Here’s another example of data and research leading directly to development of a solution aimed at smoothing out underwriting, which in turn helps finance companies book more paper and dealerships turn more metal.
Dealer Marketing Services, the makers of ProMax, recently released what the company dubbed Multi-Bureau Solution for its dealer customers.
ProMax explained the Multi-Bureau Solution is a multifaceted strategy for dealers that centers around pulling multiple credit reports for each customer in order to leverage the best credit score and tier into a better and more profitable deal.
The Multi-Bureau Solution comes as a result of a massive study conducted by ProMax over a six-month period in 2017. Using a sample of more than 700 franchised and independent dealerships nationwide, more than 650,000 showroom visitors with more than 1 million credit bureau reports pulled, and over 180,000 vehicle sales were analyzed.
“The analysis of this massive data set was conclusive and unmistakable,” ProMax founder and chief executive officer John Palmer said.
“Pulling multiple credit reports per customer increases both the number of sales and back-end profits,” he said. “It’s that simple. So, we designed an easy to implement solution incorporating everything the study showed us.”
Palmer explained that the study yielded two big innovations in the credit pulling process that are key to the Multi-Bureau Solution: a brand new multi-bureau credit report and major additions to ProMax’s Lender, Review, & Submit functionality.
The new bureau design improves both the look and effectiveness of traditional credit report displays, enabling dealers to compare multiple bureaus side-by-side and get all the information they need at a glance.
The updated Review & Submit screen makes it easier than ever for dealers to configure lenders for maximum effectiveness.
“The Multi-Bureau Solution doesn’t just draw on the landmark six-month study, but on ProMax’s 20-plus years of experience,” ProMax chief technology officer Darian Miller said.
“Credit and compliance have always been two of our greatest strengths. ProMax gives dealers the technology to compare and analyze credit reports and submit the best deals to lenders,” Miller continued.
ProMax pointed to studies that show up to 75 percent of vehicle buyers have credit scores that vary by more than 20 points across all three bureaus. The Multi-Bureau Solution can take advantage of this situation by always finding the best score and tier for the customer.
“Savvy F&I managers know that pulling more than one bureau can bump a prospect’s score and more importantly their tier,” ProMax chief operating officer Shane Born said.
“Even a bump of 20 points can mean the difference between closing the deal or losing the deal; 20 points could be the difference between a better deal or leaving gross profit on the table,” Born concluded.