May 14, 2025

Tariffs, Terms and the Evolving Auto Finance Landscape

Tariffs, Terms and the Evolving Auto Finance Landscape
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As tariffs and inflation drive up vehicle prices, both lenders and consumers are feeling the pressure to adapt. In this episode, host Lynn Sautter Beal speaks with Melinda Zabritski, Head of Automotive Financial Insights at Experian, and Mark Pregmon, VP of Consumer Lending at USAA, to explore how market shifts, financial pressures and evolving consumer demands are reshaping the auto financing landscape.

They discuss the impact of pricier vehicles on affordability, the surge in flexible loan terms to manage monthly costs and the growing role of refinancing—even without dramatically lower rates.

Join us as we discuss:

  • How tariffs and inflation are influencing vehicle affordability and driving demand for flexible financing options
  • Why lenders are extending loan terms to help borrowers manage payments in a tightening market
  • The rise of auto refinancing—not just to secure better rates, but to re-amortize loans for lower monthly bills
  • Strategies for risk management and customer care as consumers seek more personalized, adaptable finance solutions
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Hi everybody.

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This is Lynd Soderbil of Upstart, and welcome to another

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episode of Leaders in Lending. I'm joined today by Melinda Zabritski,

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who is the head of Automotive Financial Insights and Experience,

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and Mark Pregman, who is a VP of Consumer Lending

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for USAA. Thank you both for joining us today. Happy

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to have you here. I think Melinda and Mark, i'd

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love for you to just, you know, give our listeners

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a little bit of a brief intro about your backgrounds

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and kind of how you really became leaders in the

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lending sector.

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Great, So, Melinda Zabritski, I've been with Experience going on.

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I actually just completed my twenty first year here and

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I've kind of started more in the product development area,

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really focused on lender oriented you know, data products, mostly

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around industry trends and what we're seeing happening in the industry.

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And I started putting together a regular quarterly presentation on

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state of the automotive finance market and have wrapped up

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my up in the second quarterly presentation getting ready to

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start number seventy three. So really just focusing on what

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are we seeing in auto finance.

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And I'm Mark pregnant, so a general manager of consumer

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lending at USA thirty plus years in the industry, so banking.

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My whole career right out of college started with SunTrust,

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which is true as spending today. I was a buyer

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on the desk by an automobile paper, calling on car

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dealers selling our products and services. But I also have

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experience in other asset classes like home equity, credit card,

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small business lending. So my whole career basically has been

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what I would call consumer lending, not really commercial lending,

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although I have some experience in that. My ninety percent

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of experience have been lending to consumers. And so I

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think twenty four years at Tourists, in nine years at

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P and C Bank, and now here at USA for

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almost five.

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Wow, so great.

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I think between the two of you, you've certainly seen

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a pretty significant changes in the auto end history with

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the rise of electric vehicles and and many other shifts

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between domestic and international production. And who's kind of winning

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the race at any given point. I think the interesting

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thing and kind of everyone's hot topic right now are

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the tariffs on many products, but particularly on auto imports

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and auto parts. And so I've actually even seen some

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marketing emails from dealers that are near me that I've

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bought cars shop in the past, that are.

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Saying, hey, it's on our lot, come by it. These

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things are terror free for now.

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So you know, certainly very disruptive to a lot of

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industries and a lot of change to navigate to right now.

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So how do you see this playing out in the

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near term with manufacturers and dealers, and then how do

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you see that kind of impacting the consumers and the

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affordability of those of those cars.

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So I will start Melinda and I did a presentation

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together Consumer Banker Association with CBA Live. It's a three

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week weeks ago. Now Melynd don't lose the track of

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time and terrors for the hot topic because they hadn't

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started yet. I would say that anybody that was the

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key word, key phrase we heard, any big intelligence, they

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know what's going on, what's going to happen. They're lying

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to you. They have no idea althothough I will tell

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you since Lynda and I spoke to it at the

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CBA Live, I have a little bit better handle on

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it today because things have transpired, things have happened, and

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I see that automobile industry, and the manufacturers are adapting.

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They're trying to figure this out as well. And we're

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seeing like Audi's leaving their cars at the port. They're

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still delivered, but they're not taking delivery of them. We're

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seeing the car dealers they're trying to push like you

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got the email that they're trying to push sales. Now,

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we're seeing an increase in our application volume. And I

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was actually listening to sales calls at USA. They require

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us to call y Cording, and what we do is

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we listen into our service reps, whether they manufactor make

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a loan, sell alone, or collect alone. We listen to

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the whole life cycle to try to improve that experience

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for our members. And I listened to some sales calls

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and they were I'm trying to get in before the terriffs.

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I heard that come through while they were taking the application.

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So I think we're probably pulling some demand forward. How

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it all levels out, I don't know, but I also think,

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you know, the rhetoric on the terrorist is kind of

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toned down a little bit with some pauses announced here lately,

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so who knows what's going to happen. But I don't

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think this gonna be as negative it was when Milan

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and I were talking about this three weeks ago. So

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on manufacturers and the dealers, well, they're adaptive. I mean

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they even as adapt it's going to be a car dealers, Linda.

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I don't know your take, but but we're seeing increased demand. Yeah.

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I actually just wrapped up last week to additional conferences,

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and definitely this is the topic that everyone's talking about.

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I saw some presentations from some economists that were trying

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to estimate what they expect the stars to be, and

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they were definitely reduced from what I had seen previously.

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You know, anticipation of potentially reduced manufactur sharing profit, so

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you know that that's something that I think that that

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is still kind of up in the air, you know,

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I think everyone pretty much agrees though that you know,

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there will be an impact to affordability around you know,

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loan amounts, and you know they're already extremely high, so

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we can anticipate that going higher. And then of course

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there's the anticipation of as prices increase on new and

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very likely hit record peaks, shifting more consumers into used vehicles,

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which are already at a little bit more of a

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tight supply and that causing even perhaps more of a

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ramp up demand for used and potentially increasing those used

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values as well.

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Sure, and that's actually a topic that kind of hits

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near and dear to my heart. I have I have

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three kids, and two of them are drivers and out

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of the house, and one is about to be a

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driver within the next year, so I will be in

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the market for a car, and my middle one was

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kind of in need of a car right about that

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the last spike in the used vehicle market during COVID,

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So probably going to get hit twice twice by similar

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economic factors, you know, with the vehicle prices you know,

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still elevated even on new cars and use cars, and

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potentially increasing on us KUIs with lower supply, do you

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see lenders of adapting loan term structures to address that affordability?

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Yeah, I would say from a lender perspective, you're seeing

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that across the market. It hasn't changed drastically because I

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still think the consumers they may see that that seventy

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two month or the eighty four months out there, but

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they're looking at the rate they have to pay. It

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really just comes down to a payment. I think that's

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they're trying to back into a payment. But we are

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seeing I think that Melinda you shaid, I think it

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was like twenty percent of the Marcus three twenty plus

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percent is now seventy three months are greater. But the

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interesting thing, the average amount average term on the books

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for a lender like ourselves is sixty eight months. So

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it still has it changed that much. May have got up,

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like from sixty six to sixty eight, but it hasn't

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changed that much. So I think that there are we're

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we're I think that we're seeing that focus out there,

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but a lot of the consumers just aren't taking those

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longer terms.

