iVendi: subprime myth about online motor finance not true
The majority of online motor finance applications are not made by subprime borrowers, figures by e-commerce technology provider iVendi have revealed.
Analysis of users of the company’s Car Finance Checker, a tool used by clients to check their eligibility for credit, showed that more than four out of five are financeable by each dealer’s panel of lenders.
Additionally, only a small proportion of Equifax Risk Navigator scores on the system fell below the 200 benchmark, classifying those clients as subprime.
James Tew, chief executive officer at iVendi, said: “We have been working in the area of online motor finance for several years and one of the repeated objections that we have heard is that it attracts a disproportionate number of subprime borrowers.
“However, these new figures, covering the thousands of people who have used Car Finance Checker, show the opposite is true. This is a quality field of potential borrowers. They are financeable people who are serious about buying a car.”
Other figures obtained through the analysis showed that individual users prequalify themselves for finance an average of 1.6 times and the ratio between male and female was 2:1.