Car dealership customers will be able to look at financing options without affecting their credit score due to a new partnership between Experian and Codeweavers.
Dealers and lenders using the Codeweavers platform will be able to see what lending the customer would be pre-approved for – or a percentage likelihood of them being accepted – along with the real rate that will be offered.
Eligibility gives dealers and lenders the ability to identify customers that are likely to be accepted earlier in the journey, Experian said, removing applications that would later be declined, saving time and costs, and helping boost conversion and acceptance rates.
For customers, they have a ‘clearer picture’ of the financing options available to them – without it affecting their credit score – giving them the confidence to go ahead with their purchase, according to Experian.
Gerardo Montoya, head of automotive, Experian UK and Ireland, said: “We are delighted to work with Codeweavers in bringing eligibility to the automotive market.
“We have seen the success eligibility has brought to the personal finance and mortgage market.
“The combination of the Codeweavers’ platform, major lenders in the sector and our technology will mean better outcomes for both dealers, lenders and their customers, heralding a new way for people to secure their new vehicle and providing them with confidence they are getting the best deal available.”
The Finance and Leasing Association (FLA) has said that the consumer car finance market is expected to grow by 19% in 2021 and 22% in 22% following resurgent April trading.
Eligibility will also help dealers in meeting new requirements from the Financial Conduct Authority (FCA), which came into force in January, said Experian.
By using eligibility, dealers will be able to show compliance with the new rules, which bans discretionary commission models linked to the interest rate offered to the customer.
The FCA is set to focus its efforts on clarifying the terms and conditions of finance agreements and making it easier for customers to complain in a new Customer Duty.
Eligibility uses a ‘soft-search’ to calculate what likelihood a customer has of being approved for credit, so there is no impact on their credit score or future credit applications.
The solution can be delivered online or in-dealership.