Data & Analytics

We recently collaborated with our integration partner, TrueCar, to analyze vehicle history data's impact on online listings. We analyzed millions of records over months of data and matched online listings to DMS sales to confirm closing rates. The short story – dealership Vehicle Detail Pages (VDPs) on TrueCar.com that offer consumers a Free Experian AutoCheck vehicle history report had a higher lead conversion rate. We expected the data to confirm that VDPs with a Free VHR would have a higher lead conversion rate. However, we uncovered additional insights that even surprised us! The most common search filter Consumers value transparency from a dealership and expect to be informed if a vehicle they are looking at has been in an accident. We learned from the study that when consumers used vehicle history data to filter their user's search results, the “accident” filter was the most common vehicle history data filter used. More than one-third of consumers using vehicle history data to filter search results use “accident” as a filter criterion. Why is this important? There are over 280 million vehicles in operation, and four out of ten of those vehicles have been in an accident. That means more than 100 million vehicles on the road have been in an accident—and 20% of vehicles on the road have had multiple events. Higher conversion rates (with a twist) Having been in the automotive data and analytics space for years, we were not surprised that the analysis continued to support our previous research that vehicle detail pages with a free vehicle history report have a higher lead conversation rate! Things started to get even more interesting, though: VDPs with a free AutoCheck VHR converted at a 27% higher rate. That holds true if the VDP page had a Free AutoCheck report available to the consumer, but if the consumer clicked on the free AutoCheck vehicle history report to view the details of the information, the lead conversion rate jumped to 318% (no, that’s not a typo). The lead conversion rate increased to 318% if the consumer viewed the AutoCheck vehicle history report!   VDP sale conversion rates And while we all appreciate a good lead conversion success story, we also wanted to analyze sale conversion rates. We learned that TrueCar VDPs that offered consumers a Free AutoCheck vehicle history report on behalf of a dealership had a higher sales conversion rate. Not only is the rate higher—the sale conversion rate is 50% higher for VDPs that offer a free VHR. Here are a few more interesting pieces of information we uncovered with this latest analysis: VDP’S without an accident close at about 200% higher than those with an accident Vehicles without frame damage had a 250% greater close rate Vehicles without a salvage indicator had a 634% greater close rate Consumers want to make informed decisions when purchasing vehicles, and automotive dealerships can help by providing them with a free AutoCheck Vehicle History Report on every Vehicle Detail Page. Help improve lead conversation rates, sale conversation rates, and build customer trust by offering vehicle history transparency. For dealers with an AutoCheck subscription, you can activate your vehicle listings for free on TrueCar by calling AutoCheck Customer Service at 1 888 409 2204. Dealers interested in learning more about the benefits of becoming an AutoCheck subscriber, contact us today!

