How Lenders Can Get the Lion’s Share of their Dealers’ Loans
What’s the number one way for a lender to add value for their dealer partners? Faster funding.
In today’s automotive marketplace where profit margins are crunched and sales have plateaued, auto dealers are looking for ways to free up cash flow and preserve their bottom line. Naturally, they prefer to work with lender partners who can be part of the solution.
Building stronger dealer relationships
According to recent industry figures, around 85% of all automobile purchases are financed. Dealers rely on the cash flow from these deals to keep their inventory numbers up so they can continue selling cars. Lender partners that are fastest to fund help keep this cash from “floating” on their dealers’ books and free it up to keep the dealership running smoothly.
Supporting both paths: paper and digital
eContracting is slowly gaining ground with more progressive dealers, but the majority of dealers still rely on paper contracts and must overnight their funding packages to lenders. Lenders that can process contracts and fund dealers the very next day – regardless whether the contracts are digital or paper – have a decided advantage.
There are several common obstacles that make it difficult for lenders to achieve consistent next-day funding speed with paper contracts, including speed of data entry, resource gaps during peak volume times, and the inability to increase speed without comprising accuracy.
Available technology solutions can address all of these obstacles and allow lenders to confidently provide consistent funding speed for their dealer partners.
Ready to optimize your paper contracting operations and add value to your dealer relationships? Download our eGuide today!
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