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So yeah, and that and the majority of financing it

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really is seventy two months and above, you know, with

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mostly right at seventy two and yeah, those averages, you know,

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right around the sixty eight months. I think some of

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the things that we're seeing on this is if you

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think about it, you know, term really is the only

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thing left to adjust to bring the payment down. You know,

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if rates don't come down, loan amounts are going to

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be going up. Term is really the only thing to pull.

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But then again, you know how far out will lenders go.

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I mean, there are lenders out there that do specialize

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in things like ninety seven plus, you know, so you

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do see that. Then of course there are much more

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conservative lenders that don't do that. But I think ultimately yet,

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you know, is term going to get even longer? You know,

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who knows? You know, what happens if we increase you know,

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increase loan amount by four or five thousand dollars, you know,

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without pushing, that has a considerable impact on that monthly payment.

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I mean new car payments right now, we're already starting

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to see so far in Q one, like around seven

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to fifty a month, and add a couple grand on that,

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you're in the nine hundred range. And I mean we

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already do see you know, fifteen sixteen percent of new

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car payments are over one thousand dollars. And that doesn't

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mean it's a you know, luxury vehicle. It just means

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it's a forty thousand dollars vehicle at eight percent rate

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for you know, sixty or seventy two months.

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Yeah, and I'll put some respective on that too, because

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I've been in this bus, like I said, thirty plus

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years when I was a buying paper from car dealers

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on the desk. We were moving from forty eight to

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sixty months, and we thought the world was going to

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come to an end. We really they were like, oh

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my gosh, the sky's niffe and it didn't. Okay, And

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I think consumers adapt and they're smart. But I also

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think too, is that cars are lasting longer today than

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they were back then when I was when I first

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got into the business, Like, you know, cars you really

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had to worry about is this going to go one

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hundred thousand and two one thousand miles? Right? And today

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with the the quality of the cars being manufactured that

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that's not an issue like it was before. The term

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has had a lot to do with the useful life, right,

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and so today it's with cars lasting longer and consumers

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driving them longer, right, that term I don't think is

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as big as it was before because it still has

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useful life.

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Sure, it's an interesting point, ye. I think that's You

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can certainly see plenty of cars on the road that

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have been around for a long time.

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You maybe wonder a little bit how they're still running.

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And whenever you hear a noise with their own carer

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like that one's out here, so I'm sure mine is fine.

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What you know with the you know, other changes in

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kind of the macroeconomic environment over the past year or so,

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you know, rising inflation, higher home prices, sustained higher interest rates,

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not interest rate cuts not being as deep as is

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maybe we would have forecast.

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By this point. Are you seeing any notable changes in

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delinquency rates or or even just kind of you know,

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people who are slower to pay, or or changes autopay

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where people may have been much more confident in their

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cash flows in the past.

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I'll let Blinda, I'll let you answer that that was

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the topic of discussion a couple of weeks ago, and

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then I'll answer it from our perspective as well. So

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let don't you just maybe talk to the general market.

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Sure, yeah, absolutely so over the last couple of years, Yes,

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we have definitely seen delinquencies increase. The majority thing that

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we tend to track is going to be sixty day

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delinquency rates, and they certainly are increasing. You know, from

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a sixty day rate, we're very similar to the peak

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that we had back in two thousand and nine. I

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think some of the big differences we're seeing, of course,

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are you know, used values are still strong. So if

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you are repoing and you know, take sell on that

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card of the auction, sometimes the deficiency balance is it

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a little bit better. The area that I think we're

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seeing that that has get more focused on it has

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been some of the increased delinquency more in the near

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prime space. You know, credit scores six to six hundred

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to six sixty. You know, those delinquencies are increasing at

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a bit of a faster pace. But at the same time,

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the increase of delinquency went hand in hand when all

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of a sudden, you know, used values jumped up forty percent,

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new car prices you know, increased thirty forty percent, and

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those payments went from four hundred dollars to like I said,

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seven hundred, And that definitely has had a result in

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those rising delinquencies.

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And I would agree and tracking the industry that you've

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seen a rise across all credit spectrums, whether it's prime,

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super prime. Super prim really hasn't gone up that much,

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but it's been more than the near prime and the

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subprime is where that and so those are all up

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and also repossession rates are up to as well. We're

235
00:11:34.600 --> 00:11:37.799
singing that as well. But for us, we're a little unique.

236
00:11:38.000 --> 00:11:40.279
You say, we are up, but we are not even

237
00:11:40.320 --> 00:11:42.679
close to the industry. We're still tracking better the industry.

238
00:11:42.919 --> 00:11:44.639
A lot of that has to do with our membership.

239
00:11:44.759 --> 00:11:47.039
Is that about fifty little bit or fifty percent of

240
00:11:47.039 --> 00:11:49.039
our members they get along for us, have a government paycheck,

241
00:11:49.080 --> 00:11:53.399
so they their active duty, they're retired there, you know there,

242
00:11:53.440 --> 00:11:54.919
and it's a lot of them are dual income, so

243
00:11:54.960 --> 00:11:57.120
that I did my twenty years in the service or

244
00:11:57.120 --> 00:11:59.600
retired to get my military paycheck coming in, and I'm

245
00:11:59.600 --> 00:12:02.320
also reservist, but I'm also you know working on the

246
00:12:02.360 --> 00:12:04.559
local police department as well, So we got a little

247
00:12:04.559 --> 00:12:06.879
bit of that more employment stability. So I kind of

248
00:12:06.879 --> 00:12:09.559
expect that out of our book and how the how

249
00:12:09.559 --> 00:12:10.200
it performs.

250
00:12:10.360 --> 00:12:11.200
Yeah, that's a yeah.

251
00:12:11.399 --> 00:12:13.799
I think that's a good point about especially the potential

252
00:12:13.919 --> 00:12:16.639
like retire after in a twenty twenty five years of

253
00:12:16.679 --> 00:12:19.559
service and you're still you know working and of working

254
00:12:19.600 --> 00:12:21.600
age to take on kind of a second career in

255
00:12:21.639 --> 00:12:22.360
the private sector.

256
00:12:23.600 --> 00:12:23.720
Uh.

257
00:12:24.240 --> 00:12:25.879
You know, as you think about then, you know.

258
00:12:25.840 --> 00:12:30.120
Cars becoming more expensive and potentially more delinquencies are you

259
00:12:30.200 --> 00:12:32.639
seeing I know we're seeing in the data and increase

260
00:12:32.679 --> 00:12:37.840
in auto interested auto refy and refine those loans, maybe

261
00:12:37.919 --> 00:12:41.039
not necessarily for a better rate, but to extend that term,

262
00:12:41.120 --> 00:12:43.879
lower the payment, kind of reamortize it again, Are you

263
00:12:43.960 --> 00:12:46.879
seeing that as well in the information you're reviewing.

