Part Three: What is Digital Retailing's Impact on Dealers and Consumers?

Digital Retailing is all about giving the customer what they want – and doing so within a profitable sales and finance model. As the technology has evolved, it is no longer a matter of sacrificing one for the other; the technology is unique in that its true power is in the way it provides value to buyer and seller through transparency, process efficiency, and trust. It’s that kind of power that have made “DR” a lasting and permanent fixture in the world of automotive retail.

If Customers Like Digital Retailing, then Dealers Like it More

In fact, it’s fair to claim that Digital Retailing – albeit still in the early innings - may be one of the most transformational innovations in the automotive space – second only, perhaps, to the age of the internet. Consider: According to our recent survey, 60% of dealers using Digital Retail solutions found that the average profitability of digitally initiated transactions was equal to, or higher than, transactions not initiated via digital retail.

It makes sense: Consumers are willing to pay fair prices for the convenience of an efficient, transparent process, especially when they feel the dealer is being upfront about pricing and trade-in values.  The more customers know, the more comfortable they are. The more comfortable they are, the more likely they are to buy. 

In the current marketplace, customer experience is edging out price and even product quality as the prime differentiator.  In the absence of value, it will always be just about price.    Leading dealers are realizing the pain of not changing is greater than the pain of changing.  They are accepting that they can’t stop the evolution and are instead embracing the change of an increasingly digital and transparent sales process.

Efficiency: Fast is In, F&I Frustration is Out

63% of dealers surveyed report that the F&I time delay is the biggest risk to profits.  Those same dealers saw a decline in customer satisfaction and loyalty. According to JD Power, that’s not surprising: 91% of consumers would consider an instant vehicle loan offer if that mean they could avoid dealing with a bank or doing extra paperwork.

Since more consumers than ever before are pursuing finance options online, it would make sense for dealers to get in on the action and offer qualified finance information on their websites.  

It’s a compelling example of how time delays and efficiency are far and away the biggest issue that dealers face – and why Digital Retailing is so uniquely suited to answer the call. Best of all, while it’s efficient for consumers, this self-serve finance option also enables dealerships to protect and grow finance penetration and deal profitability. 

Transparency Works when Both Sides Get It

It’s simple: two-way transparency is a trust multiplier and deal accelerator. The sooner finance gets involved (online or in-store) the more confident consumers are that a deal can be structured. The information a customer gets prior to visiting the showroom acts as a sweetener to come in and finish the deal – disarming hesitation and sales objections through a realistic picture of finance. And, for dealers, early finance involvement not only increases the likelihood of the deal, it enhances the potential for a profitable deal. 

And, importantly, two-way transparency through the Digital Retail experience increases the speed and quality of the journey from website to showroom and, ultimately, to the final conversation between customer and F&I manager.  In our survey, 62% of dealers report that ‘quoting consumer qualified payment terms online’ is the top opportunity to improve the customers online to in-store transition.

Simply put, dealers are finding that the combination of technology and data enables dealers and customers to come together faster and more thoroughly. It’s a level of transparency that builds trust and moves transactions quickly toward the F&I office. That, in turn, helps to increase F&I product penetration and ensures compliance.   Consumers will pay a premium for an amazing digital retail experience, offering an opportunity to earn gross in a declining margins market.

Trust through Technology

It used to be that a handshake was the best way to make a positive first impression and start knocking down trust barriers.  And while that’s still true, nowadays, the handshake happens online, via technology.  That’s where you interact with your customer for the first time because that’s where they are.  We are all consumers, and we are all users of technology. almost all of us are more comfortable with the device in our pocket than a person we’re meeting for the first time. Digital Retail technology gives sales and finance teams an opportunity to create an active, personalized interaction, that leverages clarity and trust to help the customer buy the car.

At the end of it all, perhaps the reason why Digital Retailing has made such an indelible impact on automotive retail is because of this overriding trust factor. People simply want to know what’s up, and what they can afford. And they don’t want to spend all day buying a car – it’s frustrating and makes them wonder if they’re getting the right information. Those dealerships that provide that service get to create that trust – and do so profitably. That’s the true and lasting impact of Digital Retailing.

In part four of Digital Finance SOS – Is Digital Retailing the Answer? We look at Digital Retailing, Done Right. For a summary of today’s numbers, click here.

Part Two: Why Aren’t Dealers Adopting Digital Retailing?

By now everyone knows about digital retailing. There are enough automotive technology providers hawking their version of “Retail Magic,” it would be hard to miss it.

At its most basic, digital retail technology empowers car buyers to move through the buying journey online and seamlessly transition in to dealership. Meaning dealers are able to pick up where customers left off and finish the transaction without process or information duplication. And, according to our recent survey about digital retailing, almost every dealer agrees with that: 92% say that online retail tools allow customers to move themselves down the funnel, and 72% of dealers agreed that consumers should be able to start and stop parts of the purchase process where they want to online – and expect to pick up where they left off at the dealership. Most even agree that it sounds like a solid plan: 85% of dealers intend to make their website more transactional by adding more digital retailing tools.

