How do dealers and lenders segment auto leads by equity?
Short answer
Dealers and lenders segment auto leads by comparing each vehicle's estimated market value with its estimated loan payoff balance, then layering APR spread, credit tier and loan age on top. That produces four actionable segments: trade-in candidates, refinance candidates, subprime rate-improvement candidates, and loans that are not yet ready.
What are the four auto equity lead segments?
Trade-In Candidate
How to identify vehicle owners with positive equity who are ready to trade in: the equity formula, loan-age window and credit criteria EquiLane scores against.
Refinance Candidate
Identify auto loans paying above the market average APR: how APR spread, equity and remaining term determine which borrowers are refinance-ready.
Subprime Rate Improvement
How to spot subprime auto borrowers whose payment history and equity now support a better rate, and what the scoring engine checks before flagging them.
Not Yet Ready
Why some auto loans should be monitored rather than contacted: negative equity, at-market APR and loan age outside the 24-48 month conversion window.
How is vehicle equity calculated?
Equity = estimated market value − estimated payoff balance. Equity % = equity ÷ estimated market value × 100. Market value is derived from a depreciation curve and payoff balance from the loan's amortization schedule, so both move every month and every lead is re-scored against the current figures.
How is the lead score calculated?
The 0-100 lead score is a weighted blend of equity (40%), APR spread versus market average (25%), loan age with a 24-48 month sweet spot (20%) and credit tier (15%).
What makes a lead "hot"?
A lead is flagged Hot when equity is at or above $3,000 AND either the APR is above the configured market average (7.5%) or the borrower is prime with 36+ months on the loan.
Frequently asked questions
- What is auto equity lead generation?
- Auto equity lead generation is the practice of scanning a portfolio of vehicle owners to find those whose vehicle is worth more than their remaining loan balance, then targeting them with a trade-in, refinance or rate-improvement offer.
- How is vehicle equity calculated?
- Equity = estimated market value − estimated payoff balance. Equity % = equity ÷ estimated market value × 100. Market value comes from a depreciation curve and payoff balance from the loan's amortization schedule, so both change every month.
- What makes a lead 'hot'?
- A lead is flagged Hot when equity is at or above $3,000 AND either the APR is above the configured market average (7.5%) or the borrower is prime with 36+ months on the loan.
- How is the lead score calculated?
- The 0-100 lead score is a weighted blend of equity (40%), APR spread versus market average (25%), loan age with a 24-48 month sweet spot (20%) and credit tier (15%).