Influencing Consumer Behaviour

With the possibility of immobilisation, making the monthly car loan payment now becomes as necessary as buying the fuel.

Whereas collection agencies usually have to track down the defaulter, initiate the phone calls and so on, the onus now changes and the borrower is contacting the collection agent. This saves significant costs.

In time, intelligent payment protection systems may become standard and the opportunity to ‘duck and dive’ to avoid payment will become a thing of the past. Why should lenders tolerate it when they don’t need to? What is evident is that it is very rare that the ultimate step of immobilisation occurs.

Drivers become conditioned to pay on time and their behaviour becomes automatic

Petrol retailers do not suffer delinquent payments from their customers. If the consumer wants the use of their vehicle, they need fuel and they need to pay for it, or no fuel, no car. Car finance can now have the same binary dynamic. If the consumer wants the use of their vehicle, they need to keep up the payments or their vehicle will cease to operate. No payment, no car.

New prompt payment technologies are unlocking hitherto untapped potential and changing the game. Consumer payment behaviour can now be influenced remotely and vehicles securely tracked. This is well documented in USA and Canada, but such technologies are only just surfacing in Europe.

To find out how payment protection technologies could work for you, download our White Paper on "The Need for Effective Prompt Payment Solutions in UK Subprime Vehicle Finance - A Perspective for Lenders"