Experian Study Finds Vehicle History Has Major Impact on Loan Performance

A recent Experian Automotive credit trends study revealed that vehicle history can have a major impact on loan performance. The study found that more than 2 percent of the late-model used vehicles (model year 2005 and newer) had a negative vehicle history event (frame damage, salvage, odometer rollback, etc.), which can significantly impact the vehicle’s value.

The study also showed that while these instances occur across all credit segments, more than 3 percent of financing outside of prime had negative vehicle history.

Vehicles with a negative history event also referred to as “brand”, also have a higher percentage of charge-offs for lending institutions. By leveraging information within vehicle history reports, lenders can identify branded vehicles when the loan is made and mitigate losses from charge-offs and from loss of value when sending repossessed vehicles to auction.

Photo: Shutterstock

Experian Blog

Experian is the leading global information services company, providing data and analytical tools to clients in more than 90 countries. This news blog provides our perspective on issues and trends affecting our businesses and our constituents in North America, while occasionally touching on Experian global news. Learn more.

Subscribe by Email:

Delivered by FeedBurner



Latest Tweets