Why Auto Dealers Should Consider Digitizing Their Existing Financing Process?

By Ernest Hamilton , Updated Dec 04, 2020 11:12 AM EST
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Why Auto Dealers Should Consider Digitizing Their Existing Financing Process?
(Photo: Why Auto Dealers Should Consider Digitizing Their Existing Financing Process?)

The rise of technology has introduced consumers to a new era of digital advancements and easier trade processes in the world of business. You can even eliminate the daily task of emptying the shred bin! This new world of machines has brought great benefits to help companies establish simple operations that are less time consuming and more efficient. Some of these technologies include:

  • Electronic devices for signing contracts and applications

  • Machines for taking payments

  • Kiosks

  • POS Systems

  • Integration of mobile tablets

Auto dealers come to mind when I think about who could benefit the most from digital technology in today's economy. When you go into a car dealership, you're usually approached by a well-dressed gentleman who inquires about your vehicle preference and provides recommendations.

Did you notice that the representative has documents in his hand? Do you really like reading through long documents and searching for something to write with when trying to get to the car of your dreams? Wouldn't you rather sign your financing agreements using a simple digital device? Did you know that there is a new way of signing using an electronic signature?

Representatives at auto dealerships can now offer customers a legal way of signing documents using e-signature applications. Signing digitally is much faster than working with paper documents and it creates a better client experience overall. Imagine eliminating the fear of losing important documentation because of the day's workload.

There are five benefits of digitizing the financial process in an auto dealership.

It eliminates paperwork.

Filing paperwork can cause clutter at the office. Imagine filing documents for hundreds of customers a day, only to throw it all away when company policy calls for it. That's a hassle that can certainly be avoided when companies incorporate digital technology into their business practices. How about the constant walking back and forth to file documents after each customer leaves the parking lot? That's a ton of strain on the legs. You're already walking a huge car lot all day.

Most companies have procedures in place that require representatives to follow a strict document filing protocol. When dealers have to run back and forth between the lot and office, it becomes time-consuming. People have jobs to work, families to love, errands to run, and lives to enjoy.

Cuts costs.

Paper is cheap in general, but what if a company had to purchase several hundreds of dollars in paper on a daily basis? I would not be surprised to see a high bill for an auto dealership's finance report on printer paper. The monthly cost would probably be devastating. That is why digital technology is so important. A company could purchase a set amount of devices for its employees on a one-time basis. This will cut costs dramatically. Most times, these electronic devices can be used for years with occasional updates.

But you may ask? What if a device is broken? I would suggest checking the warranty with the company that produces the merchandise so that you understand the process of replacing your products.

A better customer experience.

The customer comes first! When you come to purchase a car, you're hoping to leave the lot immediately with a nice vehicle. It is best for auto dealers to shorten the sales process as much as possible. Customers should receive a red carpet experience. Treat them like royalty by presenting them with digital products that keep them engaged and allows more opportunity for dealers to focus on building rapport and getting them exactly what they want.

Easy read.

Signing documents on a digital device create a pleasant experience for customers. Not only is it easier to read, but it's more fun to read and lets customers interact. Companies that allow customers the chance to be involved in sales may earn more revenue.

Most technology nowadays offers zoom features or implements font and text styles that are simple and large enough to understand.

Looks professional.

A professional process is critical for any business seeking longevity in the industry. Envision a client walking up to a representative who has a tablet in hand ready to sign them up for their favorite car. In general, the seller will automatically look more believable, which in turn increases the chance of closing a sale. Would you rather buy from a representative with an electronic device in hand ready to assist you or someone that has a 10-page document for you to read and sign? The answer is obvious! Technology is simply more attractive.

Technology is at the forefront of any successful business. It helps to eliminate paperwork, cut costs, create an engaging customer experience, establish a professional atmosphere, and develop an overall easier interaction experience.

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