This time of year is about being thankful. At Prestige, we can’t help but be grateful for the opportunity we have to help thousands of individuals get into the car they want and change their lives for the better. Then we started to wonder, do we actually help people get back on their feet? Do we succeed in our goal of helping consumers pursue independence and better financing solutions in the future, or is it all just a feel good message that falls flat on its face in the end?
We decided to get to the bottom of it. Let’s take a look at what we found (cross your fingers that it’s good!):
Let’s see what our industry as a whole does for our customers. Equifax conducted a study to see what getting an auto loan does for consumers in the deep-subprime credit classification and their credit scores. They found that credit scores of consumers who received a subprime auto loan increased over a three-year period with a median improvement of 52 points. Those who did not take out an auto loan during this same time period only saw an increase of 32 points in their credit score. That’s a 20 point difference for the groups surveyed, a 62.5% improvement over the group that didn’t take out an auto loan! Not bad, especially for not being in the business of credit repair! But what does this mean for subprime consumers? Does getting a new car actually make any kind of difference beyond a few credit points?
We’re glad we asked!
Equifax’s research further indicated that industry-wide, customers who received a subprime auto loan were FOUR TIMES more likely to improve their credit score above 640 compared to consumers who did not take out an auto loan. Equifax states, “This distinction is critical as it affords them much greater access to credit and therefore an improved economic situation.” Wow! It looks like if you find yourself in this position, getting an auto loan (preferably with Prestige – wink, wink) can be an extremely beneficial contributor to your financial goals in the future.
All of this information indeed shows that we’re practicing what we preach, but the real kudos goes to the outstanding customers and the commitment they make to improving their situations, a commitment evidenced by the fact that 88% of our customers who paid off their account last year had their loan reported as being paid perfectly the entire time they were with us. You read that right, PERFECTLY.
This strong pursuit of improvement placed hand in hand with our goals of getting customers back on their feet results in something amazing. It’s an effort we don’t take lightly and an opportunity we truly cherish. As a result, we feel extremely thankful for the chance we have to work with such great people and be in the position follow our mission, “To Enrich Lives.”
So sincerely from all of us here at Prestige to kick off this holiday season, we’d whole-heartedly like to say, “Thank you!”
Prestige Financial is a subprime auto finance provider that has been in business since 1994. Prestige Financial is NOT a credit repair agency.
Equifax Study can be found here: https://www.equifax.com/assets/corp/subprime_auto_economic_commentary.pdf