264
00:12:47.159 --> 00:12:49.879
Yeah, so we actually having an increased loan demand on that.

265
00:12:49.960 --> 00:12:54.000
I think it's I think it's the refi wave has

266
00:12:54.240 --> 00:12:57.200
got delayed a little bit and just my experience, just

267
00:12:57.799 --> 00:13:00.919
in my opinion, because rates aren't measured down. I mean

268
00:13:00.919 --> 00:13:03.559
they're down, your average plays down that more than than

269
00:13:03.559 --> 00:13:05.879
it was last year, but it's not meaningful enough because

270
00:13:05.919 --> 00:13:08.559
I still think the consumers looking at my cash flow,

271
00:13:08.639 --> 00:13:11.039
my what's my monthly payment? Right? And so I don't

272
00:13:11.039 --> 00:13:14.120
think it's that advantageous for them now. Is fifty dollars

273
00:13:14.120 --> 00:13:16.480
big for some consumers? It is for some consumers, it's

274
00:13:16.519 --> 00:13:18.440
not right. So I think there's a little bit of that.

275
00:13:18.480 --> 00:13:21.080
But we have seen a pick up. In matter of fact,

276
00:13:21.120 --> 00:13:23.679
I've talked about that why courting. I listened to five

277
00:13:23.720 --> 00:13:27.000
calls and two of those calls were refinances from another

278
00:13:27.039 --> 00:13:29.919
institution and we had a better rate and it was

279
00:13:29.960 --> 00:13:32.919
a meaningful difference for them, and we didn't advertise that.

280
00:13:32.960 --> 00:13:35.399
They just on their own volition came to it, So

281
00:13:35.399 --> 00:13:38.080
I think it's in their minds and so, but I

282
00:13:38.120 --> 00:13:39.799
just don't I think the wave is kind of pushed

283
00:13:39.799 --> 00:13:43.360
off because we're expecting more rate decreases this year. Now

284
00:13:43.399 --> 00:13:45.440
it's two now, it could be more if we go

285
00:13:45.480 --> 00:13:48.919
into recession. Who knows, but I but I know it's

286
00:13:48.919 --> 00:13:51.000
on their minds just because of inflation and cash flow

287
00:13:51.000 --> 00:13:52.279
and stuff like that. So, Londa, I don't know what

288
00:13:52.320 --> 00:13:52.720
you're seeing.

289
00:13:52.840 --> 00:13:55.639
Yeah, Actually we joked about this at CBA because I

290
00:13:55.679 --> 00:13:59.320
got my USAA auto loan reef I offer not too

291
00:13:59.399 --> 00:14:01.559
far before, not too far in advance of the CBA,

292
00:14:01.639 --> 00:14:07.240
being a USA member myself. But we do track for membership.

293
00:14:06.759 --> 00:14:09.039
By the way, you are very.

294
00:14:10.200 --> 00:14:12.399
But we do track and look at what we're seeing

295
00:14:12.440 --> 00:14:16.480
happening and REFI, and yes, there's definitely REFI occurring. It's

296
00:14:16.519 --> 00:14:18.919
not nearly as much as what it was when rates

297
00:14:18.960 --> 00:14:21.240
were really low, you know, in twenty twenty and twenty

298
00:14:21.279 --> 00:14:24.360
twenty one. But in what we're seeing as what you

299
00:14:24.440 --> 00:14:27.279
just mentioned is you know a consumer who maybe booked

300
00:14:27.279 --> 00:14:30.080
a seventy two month loan or you know, sixty five

301
00:14:30.120 --> 00:14:34.679
on average, and then eighteen nineteen twenty months into the loan,

302
00:14:34.720 --> 00:14:37.519
they're now refinancing again, So going from a seventy two

303
00:14:37.519 --> 00:14:40.559
month loan to a sixty five but after already paying

304
00:14:40.720 --> 00:14:44.080
you know, eighteen months and we are seeing in general

305
00:14:44.320 --> 00:14:49.360
about a sixty six dollars payment savings, you know absolutely

306
00:14:49.399 --> 00:14:52.240
it will have that consumer paying more over the overall

307
00:14:52.279 --> 00:14:54.360
life of the loan. But again, if it's dropping that

308
00:14:54.399 --> 00:14:58.080
payment sixty sixty to seventy dollars and they're able to

309
00:14:58.120 --> 00:15:01.600
stay current on that loan, you know that that's definitely

310
00:15:01.600 --> 00:15:03.519
a good thing. But obviously, yes, they're going to pay

311
00:15:03.519 --> 00:15:06.000
more of the overall life alone. But if rates come down,

312
00:15:06.039 --> 00:15:09.120
we do expect refin to pick up a lot more.

313
00:15:09.240 --> 00:15:11.240
And we do a lot of education to our members

314
00:15:11.240 --> 00:15:13.120
on when is the right time for you, because you're right,

315
00:15:13.240 --> 00:15:15.240
if you're twelve months in and you and you're you

316
00:15:15.279 --> 00:15:17.200
do a sixty month loan, and you do another sixty

317
00:15:17.240 --> 00:15:20.039
month loan and refinance, you'd essentially get to send me

318
00:15:20.039 --> 00:15:21.480
two months, right, And so you got to look at

319
00:15:21.480 --> 00:15:24.200
the total costs. So we try to educate them. But

320
00:15:24.240 --> 00:15:25.799
I will tell you that a lot of just in general,

321
00:15:25.799 --> 00:15:28.000
consumers are a lot of just manage their household cash

322
00:15:28.000 --> 00:15:30.639
flow and when you know, we still of that inflation

323
00:15:30.679 --> 00:15:33.000
we're dealing with, and then who knows you Like we

324
00:15:33.039 --> 00:15:35.320
talked about terrorists what the impact might be on other

325
00:15:35.360 --> 00:15:38.480
consumer goods out there right that may happen. So I

326
00:15:38.480 --> 00:15:40.519
think it's I think it's on their minds and we're

327
00:15:40.519 --> 00:15:42.639
seeing an uptick on it. Not the wave that we

328
00:15:42.679 --> 00:15:44.360
thought it was going to be though, sure.

329
00:15:44.159 --> 00:15:46.960
But maybe maybe just more consumers instead of like people

330
00:15:47.000 --> 00:15:50.240
being more advantageous about rates because there's not as much

331
00:15:50.840 --> 00:15:53.879
margin there people who need the free cash flow and

332
00:15:53.919 --> 00:15:56.679
maybe you're paying a little more long term, but are

333
00:15:56.720 --> 00:16:00.279
making their day to day month months more affordable if

334
00:16:00.279 --> 00:16:02.000
they're a little more Yeah.

