Dealers can now verify customers’ income and employment through dealer service finance platforms they may already be using in their stores, Equifax said Dec. 15.
Equifax this month launched The Automated Income Check solution powered by The Work Number, a database of income and employment information provided by employers, on dealer service finance platforms. Equifax cannot say yet which service providers it is working with. Previously, dealers accessed The Work Number directly through Equifax.
About a quarter of auto loan applicants overstate their income by more than 15 percent, according to Equifax. About 15 percent of applicants overstate income by 50 percent or more.
But some customers sell themselves short, too. About 20 percent understate their income by 10 percent or more, Equifax says.
“It’s critical to understand a buyer’s financial capacity early in the sale, and dealers can now instantly verify a customer’s income and employment data,” Bill Thompson, automotive vertical leader at Equifax, said in a statement. “This allows [dealers] to confidently offer financing options to their customer, and ultimately provide their lending partners with higher quality financing opportunities.”
Dealers can also use The Work Number to verify job tenure. Consumers whose job tenure is one year or less are almost twice as likely to be delinquent on their auto loans as consumers whose tenure is 10 years or more, according to Equifax.
Thompson said, “With these tools in hand, dealers can build strong customer relationships and more profitable partnerships with their lenders.”