What’s the Difference Between Knowing and Actually Understanding Digital Retailing?

Knowing about a technology isn’t the same as understanding what it does or how it works.  There seems to be a fair amount of questioning over the value digital retailing tools are bringing to dealerships. For example, just 66% of dealers surveyed agreed that dealerships who ‘power up’ with technology (e.g. digital retailing tools, etc.) are more easily able to simplify the process to run more volume at higher profits, and benefit F&I Managers.* That’s a big gap between knowing what it does – and wanting to actually use it. It’s frankly an indication that many dealers have serious concerns about adopting the technology, even though it’s increasingly the preferred way to buy a vehicle. For the 12% of dealers who are actually opposed to making their website more transactional, the top reasons cited are:

- #1: Loss of personal customer/dealer interaction

- #2: Loss of control. Online tools ‘unlevel’ the playing field between the dealer and the customer

- #3: Compliance concerns

For the 15% or so of dealers who have some digital retailing tools but have no plans to adopt more, the top barriers cited are:

- #1: Reluctance to change/happy with way things are.

- #2: Cost/Integration of new products from multiple providers can be expensive and vendor cooperation is unlikely.

- #3: Loss of control. Online tools ‘unlevel’ the playing field between the dealer and the customer.

Are dealers slow to evolve? Or have they simply seen too many ‘shiny objects’ come and go?

Either way, the message seems clear: dealers hesitate to adopt digital retailing tools because they fear a lack of control over the transaction.  Most dealers are reluctant to make serious changes to a sales model that has made them financially successful. Understandably, they are comfortable with the traditional way of selling cars - and many managers only know what they learned before online retailing took over.

Truth is, digital retailing does not remove the salesperson, or introduce chaos to the car sale. The objective of DR technologies is to allow consumers to complete parts of the transaction away from the dealership, facilitate the mutual exchange of information and, most importantly, help dealers sell more cars in less time, while also improving profitability and customer satisfaction.   

As great as the technology can be, having the right culture, processes and people in place for what comes after is so much more important.   And because every dealer and transaction are different, a digital retailing plan needs to be flexible enough to best meet the needs of the dealership, their brand and their customers.  As an example, most dealerships will have to make significant changes in order to accommodate the following:  

- Determining the right sequence of steps to move people thru the DR experience without losing them

- An increase in active-buyer lead flow, that requires different word/talk tracks.

- Online to in-store integrations and workflows

- Adopting new measurement criteria for leads, engagement and conversion

- Building a future-oriented sales and management team

• - Ensuring compliance  

According to the survey, the potential of Digital Retailing is compelling to most dealers – but many dealers still believe transparency and profitability are in conflict.  The key to closing that gap is to focus on the consumer experience, not the technology.  Dealers will first need to commit to transparency, then figure out a business model and plan that results in the highest profit from a transparent process.  Vendors can help dealers embrace the change by finding solutions to their workflow challenges.

In part three, of Digital Finance SOS – Is Digital Retailing the Answer? we will look into the impact digital retailing has on dealers and consumers. For a summary of today’s numbers, click here.

Part 1: Is the Strong Preference for Dealership Financing Shifting?

We recently took a deep dive into some key industry numbers around digital retailing (DR), including proprietary data from a survey eLEND conducted earlier this year. Our goal is to assess online auto financing trends, investigate DR’s potential impact on auto finance and understand dealer perceptions and attitudes towards it. 

In part one of this three-part series, we set the stage by asking: Is the Strong Preference for Dealership Finance Shifting?

The numbers tell a story of a marked shift away from dealership financing: According to FICO's 2019 Consumer Survey of Vehicle Financing, most U.S. car buyers (63%) opted for dealer-arranged financing in 2018. BUT, that's down from 73% a year earlier. And, even more concerning, is that for their next purchase, only 40% said dealership financing would be their first choice.

Compounding the shift away from dealership arranged financing, is the growing consumer appetite for online financing options.  The same 2019 FICO study shows the number of consumers acquiring vehicle financing online more than doubled in 2018 to 13%, up from 5% in 2017 – and 28% say online financing will be their first choice next time round.   While dealer-arranged financing continues to be the epicenter for auto loan originations, these trends are, and should be, concerning to dealers.

So, let’s look at why this shift is happening and what can be done about it.

First of all, we need to acknowledge the problem rather than hide from it! It’s not going away. Consumers, and especially millennials, demand control over every single experience - they demand ease, convenience, transparency and instant gratification. Nothing could offer less control and transparency  - and at the same time create more consumer anxiety and skepticism -  than what has been the typically hours-long in-dealership car buying experience.