335
00:16:01.720 --> 00:16:03.480
I also think too, it's a little bit of an

336
00:16:03.919 --> 00:16:05.879
I don't know like ego things the right word, but

337
00:16:06.320 --> 00:16:08.679
how people compare your Fyco score? I was planning golf,

338
00:16:08.919 --> 00:16:10.240
get a couple of who my buddy goes. I know

339
00:16:10.279 --> 00:16:12.440
you're packing. What's your Fyco score? I guess is my

340
00:16:12.559 --> 00:16:13.200
higher than yours?

341
00:16:13.279 --> 00:16:13.440
Right?

342
00:16:13.519 --> 00:16:15.039
And I think people going what you get on your car?

343
00:16:15.240 --> 00:16:17.519
Well I got nine percent? Well I got seven. You

344
00:16:17.519 --> 00:16:18.879
know then you feel like, oh I got to go

345
00:16:18.919 --> 00:16:20.159
out and get seven. Now you know what I mean,

346
00:16:20.240 --> 00:16:22.120
so I think it's one of those things that's just like,

347
00:16:22.399 --> 00:16:23.840
but I really think it's going to come down to

348
00:16:24.480 --> 00:16:26.559
is it worth their time and effort to refinance and

349
00:16:26.639 --> 00:16:28.480
is it going to make a difference. I think anything

350
00:16:28.480 --> 00:16:31.720
where fifty dollars can be meanful for a lot of consumers. Yeah.

351
00:16:31.759 --> 00:16:34.960
Absolutely, It's funny we're talking about this. The score comparisons

352
00:16:35.039 --> 00:16:38.240
totally isn't aside. At one of the conferences last week

353
00:16:38.320 --> 00:16:40.759
at the evening reception, was hanging out with a couple

354
00:16:40.720 --> 00:16:43.960
of clients and or just industry folks, and they said

355
00:16:43.960 --> 00:16:46.240
the same thing. They sit there and compare their scores,

356
00:16:46.279 --> 00:16:48.879
and they both whipped out the Experience app and were like, see,

357
00:16:49.200 --> 00:16:51.320
see this is my score. Mine's better than yours.

358
00:16:52.159 --> 00:16:56.039
Yeah, that is funny, and it is. Everything's a little

359
00:16:56.080 --> 00:16:57.759
bit gamified today.

360
00:16:57.879 --> 00:17:02.519
So well, you know, I know, like obviously there's a

361
00:17:02.519 --> 00:17:05.079
lot more I mean, there's a you know, a pretty

362
00:17:05.119 --> 00:17:07.759
solid trend for a while of people buying SUVs and

363
00:17:07.759 --> 00:17:10.680
bigger SUVs, and even though they continued to go up

364
00:17:10.720 --> 00:17:13.200
in price and many of them hit the one hundred

365
00:17:13.240 --> 00:17:16.759
thousand dollars mark and more, you know, what are you

366
00:17:16.839 --> 00:17:20.680
seeing on kind of trends and car buying behavior now

367
00:17:20.720 --> 00:17:24.160
over the past year and you know into twenty twenty five,

368
00:17:24.799 --> 00:17:29.119
particularly around like SUVs and then electric vehicles, which I know,

369
00:17:29.319 --> 00:17:32.279
you know, depending on the manufacturer, have been have grown

370
00:17:32.279 --> 00:17:35.519
at different rates. Like frankly, I had an Audi EV

371
00:17:36.200 --> 00:17:40.559
for a few years and traded it on a kind

372
00:17:40.559 --> 00:17:42.799
of went the opposite way. It went to a full

373
00:17:42.839 --> 00:17:45.480
size Ford Bronco from an EV after a few years.

374
00:17:46.000 --> 00:17:47.759
I could see using an EV in the future too,

375
00:17:47.920 --> 00:17:51.720
but it really needed the suv space at the time.

376
00:17:52.359 --> 00:17:55.640
So just are you seeing that any trends in buying

377
00:17:55.680 --> 00:17:56.279
behavior there.

378
00:17:56.359 --> 00:17:58.920
It's it's definitely an suv market. When we look at

379
00:17:58.960 --> 00:18:01.400
the kind of vehicles, especially on new cars well used

380
00:18:01.400 --> 00:18:04.200
cars too, that consumers are purchasing. The majority of the

381
00:18:04.200 --> 00:18:08.000
market's the suv over sixty percent of new vehicles or SUVs.

382
00:18:08.440 --> 00:18:12.079
And it's not necessarily the luxury The biggest volume are

383
00:18:12.119 --> 00:18:14.960
really the non luxury SUVs. It's the CRV, it's the

384
00:18:15.359 --> 00:18:19.079
Raft four, you know, it's the Hyundais. So it's really

385
00:18:19.640 --> 00:18:22.039
you know, that non luxury kind of small to mid

386
00:18:22.079 --> 00:18:26.440
size suv that really dominates what drives the market. And

387
00:18:26.480 --> 00:18:29.240
of course as new cars really switched over to SUV's

388
00:18:29.240 --> 00:18:32.240
a handful of years ago. That's what the used cars

389
00:18:32.240 --> 00:18:34.480
are too. Of course, on the U side, you know,

390
00:18:34.519 --> 00:18:36.400
you've got a lot of the F one fifties, so

391
00:18:36.440 --> 00:18:38.720
it's a lot of a lot of pickups and then

392
00:18:38.759 --> 00:18:42.319
those SUVs. It's interesting on the EV front though, because

393
00:18:42.480 --> 00:18:44.559
just as Mark was mentioning, kind of you know, a

394
00:18:44.680 --> 00:18:47.079
ramp up of people rushing to the dealers to get

395
00:18:47.079 --> 00:18:50.160
the car pre tariff, kind of the same thing I

396
00:18:50.200 --> 00:18:53.920
believe is happening in the EV space about potentially you know,

397
00:18:54.000 --> 00:18:57.599
losing the tax thread and the subsidies, because we saw

398
00:18:57.720 --> 00:19:02.400
so far in Q one and EV's are almost ten

399
00:19:02.440 --> 00:19:06.319
percent of new car purchases, and we ended last year

400
00:19:07.119 --> 00:19:09.559
lower than that, like eight to nine percent. So we've

401
00:19:09.559 --> 00:19:14.440
definitely seen a ramp up. And what was most notable was,

402
00:19:14.599 --> 00:19:18.359
you know, last is leasing on EV. You know, last

403
00:19:18.440 --> 00:19:21.880
year we ended you know, around forty percent of EV's released.

404
00:19:22.000 --> 00:19:24.279
We're almost at sixty percent right now for Q one.

405
00:19:24.359 --> 00:19:27.519
So I think there is that rush of people who

406
00:19:27.640 --> 00:19:30.000
are in the market for an EV or interested in

407
00:19:30.000 --> 00:19:31.920
getting an EV and getting it while they can still

408
00:19:31.960 --> 00:19:34.799
take advantage of that least credit.

