Capital One has launched a digital tool that helps dealers better understand consumers’ financial preferences upfront, creating a more transparent car buying experience.
With the Navigator Platform, consumers can find a payment that works for them by specifying a down payment, trade-in and term length, Capital One said in a Friday (Jan. 27) press release.
The tool also enables participating car dealers to better work with shoppers by seeing what they can afford and providing a financing experience that is more transparent and accurate, whether the consumer is shopping in-person or online, according to the release.
“Navigator Platform is all about providing dealers with the comprehensive tools they need to meet car buyer expectations by enabling consumers to engage in a similar process at home or in the dealership — and the financing information is consistent,” Capital One President of Financial Services Sanjiv Yajnik said in the release. “Navigator Platform sets up a transparent experience that both buyers and dealers value at the dealership.”
The launch of this digital financing tool comes at a time when Wall Street and banks are growing concerned about car buyers’ debt load.
The size of outstanding auto loans — which rose from $1.44 trillion in the third quarter of 2021 to $1.52 trillion in the same quarter in 2022, according to the Federal Reserve Bank of New York — puts both borrowers and lenders at risk.
PYMNTS research has found that most consumers manage their loan accounts online. Among the 61% of consumers who have loan accounts with outstanding balances, 72% manage those accounts online, according to “Account Opening and Loan Servicing in the Digital Environment,” a PYMNTS and Finicity collaboration.
Consumers can access the new Navigator Platform through Capital One’s Auto Navigator or through a participating dealer’s website, the release stated.
With Capital One’s technology and lender partnerships, the firm can get prequalifications for most consumers so that they can use real rates and payments to understand their options and build an offer, according to the release.
“Now more than ever, car buyers look to dealers to be trusted advisers to help them navigate the dynamic market,” Yajnik said in the release. “Dealers who make the jump to offer increased transparency throughout the buying process, such as through the use of straightforward digital tools, will earn the trust of car buyers and improve the overall experience.”