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The AutoCheck FREE Flood Risk Check site has been updated with data from Kentucky, Colorado, Texas, and Missouri floods New cars continue to be in short supply due to the microchip shortage, so consumers quickly turned their attention to used cars. Unfortunately, dealers continue to struggle with obtaining enough used car inventory to meet demand. To add to an already challenging time, Mother Nature has brought record flooding in multiple areas of the United States. It’s more important than ever that dealers be careful about obtaining pre-owned cars that could potentially have flood damage. The best way to mitigate the risk of purchasing a flood damaged vehicle is to start by running an AutoCheck Free Flood Risk Check. Visitors simply enter any vehicle's 17-digit VIN and the tool will check for flood brands and provide information if the vehicle was registered in a region impacted by a FEMA disaster declaration. Two levels of reporting available The first level of reporting determines whether the vehicle has been titled/registered 12 months prior in a county that has been identified as requiring public and individual assistance (FEMA categories A and B) for a FEMA-declared major disaster. This would yield a “Yes” result. For instance, you would get a “Yes” result if the vehicle was registered in an impacted area during the time of a FEMA-declared major Hurricane disaster. The “Yes” result should not be interpreted as confirmation of flood damage or even possible flood damage. The data is provided merely as information regarding the location of the vehicle’s registration/title history so users can be aware of risk exposure. For example, the Hurricane Ida region had thousands of damaged cars, but some cars in the region may not have been damaged by the hurricane — the owner could have driven the car when they evacuated, or a child or other family member may have been out of town with the car when the hurricane hit. The second level of reporting is based on search results from Experian data such as flood title and problem records, including flood State title brands, auction flood announcements, salvage auction flood designations, and other vehicle records determined by Experian to relate to or suggest an increased likelihood of flood damage or risk exposure. It takes time for claims and updates to vehicle title information to appear on a vehicle’s history and although the DMV requires that title brands be issued for vehicles damaged by floods, not every vehicle flood event is reported by car owners. Unreported flood events may not appear on an AutoCheck Flood Risk Check or AutoCheck Vehicle History Report. Although Experian provides flood related records from available data sources, we cannot provide assurance that an AutoCheck Flood Risk Check that does not produce any records means that the subject vehicle has not experienced flood damage. That’s why it’s important to review a full AutoCheck Vehicle History Report, which—in addition to potential flood damage—includes reported accidents, branded titles, recalls, number of owners and more. Once you run the full Vehicle History Report we recommend an independent evaluation and inspection of the vehicle to determine and confirm a vehicle’s condition prior to purchase. Try the AutoCheck Flood Risk Check today to help mitigate the risk of purchasing flood damaged vehicles. Not an AutoCheck subscriber?  Contact us to become an AutoCheck client.

When consumers are looking to get a vehicle, their credit score can play an important role in the amount of interest they pay every month. In fact, credit tiers—among other factors—can typically result in a notable difference as it pertains to the average interest loan rate for new and used vehicles. According to Experian’s State of the Automotive Finance Market Report: Q2 2022, the average new vehicle interest loan rate for consumers with a credit score between 501 and 600, also referred to as subprime, was 9.75%—compared to prime consumers with a credit score between 661 and 780, who had an average new vehicle interest loan rate of 4.03% this quarter. On the used side, the average interest loan rate for subprime consumers in Q2 2022 was 16.85%, while the average interest loan rate for prime consumers was 5.53% in the same time frame. The good news is that it seems consumers are actively managing and prioritizing their credit, which has resulted in the overall consumer credit scores shifting more prime. In Q2 2022, the average credit score for new vehicles increased to 738, up from 732 in Q2 2021 and the average credit score for used vehicles went from 666 to 675 in the same time frame. As consumers search for the most budget-friendly option, it is important for them to understand how their credit score can affect monthly vehicle payments. Thankfully, recent innovations have enabled new ways for lenders and dealers to help educate consumers about tools that can potentially increase their score or establish a credit file if they don’t have one. For instance, Experian Boost and Experian Go are designed to do both of these things—creating free resources to help paint a more holistic picture of a consumer’s financial health and potentially qualify for better loan terms. Vehicle finance options based on credit tiers While overall average monthly payments for new and used vehicles continue to increase, there’s still an opportunity for consumers to lower their average monthly payment based on the credit tier in which they fall. For example, the overall average monthly payment for new vehicles in Q2 2022 was $667, from $582 the previous year—though, the average monthly payment for a new vehicle in the prime tier was $673 this quarter, compared to $692 for subprime consumers. Taking a deeper dive into other financing options—the overall average monthly payment for used vehicles went from $440 in Q2 2021 to $515 in Q2 2022. Meanwhile, prime consumers had an average monthly payment of $508 for a used vehicle and subprime consumers had an average monthly payment of $531 this quarter. Building and maintaining a good credit score can have a positive impact when consumers are looking for vehicles that fit within their budget—making it important for lenders and dealers to understand all of the options available to help consumers ensure they find the best approach that caters to their financial needs. To learn more about credit tiers and other automotive finance trends, watch the entire State of the Automotive Finance Market Report: Q2 2022 presentation on demand.

