Lenders can improve their electric vehicle underwriting programs by considering the vehicle itself in addition to traditional credit risk metrics.
Spring-free EVFirst, because we’re building our own, we’ve identified best practices for assessing risk beyond your credit score. Underwriting engine dedicated to EV. The fintech rents EVs from fleet management companies and charges monthly and per-mile fees, but when underwriting leases, it takes into consideration location, vehicle type, market characteristics and customer creditworthiness. In addition, consider the data that EV can provide. fleet management customers.
“Charging infrastructure, geography, seasonality, batteries. These are all things to pay attention to, especially from a financing perspective.” Teni TeulaCo-Founder and Chief Product Officer of Spring Free EV said: auto finance news. “Geography and seasonality are important. Weather patterns determine whether EVs can be rented.”
For example, EV rentals are rare in Arizona during the hot summer months, largely due to concerns about battery degradation and longevity, he said. Similarly, an EV parked in a garage during cold weather may perform better than an EV left in the elements.
“This is why our funding model is usage-based. It really depends on what the vehicle is used for,” Teurer said. “If the vehicle is not in use, the cost will be lower. If the utilization rate is high, there will be more utilization, especially in months with high rental car usage.”
According to the company’s website, the Spring Free EV leasing program allows unlimited miles and tons of driving.
Auto financiers also need to consider risk factors related to vehicle set-up, such as whether the vehicle comes with a key and whether the vehicle can be unlocked, locked or otherwise remotely controlled, Teurer said. rice field.
“Some of our underwriting work for fleet managers is completely digital. Send us a picture of yourself next to the vehicle,” she said. “It can also be remotely locked or unlocked after someone says, ‘I’m in this vehicle.'”
EVs will eventually offer data-driven features, such as being able to point consumers to the location of the nearest charging station, Teuler said.
“Telematics and location data can be used to pinpoint a vehicle’s location and deliver a customized, unique and personalized experience that scales much wider than traditional systems. [internal combustion engine] car,” she said.
ofBig Wheel Auto Finance Data 2023 Reportis the only summary table of the top 200 auto financiers by balance available today.
https://www.autofinancenews.net/allposts/auto-finance-excellence/technology/ev-underwriters-should-consider-geography-seasonality-battery/ EV insurers need to consider geography, seasonality and batteries