Gearing up Nonprime Auto Loans with Instant Employment Verification
ATLANTA — Car sales are up; customers are back in the
showroom; and cars are going over the curb. It's fun to be in the car business
again. After quite a few "roll up the sleeve" years, the American car buyer is
falling back in love with new cars and trucks. With intense competition and
rising demand, it's important to keep prospects engaged in the buying process
and moving toward closed deals.
Your customers are excited, ready to take delivery and then
you pull credit and discover your customer has had some blemishes over the last
couple years. They are part of one of many Americans impacted by the recession.
Good news, lenders are back and approving deals, but not without doing some due
diligence and your loan approval comes back with a stipulation. Now you need to
get your customers to provide proof of employment. The would-be customer leaves
to retrieve a pay stub – and is never seen again.
There has to be a way to reduce stipulations, as well as the
time required for loan processing. In fact, there is.
Increasing Profits
Through Instant Employment Verification
Equifax Verification Services provides Spectrum, a platform
that can allow for a single-source, end-to-end employment and income
verification solution. Income and employment verification helps mitigate risk
and enables more informed lending decisions. Interestingly, nearly one quarter
of auto loan applications have inflated stated income by 15 percent or more,
according to Equifax research – and that contributes to twice as many
charge-offs.
Speeding up loan funding means more vehicles sold and
enhanced staff efficiency. Dealers also get paid faster. With direct access to
The Work Number, a database containing more than 54 million payroll records
from more than 3,000 employers nationwide, you can make smarter, quicker
lending decisions.
Now customers won't have to leave the dealership to retrieve
pay stubs and dealers can get their loans funded without having to bring
customers back to the dealership. With simply a Social Security number in hand,
in addition to the applicant's authorization, credit underwriters can easily
access data online with quality, verified income and employment information and
let the customers drive over the curb in their new auto.
If the data is not immediately available, Equifax can
complete the verification on your behalf through a uniform and auditable
process which validates the employer's phone number and provides details of how
the verification was completed.
With access to HR departments at tens of thousands of
employers, the process is speedy and efficient.
For more information on Spectrum, visit
http://www.equifax.com/automotive/en_us.
Jennifer Reid is the senior director of product marketing at
Equifax Automotive Services. Reid joined Equifax Automotive Services from the
auto lending industry where she spent the past six years focused on both the
manufacturer and indirect lending channels. She has more than 13 years of
automotive experience working for both dealerships and automotive finance
companies.
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