409
00:19:35.440 --> 00:19:37.160
I would say, that's a good point. I also think

410
00:19:37.359 --> 00:19:40.720
getting back lou Itt to terraffs, I actually think EV's

411
00:19:40.759 --> 00:19:45.559
will be impacted more because just because of terrifs in general, right,

412
00:19:45.599 --> 00:19:48.559
and because we're the parts of manufacturers. But the prices

413
00:19:48.559 --> 00:19:50.680
will even higher because the incentives are going away from

414
00:19:50.680 --> 00:19:53.119
the federal government. Right. So I think the pain that

415
00:19:53.119 --> 00:19:55.640
the price shock will be higher in the EV. So

416
00:19:56.000 --> 00:19:58.000
who's to see what's going to happen there, but because

417
00:19:58.000 --> 00:20:00.960
I think it's gonna hit EV's harder. On the suv,

418
00:20:01.079 --> 00:20:03.920
we tracked just like everybody else. The number one of

419
00:20:04.160 --> 00:20:06.680
truck finance f one fifty, that's our number one financed.

420
00:20:06.880 --> 00:20:11.119
We're seeing that. I think that you've seen manufacturers are

421
00:20:11.160 --> 00:20:14.519
dropping cars now. Passenger cars are going SUVs and trucks

422
00:20:14.519 --> 00:20:17.400
and stuff. I think the same thing I just taught

423
00:20:17.400 --> 00:20:20.799
about with the term and cars lasting longer, those SUVs

424
00:20:20.799 --> 00:20:23.960
have gotten more economical because they're getting better gas miles day.

425
00:20:24.279 --> 00:20:26.559
I remember back in the two thousand and early two thousand,

426
00:20:26.559 --> 00:20:28.359
we had that recession when the card was asking and

427
00:20:28.400 --> 00:20:30.759
set us to buy cars right there, pushing and the

428
00:20:30.920 --> 00:20:34.599
suv sales went that. Yeah, remember that cash for colluctors

429
00:20:34.599 --> 00:20:37.319
and then and then suv sales, I mean dropped off

430
00:20:37.319 --> 00:20:40.079
the cliff because gas prices were like double and then

431
00:20:40.079 --> 00:20:42.119
all of a sudden, gas prices went down and the

432
00:20:42.200 --> 00:20:44.640
SUV's I mean, it was like, didn't you learn your lesson?

433
00:20:44.720 --> 00:20:46.759
It's like, you're still going to have that issue. But

434
00:20:47.440 --> 00:20:49.559
I think so, I don't think this is susceptible to

435
00:20:49.640 --> 00:20:52.599
gas prices like it was before. And yeah, but but

436
00:20:52.640 --> 00:20:55.480
yes they are expensive and so but I think also too,

437
00:20:55.519 --> 00:20:58.519
those passenger cars, like those luxury cars, they're dropping their

438
00:20:58.640 --> 00:21:00.640
entry levels now because they just want you're going to

439
00:21:00.680 --> 00:21:02.759
get the fully loaded and the top of the line.

440
00:21:02.759 --> 00:21:04.839
And so it's a little bit of a give and

441
00:21:04.839 --> 00:21:06.519
take on that. But we are seeing, you know, the

442
00:21:06.640 --> 00:21:08.599
more on the suv just because it's I think is

443
00:21:08.599 --> 00:21:10.880
a more if you get a growing family, those types

444
00:21:10.920 --> 00:21:11.240
of things.

445
00:21:11.319 --> 00:21:13.240
And once you get used to driving an suv, it's

446
00:21:13.359 --> 00:21:15.559
very hard to go back to a sedan. I have found.

447
00:21:15.559 --> 00:21:18.519
So I've tried to do it now twice over and

448
00:21:19.240 --> 00:21:21.279
over the past probably twenty years where I had an

449
00:21:21.319 --> 00:21:26.319
suv for a period tried sedan, I've made it. I

450
00:21:26.319 --> 00:21:29.000
think the longest was my My EV, My Out of EV,

451
00:21:29.119 --> 00:21:31.799
which made it about two years. But I also work

452
00:21:31.839 --> 00:21:34.319
from home, so I don't drive it a lot. And

453
00:21:34.359 --> 00:21:36.319
we also had an SUV during that period that was

454
00:21:36.319 --> 00:21:36.759
my husband.

455
00:21:36.880 --> 00:21:39.000
So no, and I'm the same way. I went from

456
00:21:39.039 --> 00:21:42.039
the largest I had an expedition and it wasn't worried

457
00:21:42.039 --> 00:21:43.880
about Gasmas for me, my choices. It was just too

458
00:21:43.880 --> 00:21:46.720
big because kids were gone and they're they're they're on

459
00:21:46.720 --> 00:21:49.319
their own now. So I went to Fort Bronco. It's smaller,

460
00:21:49.359 --> 00:21:50.519
but it's still an suv, right.

461
00:21:50.559 --> 00:21:55.240
I wanted to space as really Yeah, because it fits

462
00:21:55.240 --> 00:21:56.000
in my garage.

463
00:21:56.640 --> 00:21:57.680
Oh because yeah, I know.

464
00:21:57.799 --> 00:21:59.599
I I will say my Bronco takes up a lot

465
00:21:59.599 --> 00:22:02.200
of space in the crash, So I have a.

466
00:22:02.160 --> 00:22:05.839
Pretty tall, big one and it fills fills the space

467
00:22:05.880 --> 00:22:06.319
out there.

468
00:22:06.920 --> 00:22:07.359
Uh you know.

469
00:22:07.640 --> 00:22:09.599
But one thing I do want to bring up if

470
00:22:09.599 --> 00:22:11.680
I can, So when we when we start talking about

471
00:22:11.680 --> 00:22:13.960
how so much of the market is moved to SUVs,

472
00:22:14.519 --> 00:22:17.200
you know that does have the definite spillover impact into

473
00:22:17.240 --> 00:22:19.599
the used car market because one of the other trends

474
00:22:19.640 --> 00:22:23.119
we're seeing that kind of ties to the affordability and

475
00:22:23.200 --> 00:22:27.000
you know, the overall economics in the industry is because

476
00:22:27.200 --> 00:22:30.440
more of the used inventory r SUVs. It is pushing

477
00:22:30.480 --> 00:22:33.519
more consumers into older vehicles too, in order to get

478
00:22:33.559 --> 00:22:36.119
to a more affordable payment. So you know, like nine

479
00:22:36.240 --> 00:22:39.200
ten plus year old vehicles. You know, we're definitely seeing

480
00:22:39.240 --> 00:22:40.480
an increased demand for that.

481
00:22:40.720 --> 00:22:42.759
And that used to be luxury, right, you see that

482
00:22:42.799 --> 00:22:45.279
more in luxury if somebody got a nice antique mercee

483
00:22:45.400 --> 00:22:47.720
or something like that. That's not the case today. It's

484
00:22:47.519 --> 00:22:49.680
just it's affordability. And I'm gonna try to get SUV

485
00:22:49.680 --> 00:22:51.759
and I have to go that back far in year

486
00:22:52.400 --> 00:22:54.519
to get to fill my needs.