The automotive marketing world has benefited from cookie-based information to help identify and reach consumers in the market for a vehicle. Now that cookies will be going away, marketers need to find alternate ways to find in-market consumers. Let’s explore. What are cookies? Created to personalize internet browsing experiences, cookies are small pieces of code placed within a user’s browser whenever someone visits a specific website. Cookies typically track the website’s name and a generated unique user ID. They can capture page clicks, viewed web pages, clicks within a website, and Personally Identifiable Information (PII) such as an address, name, and device IDs. How are cookies used in marketing? Cookie data helps automotive marketers enhance the user experience by better understanding consumer behaviors to deliver targeted, relevant messaging that moves the consumer through the buying funnel. For example, think about when a consumer researches RVs/travel trailers to see if their current vehicle can handle towing a camper or when they search for the best way to hook up a camper. A dealer could use this cookie data to send advertisements for trucks with a towing package that could potentially tow a trailer. Cookie support is ending, so now what? In 2020, Google announced it would end support for cookies in the Chrome browser by early 2022. This timeline was established to allow Google to address the needs of users, publishers, and advertisers to respond and look for workarounds. The revised timeline puts Google’s cookie retirement in 2023. Marketers have been using cookie data in advertising for years, so what are the options when cookie data goes away? Cookie alternatives Automotive marketers can tackle a cookie-less world by using other sources of consumer data insights. For instance, a third-party data aggregator, like Experian, has access to numerous sources, platforms, and websites. Beyond that, we have access to a vast range of specific consumer data insights, including vehicle ownership, registrations, vehicle history data, and lending data. We take all that information and help marketers segment audiences and predict what consumers will do next. (That’s more than the average cookie!) Sample audience segment information: Consumers in market Loan status In positive equity Driving a specific year/make/model 1000+ lifestyle events such as new baby, marriage, new home Geography, demographics, psychographics To take it to the next level, we can use predictive analytics to go beyond what cookie data could provide by predicting who is ready to purchase a vehicle. In our example above, a marketer used cookie data to find buyers who had shown interest in a tow package, but that’s where it ended. By combining audience segmentation with a predictive model, marketers can target and identify consumers in-market and most likely ready to purchase a vehicle with a tow package. In this way, the data-driven insights from a third-party data provider specializing in automotive insights can replace the cookie-driven approach and take it a significant step beyond. Other ways to reach consumers in a cookie-less world Automotive marketers can also use data-driven insights to further explore specific channels where consumers spend their time. Social media, for example, is an effective channel to reach consumers. Marketers can go beyond standard Facebook audiences by utilizing Experian audience segmentation and predictive analytics to highly target consumers on Facebook. So, if you can predict when a consumer will be in-market, and you know in what channel they spend most of their time, you can target them with specific messages about your dealership and your vehicles. With cookies becoming a tool of the past, knowing who is likely to be in-market, what message resonates with them, and the best channel to use allows marketers to move beyond cookie-based strategies effectively. So, let the cookie crumble! For a deeper dive into cookies, watch this recorded webinar from the 2021 Digital Marketing Strategies conference: As the Cookies Crumble, How Will Automotive Digital Marketing Respond? Presented by Experian's Amy Hughes, Sr. Director of Dealer Intelligence. Learn more about Experian’s Automotive Intelligence Engine and how audience segmentation and predictive analytics can drive more in-market buyers to your dealership.

There are many ways to promote a more equitable society - including financial inclusion or reducing the racial wealth gap for underserved communities.

Lenders are increasingly under pressure to improve access to the financial system and help close the wealth gap in America. Read more!

At the end of the Public Health Emergency, states will need a system to easily and confidently review their current Medicaid rolls to confirm eligibility.

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The payments landscape is rapidly evolving, and as businesses set their strategic agendas for the new year, it’s important to analyze and adapt to changing consumer payment behaviors. Here are a few payment trends to look out for: Consumer sentiment remains low while inflation hits 39-year high According to the University of Michigan’s latest consumer sentiment survey, sentiment rose to 70.4 in December 2021 from 67.4 in November. While this was a slight improvement from the 10-year low logged in November, the figure was roughly in line with the average reading of the past four months (70.6). Additionally, consumer prices increased 6.8% over the past year, the highest in nearly 40 years. When asked whether inflation or unemployment was the more serious problem facing the nation, 76% of survey respondents selected inflation while 21% selected unemployment. Rising prices and the uncertainty surrounding the Delta and Omicron variants may cause consumers to remain pessimistic about their personal financial progress and delay large purchases. Payment preferences vary by age and purchase type According to a recent Mintel report, credit cards are the most preferred method of payment among U.S. adults. Despite the overall preference for credit cards, attitudes toward this payment option differ based on consumer age. Credit card preference skews strongly toward older consumers, with 46% of Baby Boomers opting to use credit cards for most of their purchases and 72% of the World War II generation preferring credit cards to any other payment type. Conversely, younger generations are turning to cash, debit cards and digital payment alternatives for most of their purchases. This difference can be explained by younger consumers’ fear of debt and lack of credit education. While older consumers may feel more comfortable and capable of paying off their credit card bill each month, most Gen Z consumers are not creditworthy enough to own a credit card or are afraid of falling behind on their monthly payments. Though Gen Z’s low ownership rate may seem concerning to credit card issuers, there’s an enormous opportunity for them to reach and engage this younger cohort. By educating younger consumers about their products and the importance of building credit, credit card issuers can build lasting customer relationships and maintain their standing in the payments hierarchy. Payment preferences also vary by purchase type. Consumers mostly use debit cards and credit cards for in-store purchases, while direct payments from bank accounts are used to pay off recurring bills. Despite these preferences for card and online payments, cash remains a popular secondary payment method across age demographics. Older consumers use cash to make small, personal transactions, while younger consumers are more likely to use cash or debit cards for large purchases. Digital payment popularity continues to soar From 2019 to 2020, peer-to-peer payment (P2P) services, like Venmo, Zelle and Cash App, saw usage increases of 2 to 3 percentage points. In 2021, that year-over-year increase jumped to 8, 9 and 7 percentage points respectively. This jump indicates that while consumers may have been reluctant to adjust their payment behaviors at the beginning of the pandemic, ongoing social distancing measures forced them to adapt to a new reality, leading to the widespread adoption of digital payment methods. As consumers continue to embrace P2P services, traditional payment powerhouses must pivot their strategies to capitalize on this trend and remain competitive in today’s payments landscape. To keep up with the latest consumer and economic trends, register for our upcoming Monthly Credit and Economic Trends webinar.

