The 2023 Non-Prime Automotive Financing Survey results showed the positive impact that non-prime auto financing can have on consumers. The data indicated the median three-year increase in FICO score for deep subprime customers was 78 points.

The findings also noted that 21.31% of consumers with auto financing moved from a FICO score of below 550 to a reading above 640.

It has been revealed in the latest edition of the New Reality Check: Paycheck-To-Paycheck research series, conducted by LendingClub Corp. in collaboration with PYMNTS, that a significant number of U.S. consumers continue to live paycheck to paycheck. The research found that 61% of U.S. consumers fell into this category in July, which is consistent with the previous month but 2 percentage points higher than July 2022. The number of individuals struggling to meet bill payments remains at 21%, representing a 2 percentage point increase from last year. Notably, more consumers across all income brackets reported living paycheck to paycheck in July compared to the previous year.

Experian’s State of the Automotive Finance Market Report revealed that average contract terms in the auto industry are continuing to decrease. This trend persists despite rising interest rates, as consumers increasingly opt for shorter-term contracts. The report highlights that this shift towards shorter terms is particularly prominent in new-vehicle financing. In the second quarter of 2023, the 1- to 48-month segment of new-vehicle financing increased to 14.58% from 9.53% in the same period last year.

The auto industry has always been at the forefront of adopting cutting-edge technology, and now, artificial intelligence (AI) is revolutionizing the sector even further. By integrating AI into auto sales and marketing, dealerships and manufacturers are discovering new ways to engage customers and drive growth.

One impactful way AI is changing the game is through the use of chatbots. In today’s world, where instant communication is highly valued, chatbots provide real-time support to potential buyers. While there may be concerns about relying solely on AI language models like ChatGPT, with the right algorithm and data, these conversational agents can answer inquiries, provide product information, and even guide customers through the purchasing process with just a click of a button.

Many dealerships are already reaping the benefits of AI. According to a survey by CDK Global, 76% of dealers believe that AI has had a positive impact on their business. The chatbots available today are no longer limited to simple Q&A; they offer interactive and personalized experiences, becoming an essential tool for auto dealers to engage with prospects 24/7.

There is evidence to support the effectiveness of chatbots. IBM’s Watson Assistant site mentions that personalized retail experiences make consumers 40% more likely to spend more than they originally planned. Personalization always yields positive results.