Car buyers love financing their cars. In the first quarter of 2021, more than 80% of his vehicles purchased in the US were financed.
This is good news for companies involved in the car buying and financing process, but not everyone is happy.
As consumers incorporate digital technology and online shopping into their everyday purchases, they increasingly expect a seamless Amazon-like experience from auto companies. They don’t want to negotiate or “talk to the manager”. For them, sitting in dealer showrooms and lobbies for hours waiting for loan approvals and paperwork to be ready is a frustrating waste of time.
In a recent Wolters Kluwer industry survey, automotive industry experts acknowledged these struggles. About 74% of respondents said it takes him more than 30 minutes to complete the paper-based fundraising process. Over 60% estimate that a quarter to half of all his transactions are subject to manual errors.
Make a difference with eSignature and eVault solutions
Automotive companies must embrace digital technology and transform processes to deliver customer experiences that attract, satisfy and retain valued consumers.
eContracting solutions help businesses move from manual, face-to-face processes to less-frictional, compliant digital processes. Electronic signature tools enable compliant digital signatures. Electronic vaulting technology allows businesses to store documents in digital storage and share them with retailers, lenders, consumers and businesses in the secondary lending market.
By enabling businesses to remain digital throughout the end-to-end funding process, these advanced technologies enable faster and more accurate loan originations. A simpler, more efficient loan process improves the convenience and overall customer interaction experience. And, not surprisingly, these benefits increase sales.
Auto companies that adopt digital solutions can streamline and improve the car financing process. In a Wolters Kluwer survey, 76% of his respondents said the solution allowed them to complete transactions in just 10-20 minutes. This is a big improvement and will be appreciated by consumers.
overcome hesitation
Unfortunately, most automotive industry leaders have yet to adopt digital finance solutions. Survey findings show that many decision makers say they haven’t found the right solution or are unsure of the value technology can provide.
Most companies that have some digital tools in place are just getting started. Only about a quarter of respondents say more than half of their businesses use this technology.
Even fewer companies have deployed eVault solutions that ensure regulatory compliance and enforceability of digital asset-backed securities. Fewer than half of survey respondents said they use eVault solutions to certify that a digitally signed document is the original, unaltered document.
Start your digital transformation
What can we learn from this data? Some automotive companies may think they have nothing to lose by waiting for digital solutions to be more widely deployed. They couldn’t be more wrong.
As businesses digitalize themselves, the proportion of manual financial and insurance processes will continue to decline. The COVID-19 pandemic has accelerated this change, with consumers expecting auto companies to participate, as well as new, more convenient business models being adopted by the retail and consumer goods industries. In fact, the Wolters Kluwer Auto Finance Digital Transformation Index shows that digital transactions have increased by nearly 80% since the first quarter of 2021.
To rapidly deploy digital solutions with minimal cost and downtime, leading automotive companies are connecting to third-party platforms and cloud services. These technology providers can help automotive companies digitize more processes faster and with more detail. This is especially true for niche players that can only function effectively if they can efficiently share trusted, standardized data and documents with other players in the automotive ecosystem.
A shared digital cloud platform provides a single, secure and tightly controlled environment that companies can use to manage all processes and handoffs during their fundraising journey. Ensure the integrity of all your documents, data and connection points from start to finish.
Digital cloud platforms enable businesses to digitally sign and manage contracts, eliminating paper and the inefficiencies and risks associated with it. Businesses can manage contracts with tight security, control, and speed. You can also increase compliance control and efficiency with reliable and reliable low-touch governance capabilities.
Companies that delay this transition and effectively refuse to add value to their customers risk losing business and being forced out of the market by competitors. In a softening economy where new and used car sales are below expectations, responding to customer interest by offering a fully digital car-buying experience is a smart move and definitely worth celebrating. .