The process of acquiring an automobile, either buying or leasing a brand new or pre-owned upgrade, has been gradually transforming from a time-consuming, in-person, paper-intensive process to a completely-online process. Already more than 90% of vehicle acquisitions begin with online research, but online capabilities no longer stop there. Now, almost every step of the process can be conducted online—vehicle selection via the dealer’s website, direct or indirect online auto financing, and even vehicle delivery via desktop or mobile device. A vehicle financing transaction that once took hours can now take place in minutes. If you’re not already offering online auto financing, we explain below why that capability is more critical than ever.
#1. Consumers Have Come to Expect an Online Car-Buying Process
There’s no denying that consumers have come to expect and enjoy the nearly-instantaneous nature of online commerce, whether it’s an Amazon order, grocery delivery (home or in-store pickup), auto/home/life insurance, banking, or travel arrangements. When a consumer can research, select, and order a vehicle online, the auto financing process should be just as easy and convenient.
#2. Online Auto Financing Simplifies the Purchasing Process
A major gripe with consumers is the time it takes to purchase a vehicle. Those complaints primarily pertain to the time spent in the dealership and the financing step, which are both paper-intensive and typically consist of back-and-forth negotiations in order to arrive at suitable loan or lease terms.
Online auto financing simplifies the car-buying process in two key ways. First, by allowing consumers to independently obtain a loan or lease in minutes without the hassle of paperwork. With financing in-hand (via their mobile device), they can confidently move forward with the vehicle purchase or lease. Second—through online auto financing integration with the dealer inventory system at the dealership—by making a range of loan or lease offers available to qualified buyers in a fraction of the time of the traditional financing process.
#3. Without Online Auto Financing You’re Missing Opportunities
With a growing number of consumers expecting an online car-buying experience, lenders unable to provide online auto financing services are likely missing a significant number of lending opportunities. In a time when mobile commerce is common and economic uncertainty has decreased car sales and corresponding loans and leases, online auto financing is a vital channel for capturing lending opportunities.
#4. Online Auto Financing Services Provide Benefits for All
Online auto financing services benefit all—consumers, dealers, and lenders. Consumers can more easily and quickly obtain financing anywhere, anytime via mobile devices. And by integrating online auto financing into a contactless sales process, dealers simplify the sales process and deliver the buying experience that consumers expect.
Lenders benefit by making their services available to a wider consumer base. A lending platform that supports online auto financing also reduces operating costs by using automation, auto structuring, machine learning, e-contracts, and e-signatures to eliminate manual underwriting or approval processes and deliver risk-based loan or lease approvals within minutes.
Lenders can build consumer loyalty with online servicing throughout the life of the loan or lease, allowing borrowers to set up automatic payments, review payment history, make on-time payments, determine payoff amounts, and update borrower information. In addition to the ability to eliminate statement printing and mailing, as well as check processing, online auto servicing can also reduce call center workloads and its associated operational costs.
Below is a brief overview of the core benefits all parties can expect to receive from online auto financing:
|Enhanced customer experience||⬤||⬤||⬤|
|Rapid loan or lease decisioning||⬤||⬤||⬤|
|Boost in sales and loan/lease opportunities||⬤||⬤|
|Lower operational costs||⬤|
|Loyalty development for future business||⬤||⬤|
Considering the current economic conditions and consumer expectations, online auto financing capabilities are critical to enhancing the borrower experience throughout the lending cycle, building loyalty, and boosting the opportunity for additional or future loan or lease opportunities.
defi SOLUTIONS offers mobile-enabled online auto financing solutions. defi CONNECT integrates with defi’s end-to-end platform that includes loan and lease originations and servicing. defi CONNECT ORIGINATIONS enables borrowers to shop for financial programs and rates 24/7/365. defi CONNECT DEALER allows dealers to restructure financing deals using real-time borrower and vehicle-specific rates. defi CONNECT SERVICING provides self-service account administration capabilities via mobile devices. If your services aren’t meeting the expectations of today’s consumers, take the first step in realizing the benefits of online auto financing and contact our team today.