Auto Manufacturer Captive Financing Case Study

This case study outlines the challenges faced by an auto manufacturer and its captive financing arm in understanding the target audience for a new electric vehicle model. The manufacturer aimed to shift its focus from traditional sporty models to a family-friendly electric vehicle aimed at environmentally-aware families. Dealers were uncertain about the new model and the profiles of potential customers, as the target audience differed significantly from the brand's typical buyers. To address this, the captive lender collaborated with Equifax to analyze consumer data, including financial behaviors and demographics. The analysis confirmed that interested consumers were likely to possess the financial capacity to purchase the vehicle, characterized by higher Aggregated FICO® Scores and stable family demographics. These insights enabled the captive lender to reassure dealers about the viability of the new model, facilitating their investment in stocking and promoting the vehicle. The findings also set the stage for future analyses to support dealer applications and marketing strategies.