Along with highlighting the fruit of its collaboration with Dealer Marketing Services, Equifax also released findings from its latest consumer automotive survey, analyzing automotive shopping and buying behaviors across prime and subprime credit buyers, as well as millennial and Baby Boomer age groups.

Among the key takeaways from the survey, Equifax determined prime and subprime millennials expect to spend the same amount on their vehicles, and subprime millennials say they are more aware of their credit situation compared with subprime Baby Boomers.

The online survey was conducted by Equifax during February and included more than 1,000 participants.

Other findings included:

• Prime millennials (70 percent) and subprime millennials (64 percent) are similarly likely to understand their credit situation.

• However, 78 percent of prime Baby Boomers are aware versus just 53 percent of subprime Boomers.

Equifax suggested these findings might generate an opportunity for dealers and finance companies to empower subprime consumers earlier in the underwriting process through online shopping in regards to their credit risk situation. This educational opportunity may help avoid surprises at the dealership, which can lead to lost sales and lower customer satisfaction.  

The survey also illustrated that subprime millennials expect to spend the same amount on a vehicle — roughly $20,000 — as their prime Millennial counterparts. However, subprime borrowers are less likely to negotiate (25 percent less likely) than prime counterparts.

“Online resources available today have helped millennials become more educated and savvy shoppers along with their Boomer counterparts,” said Rebecca Kritzman, senior director of automotive marketing at Equifax. 

“Even though the Internet has provided many of these educational resources, we believe auto dealers and lenders can play an even bigger role in helping to guide and advise these customers before and during each transaction,” Kritzman continued. “A larger emphasis here can help customers avoid defaults in their loan, thus increasing the number of shoppers that return for repeat purchases in the future.”

Additionally, Equifax found that subprime and prime millennials place a higher value on input from their family and friends when seeking advice on affordability before obtaining a loan versus Boomers. However, subprime millennials (11 percent) are much less likely to rely on banks and credit unions versus prime millennials (25 percent) when seeking input on vehicle affordability.

Considering the number of “underbanked” individuals that fall into this subprime category, Equifax recommended that dealers should again look at this trend as an opportunity to help advise on the realistic price point for purchase, given their overall financial picture, and look at educating influencers as well.

Equifax and ProMax partner to boost online financing capabilities

In light of what the survey data highlighted, Equifax and Dealer Marketing Services are continuing to team up to help dealerships and finance companies.

To empower online auto shoppers with access to their credit scores earlier in the loan process and make their time in the F&I office more efficient and productive, Dealer Marketing Services — the maker of ProMax — are using several auto products and solutions powered by Equifax. Since 2016, ProMax has used the Equifax suite of auto products to generate high quality leads, target the right in-market shoppers, convert website visitors and service customers into buyers, verify employment and income and speed up the overall sales process.

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

Additionally, ProMax uses The Work Number from Equifax Workforce Solutions to improve the consumer experience by verifying borrower employment and income in real time to eliminate the need for borrowers to present physical paystubs and W2s. The Work Number database contains employer-provided payroll records, including more than 80 percent of Fortune 500 companies, plus a majority of federal government civilian employers. Results from the database can also help instantly clear some bank stipulations, leading to quicker funding of contracts.

To date in 2018, ProMax has used The Work Number to verify income and employment for more than 25 percent of more than 40,000 deals.

ProMax offers a full front end software suite to automotive dealers and a strong track record of innovative and award-winning credit solutions. With Equifax, ProMax is able to centralize requests for credit reports, scores, employment and income verifications and more with one partner.

“We’ve had tremendous success offering these Equifax products to dealers and subsequently consumers, too,” said Shane Born, chief operating officer of Dealer Marketing Services. “Generating and qualifying leads is the lifeblood of the auto business, and Equifax’s suite of consumer credit and digital marketing solutions makes the process easier than ever.”

The Work Number database, managed by Equifax, is one of the nation’s largest centralized repository of payroll data. In 2017, Equifax delivered double digit record growth to its database, benefitting operations such as Dealer Marketing Services.

“Consumers expect a better, more personalized shopping experience, and aligning the right vehicle to a consumer’s budget is an important, often overlooked piece,” said Lena Bourgeois, Equifax vice president of the enterprise alliance automotive division.

“ProMax understands this and has taken the necessary steps to ensure they are an early adopter and innovator in the market,” Bourgeois continued. “The process has become so simple that income and employment verification will become an industry norm.”