The auto finance industry is expected to expand within the next few years, especially now that most dealers, lenders, and car buyers prefer electronic contracting solutions. eContracting is a process that entails formatting, negotiating, and finalizing contracts electronically. It has been embraced by auto finance companies worldwide, and this doesn’t come as a surprise.
With the many benefits of eContracting, these organizations stand a chance of attracting more clients, making more profits, and growing gradually. It’s also an excellent way to combat declining auto sales in the Covid-19 era and the future. Are you wondering how this is possible?
Here’s how eContracting auto finance will increase sales in the automotive industry.
- Offering Convenience for Car Buyers
By providing ultimate convenience for vehicle buyers, eContracting auto finance is bound to curb the declining car sales issue recorded in the U.S. in 2019 and 2020, as per information from the New York Times. Despite the Covid-19 pandemic and the soaring auto prices, car buyers will still purchase their dream cars because they can access the required finances through electronic contracting.
This is primarily because eContracting auto finance is done online. People don’t need to leave their homes’ comfort to sign, negotiate, or finalize auto loan contracts. Nowadays, there’s a new and more efficient way of acquiring consumer signatures using the eOriginal SmartSign. The eSignature application caters to the individual needs of a customer, enabling them to do the following.
- Minimize operating costs.
- Acquire auto finances faster.
- Enjoy a more satiating customer experience.
Since this application can be accessed by mobile devices or tablets, it is ideal for all car buyers, no matter where they are.
- Eliminating Mistakes or Omissions
eContracting auto finance will also combat declining auto sales because, with it, there are no errors or omissions to be made by auto finance companies, dealers, or aspiring car owners. The process of applying for an auto loan can be tedious for all parties involved. When you are doing it physically, you could easily make mistakes that might cost you the vehicle financing or omit crucial details, leading to rejection from your lender.
Electronic contracting uses state-of-the-art technology that allows applicants and lenders to accurately calculate the pricing options and research all the necessary information. This means that nothing is omitted, and reckless mistakes are not made during the procedure.
When a car buyer knows that they are getting fair deals when applying for auto loans, and all their details are verified, they will be more motivated to borrow money to buy the car they have always wanted.
- Saving Time and Money
As you already know, applying for auto financing and getting the loan approved can be time-consuming for the parties involved, especially when you are doing it offline. You’ll also end up spending some bucks by the time you’re done. If you have other work-related or personal issues to take care of, you might even quit when you’re halfway done with the process.
eContracting auto finance provides a better and different experience because it saves time and money, encouraging potential car buyers and dealers to consider it. For instance, dealers do not have to spend their cash mailing the lenders the required loan documents. Car buyers don’t have to show up at the lender’s or dealer’s premises to track progress because they can do all that online.
In 2019, Dealertrack revealed that the use of eContracting by dealerships had increased by 80% since 2015, and it is partly because it saves time and money. That percentage is expected to grow in the future because it helps in combating the problem of reduced car sales that has been worrying dealerships nationwide.
- Guaranteeing Maximum Customer Satisfaction
Customer satisfaction is every dealership’s primary goal, and car buyers crave it more than many other things. eContracting auto finance guarantees that. According to F&I and Showroom, half of the time vehicle buyers spend at dealerships is to negotiate the contract or complete the paperwork, which is way longer than anticipated. This leads to a 49% satisfaction rate, meaning that a considerable number of these buyers go home displeased.
With electronic contracting, customer dissatisfaction is unlikely because the paperwork and negotiations are done electronically and completed quickly. When one customer is happy, they might come back and even invite their friends to consider eContracting auto finance, resulting in more car sales.
Final Thoughts
Evidently, eContracting auto finance could be precisely what dealerships need to maximize their sales as the nation grapples with the frustrating effects of the Covid-19 pandemic. Car buyers who meet the lenders’ requirements can own cars sooner than expected, and it’s all because of electronic contracting. The solution has worked for countless car buyers, and it continues to draw more due to its efficiency. With it, lenders and buyers don’t have to deal with mistakes or omissions. Additionally, it saves time, plus the customers’ needs are fully met.
