When it comes to car buying, you likely remember the experience – whether it was very good or very bad. 54% of customers prefer a positive dealership experience over the lowest price that they’re offered. This is all the more important considering the financial situation of consumers. Current auto industry trends show that the total outstanding balances for auto loans and leases have reached $1.7 trillion, which is 2.3% higher than last year. Of this, auto loans and leases mark 35.9% of this sum total.
With consumer debt ballooning, so are auto delinquencies. Auto delinquencies are classified as any payment past due for over 60 days. As of November 2024, 1.5% of all auto loans and leases are considered delinquent. However, when synthetic IDs (Syn IDs) are introduced, things get much more complicated.
Applicants who utilize a Syn ID have a much higher delinquency rate, between 3 and 5 times more. On top of that, the fraud via Syn ID has equated to around $7.9 billion in losses. So how do you protect against it? Companies like Equifax offer cutting-edge technology to get to know your prospective applicants better. With buying power insights and other financial metrics, you can stop fraud in your dealership before it happens. Regardless of what kind of dealership you are in, Equifax is the perfect tool to deter fraud in your finance agreements.
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