The data tells the story: satisfaction scores among customers who secured direct financing outside the dealership were 34 points higher than those selecting an indirect financing option offered by the dealership. And, though it may be conventional wisdom to think that an online finance customer can be easily flipped, 43% of dealers in our survey reported that they are unable to flip the majority of pre-financed customers into a dealership financing option.

Acknowledging the three primary reasons that customers are willing to leave the dealership for financing are the first three steps on the road to solving this challenge:

(1) Empowered, convenience-driven consumers want more control over where and with who and how they do business.

(2) New business models and digital finance technologies introduced by lenders and some of the disruptors are attractive to buyers.

(3) Consumers are reporting much higher satisfaction when securing direct financing outside the dealership.

So what can dealers do to confront these trends and preferences? The numbers tell us that it all starts with thinking about what the consumer wants, not what the dealership wants them to do. You know the adage: give the customer what they want, or the competition will.  It’s worth noting that nearly half of U.S. customers consider just one lending source before they make a decision. So if dealers continue to be reluctant to make financing information available on their websites, are they eliminating the opportunity to be part of the consumers short list of financing considerations?

Understanding how consumers prefer to shop for vehicle financing options and adjusting your technology investments is key. Investing in digital retailing solutions to satisfy the 90% of shoppers to complete some of the ‘buying’ steps online is one way dealers are protecting and growing finance penetration.  Think of it like this.  With website based DR tools, transparency becomes a two-way street, forcing the consumer to be more transparent, giving up more of their personal information earlier in the process and shifting the online information advantage back towards the dealer.  

By changing when and how the shopper is introduced to payment information and dealership financing options, the combination of technology and data enable the dealer and the consumer to come together much faster.  The two-way transparency is a trust multiplier.  Deal transparency 1) increases finance penetration; 2) protects and even grows PVR; and 3) the accelerated transaction times directly correlate to a more positive customer experience.

But are dealerships adopting these tools? What are those tools? Are they right for the job? What are the barriers to adoption and what are the results?

In part two, of Digital Finance SOS – Is Digital Retailing the Answer? we will look into dealership adoption of DR. For a summary of today’s numbers, click here.

There probably isn’t a dealer in the US who hasn’t been approached with a dizzying array of shiny objects under the ‘Digital Retailing/Finance Technology’ label, purporting to do anything from solving each friction point in the dealership sales and finance process to putting a man on the moon (well, the last one is not true, but the hyperbole in some digital retailing marketing makes one almost believe it could be).  

The truth is that digital retailing, in its purest form, has the potential to be a very good thing. But, to date, the ‘potential’ has yet to be realized, especially when it comes to digital finance technology.   Yes, pieces of the puzzle are in place, but the complete picture has yet to emerge. And we believe that the complete picture of digital finance technology is not just about an online experience or a payment calculator, it’s about gathering consumer data, vehicle data, lender data, and a deal structure – and aggregating that information to facilitate an accurate and transparent exchange of information, including a realistic payment expectation – that gives customers what they want and that actually protects the dealer’s profits in the deal. 

So, how does a dealer know whether or not to sign with a digital finance technology vendor and if the pieces of the puzzle that vendor offers can help to complete that picture for his/her dealership?  Here are six questions we think every dealer should ask before signing on the dotted line. 

1. Can you put the customer in the right car with the right deal structure matched to the right lender programs rates, terms, payments, advances with a fundable deal?

Okay, that is a mouthful but, think about it, this really is the bottom line for any vendor claiming to offer a complete digital finance technology solution.  If any part of that equation is missing, so is the deal. For example, if the vendor says they can put the right customer in the right car, does that mean the right car that the customer selects?  Yes? Great, but is it joined to the other components such as the right payments? Yes? Great! But when you say right payments, do you mean a ‘vehicle qualified’ payment? Or the right ‘credit qualified’ payment?  Or the right payment matched to your lender programs? Or all of the above? How many pieces of that puzzled can they solve? All of them? Great. Have them demonstrate it to you, and if they are successful, move on to question 2.

2. Are you certified from a security compliance standpoint by the credit repositories? 

Why is this important? Without that compliance certification, the vendor will not have access to critical information that will enable them to access needed data and use logic to match a customer’s qualifications to lenders’ pricing, underwriting, and advance highlights.  If they say no, the conversation is over. If they say yes, ask for evidence of certification, then…move on to question 3. 

3. Do you have access to raw credit report data and the software to parse it out?  

Why is this important?  The vendor needs to have the intuitive software that will enable them to go deeper than just an estimated credit score and, for example, be able to calculate debt to income ratios. For example, if a customer says ‘I want this car, I want this payment’ but their debt to income rate is higher than acceptable lender guidelines, you will not get to a fundable contract.  Debt to Income ratios are included for most lender underwriting rules which require parsing out the raw credit report data to calculate – but 99% of Digital Retailing tools don’t even have access to such data!  However, if you have found the 1% and the answer is yes, move on to question 4.

