Dealer Credit Report Software: Risk Management with Carsinia and CredCo

If you have any doubts about whether you should check credit when selling a car, you can clear them. You should always pull the credit report for a customer you intend to sell a car. There are 3 main ways you might be selling a car: in house lease or loan, external lease or loan and cash deals.

For cash deals you might think you do not need a credit report but you should check OFAC lists. OFAC stands for Office of Foreign Assets Control. Their job is to stop money laundering that support enemies of the state. As a dealer you must report all cash deals above $10,000 as well as any buyers you find suspicious with a SAR. You may get into a lot of trouble if you sell a vehicle to a terrorist and help with money laundering. CredCo credit reports obtained through our DMS can show you whether your buyer is in OFAC lists and help you stay out of trouble.

If you are selling a car with a loan from a bank, you may think that a credit report is not going to help you. A lot of people still go about buying a car expecting that the dealer is going to help them with the loans. You can make extra profit here with loan mark ups. In order to determine which banks would be the best fit for your client, you need to check the credit report. Some banks work with sub prime and some work in the prime areas. You should help your customers by checking their credit and applying to the right lenders.

If you do in house financing (also known as BHPH - Buy Here Pay Here) it is simply crazy not to check the credit score of the customer. For all you know, this may be the last time you see that person. The personal judgement is always going to help when selling cars and setting rates but you must check the credit report. In this case, you would want to see every little detail about your customer. Can they be lying about their identity? Are there any red flags? CredCo reports provided through our DMS can give you a lot of detail that will help with your lending decisions.

If you are still not convinced, think of it this way. At the very least, you will be out a few bucks but it may save you thousands. You really cannot be too careful. See our Credit Reports Page for more details.

Online Dealer Software by Carsinia