Instant Employment Verification: Gearing Up Non-prime Auto Loans in a Resurgent Market
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 allows 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 over 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. Credit underwriters can now easily access 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 Equifax Automotive solutions, please visit: http://www.equifax.com/automotive/en_us