487
00:22:54.640 --> 00:22:57.440
Sure, And then you know, in switching back to electric

488
00:22:57.480 --> 00:23:01.640
vehicles for a minute, maybe both mentioned the longevity of

489
00:23:01.680 --> 00:23:06.480
the cars lasts longer, so potentially longer longer terms could

490
00:23:06.519 --> 00:23:10.640
be could be in the horizon. But still I think

491
00:23:10.680 --> 00:23:13.599
some concern with the EVS on battery life and then

492
00:23:13.680 --> 00:23:16.039
what that means and the cost of replacing those batteries

493
00:23:16.039 --> 00:23:18.359
if they if they die on the car. So you've

494
00:23:18.359 --> 00:23:22.279
got less maintenance and regular maintenance. But but that's a

495
00:23:22.279 --> 00:23:27.680
pretty big potential risk to to your electric vehicle. What

496
00:23:27.759 --> 00:23:31.480
unique challenges do you see in auto financing around things

497
00:23:31.480 --> 00:23:36.240
like residual values and and UH and the charging infrastructure

498
00:23:36.480 --> 00:23:39.039
and lending for an electric vehicle.

499
00:23:39.119 --> 00:23:42.000
Well, let's yes, we don't lease, but I do know

500
00:23:42.039 --> 00:23:44.240
that as a concern, I think it's keeping a lot

501
00:23:44.279 --> 00:23:47.200
of buyers out of the market. On ev about Hey,

502
00:23:47.240 --> 00:23:48.720
I got to really I got to put in four

503
00:23:48.720 --> 00:23:51.519
thousand and five thousand charging in the microags right on

504
00:23:51.559 --> 00:23:53.519
top of that, or I got to take it to

505
00:23:53.680 --> 00:23:55.519
the grocery store and charge it up on your grocery

506
00:23:55.519 --> 00:23:57.079
and w't get a full charge. Those type of things.

507
00:23:57.119 --> 00:23:59.519
So most of it, I'll just tell you my experience.

508
00:23:59.599 --> 00:24:03.079
My I circle closer. It's your third car, it's not

509
00:24:03.119 --> 00:24:06.119
their primary car, or they're an urban dweller and they

510
00:24:06.160 --> 00:24:08.680
live in where they have other modes of transportation to

511
00:24:08.720 --> 00:24:10.440
get to the airport, you know, or that kind of thing,

512
00:24:10.799 --> 00:24:13.559
or they But I just so I think that's still there,

513
00:24:13.559 --> 00:24:16.440
and think about we talked about this at the CBA conference.

514
00:24:16.559 --> 00:24:18.640
Was a lot of those buyers too. They are on

515
00:24:18.680 --> 00:24:21.559
the sidelines. I live in an apartment complex and there's

516
00:24:21.599 --> 00:24:24.319
nowhere to charge it, right, So it's just that. So

517
00:24:24.359 --> 00:24:27.119
I think that once the infrastructure comes together, and I

518
00:24:27.119 --> 00:24:30.720
think it's just I think it will naturally take off,

519
00:24:30.799 --> 00:24:33.480
just like we went from horse and buggy to a

520
00:24:33.480 --> 00:24:36.039
combustible engine. The government didn't mandate you had to get

521
00:24:36.039 --> 00:24:38.039
off the worst and buggy to a car, right. And

522
00:24:38.079 --> 00:24:40.599
I think that if the market force is right, supply

523
00:24:40.640 --> 00:24:44.759
and demand, the right things come together, like infrastructure longer, charging,

524
00:24:44.960 --> 00:24:47.880
you know, longer, I think, then the man will start

525
00:24:47.920 --> 00:24:49.960
to pick up. Price points will come into play. I

526
00:24:50.000 --> 00:24:51.920
think once that that starts to get worked out, the

527
00:24:51.920 --> 00:24:54.079
market forces will work and I'll think we'll get some

528
00:24:54.079 --> 00:24:55.279
type of equilibrium there.

529
00:24:55.400 --> 00:24:58.079
Yeah, And you know the point around residuals. You know,

530
00:24:58.160 --> 00:25:00.279
there's a lot of questions around that with you know,

531
00:25:00.319 --> 00:25:04.559
price drops that occurred among several manufacturers and what will

532
00:25:04.599 --> 00:25:07.039
that used car value be when it comes back. And

533
00:25:07.079 --> 00:25:10.759
I think that's also why we do see so much leasing.

534
00:25:11.119 --> 00:25:12.759
I mean, like I said, when I'm looking at the

535
00:25:12.799 --> 00:25:17.200
EV space right now, it's almost sixty percent leased, loans

536
00:25:17.200 --> 00:25:19.880
on only a third and the rest of it's cash. So,

537
00:25:20.519 --> 00:25:23.079
you know, I think leasing definitely has that comfort level

538
00:25:23.079 --> 00:25:25.640
from a consumer standpoint in knowing that, hey, your lease

539
00:25:25.720 --> 00:25:28.559
is up twenty four months from now, thirty six months

540
00:25:28.559 --> 00:25:30.559
from now, you can you know, go and return it

541
00:25:30.599 --> 00:25:32.759
and go back into another vehicle. So I think there

542
00:25:32.839 --> 00:25:35.720
is definitely that comfort level. And one of the comments

543
00:25:35.759 --> 00:25:38.160
that has come up over the last several conferences I've

544
00:25:38.160 --> 00:25:41.759
been at, especially around EV, is you know, no single vehicle,

545
00:25:41.920 --> 00:25:45.440
whether it's an ICE, an SUV, a Sedana convertible EV,

546
00:25:45.960 --> 00:25:48.799
no single vehicle will be perfect for everybody, nor will

547
00:25:48.799 --> 00:25:51.079
it meet you know, one hundred percent of your driving needs,

548
00:25:51.480 --> 00:25:54.720
you know, so you find the one that fits the most.

549
00:25:54.720 --> 00:25:57.119
And Mark's point frequently it's a second vehicle.

550
00:25:58.839 --> 00:26:01.759
I agree. I think the lease is attracted just because

551
00:26:01.799 --> 00:26:04.119
of it's a payment issue, but I also think too

552
00:26:04.680 --> 00:26:07.480
when we actually go and talk to our members and

553
00:26:07.599 --> 00:26:09.920
ask them about their carbine experience, what they did and

554
00:26:10.440 --> 00:26:12.359
what they end up doing, a lot of them I

555
00:26:12.599 --> 00:26:14.640
choose the lease because I'm not sure if I want

556
00:26:14.680 --> 00:26:16.519
to live with an EV for the you know, for

557
00:26:16.599 --> 00:26:19.440
five years, I'll do it for two see that I

558
00:26:19.440 --> 00:26:21.240
can make it work. So I think that's a big

559
00:26:21.279 --> 00:26:23.359
part of the lease. In the sixty percent plus of

560
00:26:23.400 --> 00:26:25.640
the market's leasing for EV, I think it's like I'm

561
00:26:25.640 --> 00:26:28.720
not committed, right, So it's like I'm kind of partially dating,

562
00:26:28.799 --> 00:26:31.039
right kind of thing. I don't keep my options, you know.