According to Experian’s State of Automotive Finance Market: Q3 2021 report, leasing comprised 24.03% of new vehicle financing in Q3 2021.

As we head into 2022 there continues to be heightened interest in auto auctions. Experian has observed a little cooling in auction activity in some parts of the western U.S., but the Central, Eastern and Southern geographies continue to see high unit activity, as depicted in the chart below.  Let's take a look at how vehicle history data can help consignors make more informed decisions before auction. (Click here to access these insights directly). Review vehicle history data before auction assignment During this current climate, you can make the most of every auction (whether physical or digital) by reviewing vehicle history data before assignment. Have you ever brought inventory to a physical auction only to realize the vehicle had issues you didn’t know about?  This can catch consignors off-guard and prove costly. So, how can you take advantage of vehicle history reports to help make better purchasing decisions? Vehicles with damage aren’t a lost cause, but rather consignors need to be strategic about where they send damaged vehicles to auctions to ensure the sale and maximize the sales price. A little extra research can help uncover hidden issues and vehicle damage. Vehicle history reports reviewed prior to auction assignment can assist consignors in uncovering vehicle damage and determine if the vehicles are appropriately priced to move before locking in their auction location. A quick review of the vehicle’s history report for major state title brands can reveal areas of concern and will also show other major problems, such as accidents, damage and total insurance loss. If damage or a major concern is uncovered, consignors can proactively evaluate the auction assignment.  For example, the vehicle might have a better chance at selling in a hotter market like the Central, Southern, or Eastern U.S. than in a Midwest market. The key is to always know before you go by taking advantage of region and channel data to help ensure the most profitable sale. “Know before you go and tell before you sell,” says Joe Miller, VP of Client Experience at AutoIMS, the popular inventory management platform serving auctions and commercial consignors. “We continue to hear how vehicle history is influencing decisions not only about which auction to send the car to, but what repairs to perform, how best to floor price the car, and how to represent it in the lane. A new era of data-rich transparency is upon us in auto remarketing, and those tapping into the VHR will ultimately save time and make more money as they improve their reputation in the lanes.” By leveraging the Experian AutoCheck Vehicle History Report, consignors have quick and easy access to information that can help them make more informed, profitable decisions. To become an AutoCheck Vehicle History Report subscriber, sign up today.

In Q3 2021, the average new vehicle loan amount increased 8.5% year-over-year, while the average used vehicle loan jumped more than 20% year-over year.

Despite used vehicle prices rising, loan-to-value (LTVs) ratios are dropping. Ultimately, lower LTVs are a positive trend for consumers because it puts them into positive equity on their vehicle faster.

The automotive finance market is beginning to level out to pre-pandemic trends in Q2 2021.

Experian discussed the benefits of FCRA data and ways this data can ease credit access for “invisible” consumers in a recent webinar hosted by AFSA.

Ascend Intelligence Services wins fintech breakthrough awards & empowers financial firms with Experian's managed analytics solutions and services.

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