The preference for digital is here to stay, with consumers reporting that they are online 25% more today than a year ago. The explosive growth in remote work and e-commerce results in more transactions, and opportunities for online fraud are occurring. This new reality means that organizations of all types will face more and newer types of fraud risks. External fraud generally results from deceptive activity intended to produce financial gain that is carried out by an individual, a group of people or an entire organization. Fraudsters may prey on any organization or individual, regardless of the size or nature of their activities. The tactics used are becoming increasingly sophisticated, requiring a multilayered defense strategy. Fraud mitigation involves using tools to reduce the frequency or severity of these risks, ultimately protecting the bottom line and the future of the organization. Fraud impacts the bottom line and so much more According to the Federal Trade Commission, consumers reported losing more than $5.8 billion to fraud in 2021, a 70% increase over 2020. Another report places the losses much higher, with credit card fraud alone representing an estimated $9.3 billion. These costs extend beyond the face value of the theft to include fees and interest incurred, fines and legal fees, labor and investigation costs and external recovery expenses. Aside from dollar losses and direct costs, fraud can also pose legal risks that lead to fines and other legal actions and diminish credibility with regulators. Word of deceptive activities can also create risk for the brand and reputation. These factors can, in turn, result in a loss of market confidence, making it difficult to retain clients and engage new business. Leveraging fraud mitigation best practices As the future unfolds, three things are fairly certain: 1) The future is likely to bring more technological advances and, thereby, new ways of working and creating. 2) Fraudsters will continue to look for ways to exploit those opportunities. 3) The future is here, today. Organizations that want to remain competitive in the digital economy should make fraud mitigation and prevention an integral part of their operational strategy. Assess the risk environment While enhancing revenue opportunities, the global digital economy has increased the complexity of risk management. Be aware of situations that require people to enforce fraud risk policies. While informed, experienced people are powerful resources, it is important to automate routine decisions where you can and leverage people on the most challenging cases. It is also critical to consider that not every fraud risk aligns directly to losses. Consider touchpoints where information can be exposed that will later be used to commit fraud. Information that crooks attempt to glean from idle chatter during a customer service call can be a source of unexpected vulnerability. These activities can benefit from greater transparency and automated oversight. Create a tactical plan to prevent and handle fraud Leverage analytics wherever possible to streamline decisions and choose the right level of friction that’s appropriate for the risk, and palatable for good customers. Consumers and small businesses have come to expect a customized and frictionless experience. Employee productivity, and ultimately revenue growth, requires the ability to operate with speed and informed confidence. A viable fraud mitigation strategy should incorporate these goals seamlessly with operational objectives. If not, prevention and mitigation controls may be sidelined to get legitimate business done, creating inroads for fraudsters. Look for a partner who can apply the right friction to situations depending on your risk appetite and use existing data (including your internal data and their own data resources) to better identify individual consumers. This identification process can actually smooth the way for known consumers while providing the right protection against fraudsters and giving consumers who are new to your organization a sense of safety and security when logging in for the first time. It's equally important that everyone in your organization is working together to prevent fraud. Establish and document best practices and controls, beginning with fostering a workplace culture in which fraud mitigation is part of everyone's job. Empower and train all staff to identify and report suspicious activity and ensure they know how to raise concerns. Consider implementing ways to encourage open and swift communication, such as anonymous or confidential reporting channels. Stay vigilant and tap into resources for managing risks It is likely impossible to think of every threat your organization might face. Instead, think of fraud mitigation as an ongoing process to identify and isolate any suspected fraud fast — before the activity can develop into a major threat to the bottom line — and manage any fallout. Incorporating technology and robust data collection can fortify governance best practices. Technology can also help you perform the due diligence faster, ensuring compliance with Know Your Customer (KYC) and other regulations. As necessary, work with risk assessment consultants to get an objective, experienced view.  Learn more about fraud mitigation and fraud prevention services. Learn more