563
00:26:31.319 --> 00:26:33.559
So yeah, I made it two and a half years,

564
00:26:33.599 --> 00:26:36.319
and I do believe I'll own an EV again. I

565
00:26:36.440 --> 00:26:38.680
liked it, but again I'm that person. I live in

566
00:26:38.680 --> 00:26:41.359
the suburbs, I have a garage. I have the charger

567
00:26:41.400 --> 00:26:43.680
in my garage so I can plug it in when

568
00:26:43.680 --> 00:26:46.200
I was home. If I go into our office, the

569
00:26:45.799 --> 00:26:48.960
garage in our office has charge a road chargers. I

570
00:26:48.960 --> 00:26:52.519
can charge it either place. And definitely more of a challenge.

571
00:26:53.000 --> 00:26:55.240
I think the road trips and the infrastructure to get

572
00:26:55.279 --> 00:26:56.680
from here to there and to not have to sit

573
00:26:56.720 --> 00:27:01.759
and wait is certainly potential obstacle. And we were kind

574
00:27:01.759 --> 00:27:04.079
of that bucket too, where you know, it was my car,

575
00:27:04.160 --> 00:27:06.880
but we had a large SUV that we could also

576
00:27:07.000 --> 00:27:10.680
drive that was more of our primary, primary family car.

577
00:27:11.279 --> 00:27:13.759
But I am really hoping that the infrastructu improves because

578
00:27:13.759 --> 00:27:15.759
I would love to have another one. And in the

579
00:27:15.759 --> 00:27:17.759
middle of winter in Ohio, it's really nice to never

580
00:27:17.799 --> 00:27:18.799
have to go to a gas station.

581
00:27:19.079 --> 00:27:21.440
Yes, it is, I would agree, Linn. I would add too,

582
00:27:21.559 --> 00:27:25.039
I think, you know, for the consumers are, but they're

583
00:27:25.079 --> 00:27:27.920
not there yet. A true plug in hybrid. I think

584
00:27:27.920 --> 00:27:29.759
that which gave the option i'd go one hundred percent

585
00:27:29.799 --> 00:27:32.240
electric or I can do get do that long trip

586
00:27:32.440 --> 00:27:35.000
to see my family in two states over and not

587
00:27:35.039 --> 00:27:37.119
have to worry about And as great as I'm all

588
00:27:37.160 --> 00:27:38.839
electric and I'm going back and forth to work on

589
00:27:38.880 --> 00:27:41.039
my daily chores, but when I want that line, I

590
00:27:41.039 --> 00:27:42.759
want that true plug. But I mean that the longest

591
00:27:42.839 --> 00:27:45.519
hybrid now is going like what forty miles on electric

592
00:27:45.519 --> 00:27:46.960
and then has to go over to gas. And so

593
00:27:47.359 --> 00:27:49.279
if that gets out to the two hundred three hundred

594
00:27:49.359 --> 00:27:52.839
on a true hybrid plugin, I think that would generate demand.

595
00:27:53.000 --> 00:27:53.720
I really do.

596
00:27:55.160 --> 00:27:55.279
Now.

597
00:27:55.359 --> 00:27:57.240
I think that's that would be a great, a great

598
00:27:57.640 --> 00:27:58.519
new option to have.

599
00:27:59.559 --> 00:28:02.160
So you know, as you think about then, you know,

600
00:28:02.160 --> 00:28:04.400
we talked a little bit about the tariffs and UH

601
00:28:04.599 --> 00:28:06.279
supply and demand of what that may look like for

602
00:28:06.319 --> 00:28:10.680
both new and used cars with rates you know coming

603
00:28:10.799 --> 00:28:13.480
in during COVID, certainly a lot of supply chain chain

604
00:28:13.559 --> 00:28:17.720
disruptions across every industry UH, and the price of used

605
00:28:17.720 --> 00:28:23.119
cars UH spiked through the roof. You know, inventory levels

606
00:28:23.119 --> 00:28:24.880
aren't necessarily fully back to normal.

607
00:28:24.960 --> 00:28:26.039
And then you know your comment.

608
00:28:26.119 --> 00:28:28.839
I think Mark was interesting about you know, Audi leaving

609
00:28:29.359 --> 00:28:31.559
cars at the port in Maryland and not even moving

610
00:28:31.599 --> 00:28:35.039
them UH to dealerships because they don't have buyers at

611
00:28:35.039 --> 00:28:38.359
the moment. But how are you seeing that play out

612
00:28:38.440 --> 00:28:41.880
with just the inventory? Uh, any supply chain disruptions you're

613
00:28:41.920 --> 00:28:44.799
seeing because of the tariffs or or related to other

614
00:28:44.960 --> 00:28:46.519
events going on globally, I.

615
00:28:46.480 --> 00:28:51.359
Think it's too soon. That's supply chain disruption. I heard

616
00:28:52.200 --> 00:28:54.440
a couple of the auto analysts out there, you know,

617
00:28:54.680 --> 00:28:56.640
on some of the on some of the business updates,

618
00:28:57.039 --> 00:28:59.000
it's going to be six months until we start feeling

619
00:28:59.039 --> 00:29:01.160
the impact. I think it's a longer than I thought.

620
00:29:01.160 --> 00:29:03.160
It was. Four to six months, depends on the brand

621
00:29:03.200 --> 00:29:05.559
to make four to six months, It depends on where

622
00:29:05.559 --> 00:29:08.880
they're getting their parts from. But I just I think

623
00:29:08.880 --> 00:29:10.680
it's going be six months. Hopefully we'll get this stuff

624
00:29:10.720 --> 00:29:12.319
wrapped up before then so it doesn't make kind of

625
00:29:12.319 --> 00:29:16.359
an issue. That's what I'm hoping over market. Yeah, and

626
00:29:16.400 --> 00:29:19.200
I think there will be some short term things, but

627
00:29:19.279 --> 00:29:22.359
not as I don't think it'll be as deep as

628
00:29:22.400 --> 00:29:24.079
we thought it was going to be. But if we

629
00:29:24.319 --> 00:29:26.319
blow through that six months, that's when I think we'll

630
00:29:26.359 --> 00:29:29.759
start to see it could curb demand and pricing.

