New Product From Experian Shedding Light On Damaged Vehicles
Experian Automotive, a division of the credit rating firm, is offering a new product to lenders. The AutoCheck Market Review product provides improved research assistance for companies originating car loans by combining the AutoCheck vehicle history tool with AutoCount, a resource that gives background on market context.
The AutoCheck Market Review tool, Experian feels, will help a lender defend its loans against liability from previously damaged vehicles. Experian estimates that 20 million used vehicles are financed every year and that about 7% of them have some sort of title issue, such as a salvage title or prior damage. The new tool will help lenders ”adjust lending programs, mitigating potential losses.” Lenders will most likely do this in two ways: by avoiding loans in sectors where bad title loans predominate and by pricing up the loans that they are still willing to make.
Experian does not have anything in the works to help borrowers to get relief from lending up-pricing. The market research tools only have lenders in mind, ignoring the customer who may actually default on a loan if the repairs become too burdensome. The only defense a buyer may have is to demand a vehicle history report before purchasing. Your only other possible defense is to shop around for the best interest rate. Remember, everything in the car buying equation is a negotiation.