NADA 100: Three Questions to Ask About eContracting Technology

Few technology solutions solve a pressing retail issue as efficiently and precisely as electronic contracting. Indeed, virtually every aspect of the contract process is improved through this technology, starting with an improved consumer experience, and ending with a streamlined workflow between dealership and lender. eContracting is a simple and elegant answer to the errors and delays that previously slowed the final step in the car buyer’s journey. Today, it’s emerging as a required solution that keeps dealerships competitive and customers satisfied.

If you’re researching electronic contracting solutions, start with these three basic questions:  

1. What do I need to know before implementing the technology? First of all, make sure your electronic contracting solution is based on a SaaS platform – otherwise known as Software as a Service. That will eliminate many of costs and hassles of the technology. It’s also important to consider data integration: common customer data points may prefill the eContract, reducing manual data entry. That saves more time and eliminates errors. Finally, think about important sales flow options, such as the ability to review and sign via mobile device. That can help to create a more comfortable and convenient consumer experience.

2. Will eContracting save my dealership money? It depends on your dealership and the number of your contracts in transit. In fact, that is a great question to ask your service provider, who should be able to provide your dealership with a customized savings assessment. In terms of efficiency, eContracting will reduce time spent processing contracts and obtaining funding. That improves the overall experience, cuts interest expenses, and improves cash flow.

3. How many of my lenders are available? It’s simple: more lenders equals more opportunity to use the technology. That’s why Dealertrack features more than 20 key lenders (banks, credit unions, and captives) across the US, including Ally, Bank of America, Chase, Capital One and more. 

-- Brian Chee