Advice for Lenders Intent on Marketing Automobile Loans Direct-to-Consumers: Don't Tug on Superman's Cape

This Financial Insights Newsflash discusses CapitalOne Auto Finance's recently issued news release describing results of a California consumer survey: Buying and financing a car is stressful, and 93% would prefer to take care of everything online. The Virginia-based lender heralded the launch of its new Web site (www.DriveOne.com) as a one-stop shop for consumers to purchase and finance automobiles. Sound familiar, a little like old news? It should.

Over the last fifteen years, much of the focus of auto lenders has been on how to wrest control of auto customers from the dealerships. Using the online channel is just the latest twist. It never works; dealers have the cars, they win.