks
  4. 4. Industry Data on Add-on Penetration
  5. 5. Dealer Kickbacks in US and NC
  6. 6. The “Trust Tax” 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Average Rate Excluding Factory Incentives Average Rate Trusted dealer to give a good rate or dealer said they were giving the "best" rate Other borrowers Note: Difference between groups for both rate significant at 5% level.
  7. 7. Prevalence of Yo-Yo Scams (on average rates 5 percentage points higher) 4.5% 11.1% 12.0% 25.0% 0% 5% 10% 15% 20% 25% 30% Total Population Credit Score Fair or Poor Income < $40,000 Income $25,000 or less Note: The difference in frequency between lower income and lower credit score groups and the rest of the population was statistically significant
  8. 8. Who gets Add-ons (sometimes sold as mandatory or without customer knowledge)
  9. 9. Most consumers unaware of Arbitration Yes, 10.6% No-shopped or negotiated to eliminate, 4.9% Don't Know, 67.8% No-never in agreement, 16.7%
  10. 10. Profit centers are not substitutes—instead there is “piling on”
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×