May 2014 Newsletter ON TRACK WITH CARFAX ® Volume 19 | CARFAX Banking and Insurance Group In The News CARFAX Update Digging Into Data Rise in Subprime Auto Lending Used Vehicle Listing Service Recalls Go Unrepaired CarfaxBIG.com ON TRACK WITH CARFAX CARFAX Banking and Insurance Group Newsletter | CarfaxBIG.com DIGGING INTO DATA IN THE NEWS Subprime auto financing surpassed 7 million loan originations in 2013.1 That was the largest volume of subprime originations since 2007 and capped five straight years of growth.2 Independent auto finance companies delivered the bulk of this growth in 2013. The nation’s tenuous recovery from recession has presented lenders with an opportunity for growth, particularly in the subprime auto market. More Americans are returning to work, leading to more disposable income. However, many are settling for low-wage jobs, putting them into the subprime category of borrowers.3 1. Equifax 2. Equifax 3. Moody’s Analytics CARFAX UPDATE CARFAX has unveiled a unique vehicle listing service that helps consumers find the right car with the right history. Online shoppers visiting Carfax.com can now search for used cars with specific vehicle history details (e.g. no accidents reported to CARFAX, service records, CARFAX 1-Owner, and more) in addition to other criteria like price and location. The CARFAX service gives consumers access to used cars from thousands of dealers, all of which come with free CARFAX Vehicle History Reports™. ASK CARFAX Q: I’m an auto lender. Does CARFAX offer a costeffective product that can help me mitigate my risk? Total Loss Report™ Prepared for BIG Sales & Account Mgmt Account #: 104527 User ID: C496617 June 11, 2012 Reference Number: 152647964 CARFAX has built the most comprehensive vehicle history database ever assembled with more than 12 billion records from over 75,000 data sources. Please be advised that this CARFAX Total Loss Report contains only a portion of the information available on this vehicle. Additional information can be found on the CARFAX Vehicle History Report™ available at www.CarfaxBIG.com. VIN: 1HGCP31F01EA03333 Year/Make/Model: 2005 HONDA ACCORD LX-P Body Style: Sedan 4 DR Engine: 2.4L L4 MPI DOHC 16V Title Brand Check: 3/11/2010 Florida Motor Vehicle Dept. Hollywood, FL Title# 0083470591 Title Brand Reported: RECONSTRUCTED FLOOD DAMAGE 12/14/2010 Florida Motor Vehicle Dept. Hollywood, FL Title# 0083470591 Title Brand Reported: RECONSTRUCTED FLOOD DAMAGE Title Brand Reported: RECONSTRUCTED FLOOD DAMAGE Vehicle declared a total loss. 12/21/2011 Florida Motor Vehicle Dept. Hollywood, FL Title# 0083470591 Total Loss Check: 06/11/2012 Damage Report Frame Damage Check: Nothing reported to CARFAX A: The CARFAX Total Loss Report™ is used by hundreds of auto lenders in their loan underwriting to identify events that significantly impact a vehicle’s value, and thus its loan-to-value ratio. The Total Loss Report includes critical information such as title brands, insurance total loss, structural damage, odometer problems, and estimated current mileage. For more information on how the Total Loss Report can benefit your business, contact CARFAX at 800-789-6232. Last Reported Odometer Reading:* 131,811 on 05/25/2012 Estimated Current Mileage: 132,335 on 06/05/2012 * An odometer problem was detected on 01/09/2012. Odometer readings after this date are potentially unreliable. Please send your questions to [email protected] A recent st udy by CARFAX revealed that 3.5 million used cars were sold with open recalls last year. Manufacturer recalls can affect the safety, performance, and resale value of used cars if they are left unattended. Consumers can check CARFAX to see if an open recall exists from any of the 39 vehicle manufacturers who report recall data to CARFAX. This information is available to the public for free via the CARFAX Recall Check™ at carfax.com/recall. DID YOU KNOW • Pedestrian deaths fell 8.7 percent in the first half of 2013 compared with the first half of 2012. Source: Governors Highway Safety Association, May 2014 • 421,000 Americans were injured in distraction-related accidents last year, an increase of 9 percent. Source: NHTSA • The Los Angeles Police Department recently added a Lamborghini Gallardo to its fleet. Source: AOL Autos • One in six car shoppers skip the test drive when buying a car. Source: DMEautomotive Study, April 2014 “We love CARFAX! Our bank has found CARFAX to be a valuable tool, allowing our loan officers to make better decisions. CARFAX recently helped us avoid refinancing a vehicle listed as JUNK, saving our bank money. Thank you CARFAX.” Jim Rabby President Wiggins Bank Anyone in your organization can receive this newsletter. To have them added to our distribution list, please call us at 800-789-6232 or e-mail us at [email protected].