631
00:29:29.960 --> 00:29:32.559
Yeah, all right, well, I definitely appreciate you having it

632
00:29:32.599 --> 00:29:35.680
on I think one last question that I'd like to

633
00:29:36.319 --> 00:29:38.799
pose to each of you to kind of close this

634
00:29:38.880 --> 00:29:43.720
out today. Forward looking, you know, obviously a lot of uncertainty,

635
00:29:44.000 --> 00:29:47.720
lot of variability, things that are crapping up in every

636
00:29:47.759 --> 00:29:51.200
area that maybe wasn't on the on the BINGO card

637
00:29:51.319 --> 00:29:55.160
for twenty twenty five. But I like each of your

638
00:29:55.200 --> 00:29:58.079
perspectives and what you see is maybe the top market

639
00:29:58.200 --> 00:30:01.920
or regulatory shifts on the horizon that banks and lenders

640
00:30:01.920 --> 00:30:04.680
should really be thinking about and tracking as they plan

641
00:30:04.920 --> 00:30:09.400
their auto finance strategies for twenty twenty five or really

642
00:30:09.440 --> 00:30:11.160
for the rest of twenty twenty five, since we're a

643
00:30:11.240 --> 00:30:12.039
quarter in already.

644
00:30:12.200 --> 00:30:14.920
Yeah you, Linda, Yeah, I just.

645
00:30:16.839 --> 00:30:19.039
I think right now, like well, like we said earlier,

646
00:30:19.039 --> 00:30:21.400
there's so much uncertainty that I don't think we can

647
00:30:21.440 --> 00:30:26.119
anticipate or really know what we can expect to see.

648
00:30:26.359 --> 00:30:28.559
I think people are just you know, from an mark

649
00:30:28.599 --> 00:30:30.480
you can certainly speak better to this, but I think

650
00:30:30.559 --> 00:30:33.039
lenders are just kind of putting more of the guardrails around,

651
00:30:33.160 --> 00:30:35.119
keeping an eye on, you know, what are what are

652
00:30:35.160 --> 00:30:37.799
the latest data trends, what's the latest information you're hearing

653
00:30:37.799 --> 00:30:41.039
from dealers, what's the you know, the latest data points

654
00:30:41.039 --> 00:30:44.359
that we're getting from the variety of data sources. But everyone,

655
00:30:44.359 --> 00:30:47.440
I think wishes they had that crystal ball. But things

656
00:30:47.480 --> 00:30:51.160
are changing so quickly and the forecasts are changing so

657
00:30:51.240 --> 00:30:53.880
quickly that I think there's just really still a lot

658
00:30:53.920 --> 00:30:56.200
of uncertainty as to exactly what we're going to be

659
00:30:56.200 --> 00:30:56.839
seeing this year.

660
00:30:56.920 --> 00:31:00.680
Yeah, I'm and I'm less worried about regulatory and governmental

661
00:31:00.720 --> 00:31:02.559
now with the administration we have. I mean, there are

662
00:31:02.559 --> 00:31:05.960
things are thinker rolling back, so I'm less worried about that.

663
00:31:06.880 --> 00:31:08.960
I'm more worried at the macro environment. I mean, it's

664
00:31:09.039 --> 00:31:11.119
just the uncertainty there. I think that's more and what

665
00:31:11.160 --> 00:31:14.200
the impact is. So we're we're putting together a playbook.

666
00:31:14.279 --> 00:31:16.119
So if this were to happen, what's to happen? What

667
00:31:16.440 --> 00:31:18.319
are the canary and the coal mine kind of metrics

668
00:31:18.319 --> 00:31:21.200
we want to monitor, Like we start seeing even before

669
00:31:21.240 --> 00:31:24.400
they walk into the dealership. Are they is the research

670
00:31:24.440 --> 00:31:27.000
for what's my car worth? What's the new car going

671
00:31:27.000 --> 00:31:29.359
to costly? Is that going down right or is it

672
00:31:29.400 --> 00:31:32.240
going up? Is it staying flat? Before they hit the dealership,

673
00:31:32.240 --> 00:31:34.079
we're talking to dealers, staying close to them, even though

674
00:31:34.079 --> 00:31:36.599
we're a direct lender. What goes on there is really important.

675
00:31:36.599 --> 00:31:38.920
They're part of our ecosystem and we're just trying and

676
00:31:38.920 --> 00:31:40.920
then the health of that of that consumers that go

677
00:31:41.039 --> 00:31:43.680
through there and they're making their payments, and so we are.

678
00:31:43.759 --> 00:31:46.759
We've ready to tell lenders if advice is make sure

679
00:31:46.759 --> 00:31:50.000
that you have the best experience, because the best. And

680
00:31:50.039 --> 00:31:52.279
then if through the whole life cycle, through making it

681
00:31:52.359 --> 00:31:54.480
loan service it alone, make it easy to change their

682
00:31:54.519 --> 00:31:56.599
their due date, make it easy to change their payment amount,

683
00:31:56.599 --> 00:31:58.519
whatever they want to change things. And then when you

684
00:31:58.599 --> 00:32:00.680
have to collect them, when you make it easy to

685
00:32:00.720 --> 00:32:02.960
get a hold of you so you can make arranges

686
00:32:03.000 --> 00:32:05.400
to get them through that time. I'm more focused on

687
00:32:05.559 --> 00:32:08.680
that than I but but I can't. You know, it's

688
00:32:08.720 --> 00:32:10.920
like who what's going to happen. I'm more about macro

689
00:32:11.000 --> 00:32:13.039
than I am about the internal stuff. We're just trying

690
00:32:13.039 --> 00:32:15.640
to prepare our cells for which way what's going to happen,

691
00:32:15.680 --> 00:32:19.400
and have scenarios for each one however it may play out.

692
00:32:19.400 --> 00:32:21.720
And I think it's an accommodation all those things. I

693
00:32:21.720 --> 00:32:23.599
don't think it's any one silver bullet.

694
00:32:23.680 --> 00:32:26.440
Yeah, control the things you can control and.

695
00:32:26.480 --> 00:32:28.599
Worry about that if you provide a great I mean

696
00:32:28.799 --> 00:32:30.799
it's like I've always toe you when I used to

697
00:32:30.839 --> 00:32:33.759
run collections, and I tell we want them to think

698
00:32:33.799 --> 00:32:35.440
of us, to repay us. You're going to make it

699
00:32:35.480 --> 00:32:38.720
easy and not make them feel embarrassed because it's a

700
00:32:38.759 --> 00:32:41.400
normal event. Those things happen. They'll pay you before the

701
00:32:41.400 --> 00:32:43.720
one that does the harder technique, right, I mean, just

702
00:32:43.880 --> 00:32:45.680
we're all like they'll work with me. I'm willing to

703
00:32:45.680 --> 00:32:48.319
work with you if you get that across. So prepare

704
00:32:48.319 --> 00:32:51.799
yourselves those things you can control customer experience.

705
00:32:51.799 --> 00:32:55.480
Well, yes, definitely, Thank you, appreciate, appreciate both of you

706
00:32:56.119 --> 00:32:57.759
for joining us today on the podcast.

707
00:32:58.000 --> 00:33:02.279
Thank you Lenn, Thank you Malinda Ba