Ford Credit, a company that operates in the captive financing space, is unveiling its first-ever consumer campaign as the car lending market undergoes rapid change. With more people shopping online for cars, brands must shift their strategies to adapt. Is this new campaign from Ford Credit a case of too little, too late?
Currently, about 40% of customers who buy Ford or Lincoln cars opt for Ford Credit. To increase this share, the company has launched a digital-only campaign with the lines: “The best Ford ever. Is the one you can call yours,” with paid spots on Instagram and Google search. However, the market is on the edge of massive growth, and Ford Credit may need to do more to keep up.
According to McKinsey, an ever-growing set of lenders that include banks, online retailers, and fintechs are moving to the auto loans sector because of its low delinquency rates. For example, Capital One has developed a tool that allows customers to shop around for cars and see if they pre-qualify for an auto loan without affecting their credit scores. AutoFi supplies digital retail systems to car dealers, banks, OEMs, and online marketplaces, and now has a cloud-based pricing platform called Real Payments, which allows customers to prequalify for financing and see prices and monthly pay-back amounts across various vehicles in a matter of seconds.
Ford Credit needs to make use of all the advances in technology and apply it to the process of getting a loan to own a car. They need to be where the customers are and provide them with the tools they need to make informed decisions. By leveraging technology such as Generative AI and exploring new trends like the metaverse, Ford Credit could create some online magic to stay ahead in the auto lending market.