Lies, lies, lies.
I was talking to someone the other day and they asked me a simple question “What is auto lending fraud? Do people actually lie on their auto loan applications?”
It doesn’t seem like something that would actually happen very often right? I mean the person has to go to the car dealership to buy their car, show their identification, and then fill out a mountain of paperwork to get approved for the loan.
$6 Billion Dollars Worth of Lies
How could there possibly be any fraud with so many of these checks along the way? Well, it’s surprisingly very common. Our company believes that there are about $6 billion in auto loans approved each year where someone has lied on the application. And worse yet, it causes the industry big losses. Those loans often default because no payments are even made on them.
I decided to put together a master list of how people lie – whether it is the car buyer themselves or the car dealers.
Here are 35 ways and $8 billion dollars worth of lies that people tell on their auto applications.