Project Description

ACQUIRING AND RECAPTURING AUTO LOANS

Objective:

To build a stronger auto loan portfolio by refinancing existing loans from other lenders or acquiring new loans.

Analysis:

This $100 million institution had a weak indirect lending portfolio and strong indirect lending competition. With a limited potential for new indirect loans, they needed a strategy that would generate ongoing leads.

Action:

The institution’s MARQUIS OnTrax strategist identified the average life of the institution’s auto loans as 24 months. An auto runoff program was initiated, sending an offer for a new loan to anyone whose current loan was 20 to 24 months old. The program was executed quarterly.

Results:

After 9 months (three drops), the client had spent $2,387 and generated 137 new auto loans for total balances of $1,628,359. Overall, the campaign generated $21,171 in profit equating to a total ROI of 787%.

SOLUTIONS USED

MARQUIS MCIF | MARQUIS OnTrax | MARQUIS Creative