The Impact of Vehicle Title Brands on Loan Performance
04/29/2011
Tags: Automotive, Automotive, Customer Acquisition
Significantly higher percentages of title-branded vehicles are financed at Buy Here Pay Here lots, and sold to credit challenged customers. Leveraging the information within vehicle history reports, lenders can identify title-branded vehicles when the loan is made, and mitigate losses.
Description
Vehicle history can have a major impact on loan performance. Significantly higher percentages of title-branded vehicles are financed at Buy Here Pay Here lots, and sold to credit challenged customers. Title-branded vehicles also have a higher percentage of charge-offs for lending institutions. Leveraging the information within vehicle history reports, lenders can identify title-branded vehicles when the loan is made, and mitigate losses from charge-offs and from loss of value when sending repossessed vehicles to auction