Equifax Partners with Byrider, ProMax

Equifax is offering new ways to help companies work with used-car buyers.

One way has been by developing a new scorecard for J.D. Byrider’s corporate-owned stores.  J.D. Byrider used Equifax Ignite to develop a configurable origination risk model that uses traditional credit data, augmented with alternative data sources such as telecom and utility information, to create a more robust profile on buyers.

Gary Harman, Byrider’s chief risk officer, said the new scorecard is a “substantial improvement.”

Carol Lunt, Equifax’s vice president of auto finance sales, said only about 60 percent of subprime consumers have a traditional credit background. The new scorecard takes in data from a wide array of sources, including cell phone payments.

This is a major improvement. While many subprime customers don’t own a home or even a car, they do have a cell phone.

Harman said the scorecard enhances Byrider’s ability to place consumers in cars.

“If I don’t know anything about this person, I’m not going to risk a $14,000 auto contract.,” he said. “This gives us a profile of people we wouldn’t otherwise have a profile of, which makes us comfortable making a loan.

“We’re turning away a decent amount of people. Any scorecard that can help us approve a higher population with the same risk and make it more transparent is going to improve the entire experience for the customer.”

Harman said the scorecard will become available for the company’s franchisees.

Dealer Marketing Services Inc., the makers of ProMax, is using several products and solutions powered by Equifax . Since 2016, ProMax has used the Equifax suite of auto products to generate leads, target in-market shoppers, convert website visitors and service customers into buyers, speed up the sales process, and verify their employment and income.

Last year, the union enabled ProMax’s dealers to convert more than 180,000 online visitors into leads.

Employment verification is one of the most important tools, said Shane Born, chief operating officer of Dealer Marketing Services at ProMax 

ProMax is using The Work Number from Equifax Workforce Solutions, a database that contains employer-provided payroll records, including more than 80 percent of Fortune 500 companies plus a large majority of federal government civilian employers .

The Work Number verifies a customer’s employment and income in real time, saving the need for borrowers to present paystubs and W2’s. The database also helps to instantly clear some bank stipulations.

In the first quarter of 2018 to date, ProMax has used The Work Number to verify income and employment for more than 25 percent of over 40,000 deals.

Born said consumers are often unclear what their income really is, either listing it too high or too low. That skews the risk assessment in either direction.

He said it is better to get information directly from the source.

 

Last modified on Saturday, 05 May 2018 11:08