A new partnership between automotive software expert Codeweavers and consumer credit reporting company Experian means car buyers have a better view of finance options without their credit score being affected.
In what’s being claimed as a first for the car finance market, eligibility will be available.
Dealers and lenders using Codeweavers will see what lending a customer would be approved for in advance – or a percentage likelihood of them being accepted – along with the real rate that will be offered.
The two companies say that’ll dramatically improve the sales journey for dealers, lenders and potential customers because of unrivalled insight into a potential customer’s suitability for lending,
Customers who are likely to be accepted will be identified much sooner, with applications that would later be declined being removed.
That’ll save costs and time, helping to boost conversion and acceptance rates, as customers are given the confidence to go ahead with buying a car, say the firms.
Andrew Gill, head of lenders’ products at Codeweavers, said: ‘The opportunity to improve the car-buying experience is always advantageous.
‘With this joint solution between Experian and ourselves, we get to improve it for lenders, retailers and their customers within one feature.
‘This feature will help improve efficiencies online and offline and provide better transparency to end customers.’
The initiative will also help dealers meet new commission requirements from the Financial Conduct Authority, which came into force in January.
Thanks to eligibility, dealers will be able to show compliance with the new rules, which ban discretionary commission models linked to the interest rate offered to the customer.
Gerardo Montoya, head of automotive at Experian UK and Ireland, said: ‘We are delighted to work with Codeweavers in bringing eligibility to the automotive market.
‘We have seen the success that 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 dealers, lenders and their customers.
‘This will herald a new way for people to secure their new vehicle and provide them with confidence they are getting the best deal available.’