ATLANTA —700 Credit and Equifax have partnered to offer “Income and Employment Verifications-Powered by Equifax,” a solution for auto dealers designed to resolve "stips" raised by potential financing lenders. The solution is provided by the Equifax Workforce Solutions business unit.
Being able to verify income and employment information at the dealership improves the consumer experience by making the transaction process more seamless with fewer roadblocks to financing, officials said. In turn, dealers can quickly close more sales with confidence, and without the need to send customers away to collect proof of documentation.
"Too often, when buyers leave the showroom intending to return with pay stubs to fulfill lender stipulations — they don't return," says Ken Hill, managing director of 700 Credit. "With Income and Employment Verification, dealers can fulfill many of those 'stips' instantly while the buyer is still in the store and excited about driving away in their new car.”
And according to Equifax research, almost 25% of borrowers inflate their stated income on car loan applications by 15% or more — leading to increased possibility of charge offs and delinquencies.
"Knowing a consumer's exact income helps determine their eligibility for financing," Hill added. "A dealership's F&I Manager can work with the buyer to come up with the appropriate terms and conditions of a loan that meet lender guidelines and fit the buyer's budget. This will get the final deal signed while the customer is in the store, and ultimately increase customer satisfaction."
Michael Kuentz, senior vice president of Equifax Verification Services, added: "Income and Employment Verification pulls from our national database of more than 55 million employment records and greatly reduces the potential pitfalls from misstated income. This serves the dealer and lender by expediting the sale and gives the buyer a better, more confident experience at the showroom."