CHICAGO — TransUnion, in partnership with Carfax, has developed a risk assessment model designed to help auto lenders evaluate the potential for future loan delinquency based on the history of the vehicle used as collateral.

The TransUnion Vehicle History Score is designed to predict the credit risk of an auto loan using information collected by Carfax over the operating life of the auto. Using only the Vehicle Identification Number (VIN), Carfax transmits vehicle history data to TransUnion, which uses that information as the basis for its TransUnion Vehicle History Score. The score returns a value of 100 to 999, corresponding to a rank ordering of the propensity for default on a loan.

"The TransUnion Vehicle History Score represents a step-change improvement over traditional asset risk assessment in auto finance, such as wholesale book value, because the model uses Carfax's unparalleled vehicle-specific data in combination with TransUnion's world-class risk modeling expertise," said Jason Laky, vice president of product strategy for TransUnion's financial services business unit.

Because it does not use consumer information, the Vehicle History Score gives an alternative view of risk not readily available to auto lenders today, according to the company. Used in conjunction with traditional risk models, finance organizations can refine their approval and pricing strategies to compete more effectively for originations.


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