4. When quoting payments, whether your solution offers a payment calculator or self-help desking tool, does the quote include all applicable taxes – local, county, and state – plus license and registration fees for that jurisdiction, as well as interest rates, money factors and residuals down to the trim level model ID of the vehicles, at each credit tier and monthly term, and then match to the customers qualifications payment quotes to actual lender underwriting and advance guidelines?  

Why is this important? Without this data, you are not calculating the real payment for your customer which creates a disconnect which can lead to friction in the negotiation. Is the answer yes? Great move on to question 5.

5. Do your online payment quotes waterfall to best payment for customer or profit to you from your Lender’s Standard Rates Sheets, Special Incentive Rate Sheets, and Regional Rate Sheets simultaneously? 

Why is this important? There can be more than 500 data points that impact the final terms of a deal. Such as, is the vehicle, new, pre-owned, certified, year of vehicle, same brand as franchise dealer. Each vehicle can have different mileage, term, advance guidelines before you even consider the customer qualifications. 

Other factors such as loan to values (LTV’s) affect whether deals get loan approval or not. Trade-in’s effect LTV’s. Payment to Income ratios can impact available qualified terms such as 84 months for standard programs, but if the amount financed is $1 below the minimum allowed, the max term is 72 months. And for special APR, 84 months may not be allowed.

So, if the answer is yes to questions 1 through 5, then your vendor has achieved the equivalent of putting a man on the moon. More likely, the answer is no to all, or some, of the above. But do not despair!  A final question to ask is:

6. Are you collaborating with, or open to collaborating with, vendors/solutions that fill the gaps in your solution?

If the answer is yes, then you have found a partner who is looking out for the best interests of everybody in the transaction: the consumer, the dealer, the lender, the other supply chain providers – somebody that’s truly helping to evolve digital retailing and make it work. 

The reality is that there are vendors out there who consistently misrepresent their DR/Finance Technology capabilities, ultimately disappointing dealers, dampening the reputation of digital retailing and finance, and setting back critical evolution.   But vendors who are transparent and willing to work with your dealership and other vendors to fulfill the promise of digital retailing are worth their weight in gold and might just be able to help you complete the DR/Finance Technology picture.

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To read Pete's most recent blog, click here: https://www.elendsolutions.com/6-questions-you-must-ask-every-digital-retailing-vendor-quoting-payments/
 

Survey indicates that auto dealers are ready to embrace digital retailing, while highlighting “experience” disconnects: tools providing inaccurate and/or misleading quoted payment terms are key culprit say 87% of dealers

Foothill Ranch, CA – January 23, 2019 - A new report from eLEND Solutions asks the question: Is digital retailing promising more than it can deliver? Although digital retailing, and its many definitions, is being touted as the future of automotive retailing, this survey of auto dealerships indicates that a key hurdle remains: namely, the many standalone digital retailing tools or platforms quoting inaccurate and/or misleading payment information to consumers, which are ultimately creating more skepticism with buyers and expensive rewrites and unwinds for dealers.

According to the report, dealers who adopt digital retailing tools are striving to deliver a frictionless buying experience, including more transparency about the ‘deal’ but, these same surveyed dealers report that basic payment calculator estimator tools are actually getting in the way of their desire to evolve. In fact, an astonishing 87% of dealer respondents agree that it’s common for payment estimator tools to provide inaccurate or unrealistic payment expectations. And it is impacting sales: 74% report that well over a quarter of deals that include digital retailing-provided payment terms have to be rewritten (with 37% reporting that between 51 and 100% have to be redone!) -- and the majority lose over 60% of those sales. 

How strongly do you agree or disagree that it is common (>50%) for a payment estimator tool to provide an inaccurate or unrealistic monthly payment expectation?

-50% Agree

-37% Somewhat Agree

-13% No Opinion / Not Sure

-0% Disagree

-0% Strongly Disagree

“Because most of these tools return unqualified payment quotes - unmatched to the customer’s credit profile, a specific vehicle and, crucially, any of the dealer’s lender programs, they establish an unrealistic payment expectation that leads to an unavoidable conflict and consumer dissatisfaction,” said Pete MacInnis, CEO of eLEND Solutions.

When paired with the recent J.D. Power finding that nearly half of auto loan customers shopped for vehicle financing options before visiting the dealership, it’s clear that dealers are at risk of not only losing consumer confidence but also losing their share of the financing revenues.

Still, dealers report that they are bullish on digital retailing: 67% agree that ‘powering up’ with technology can simplify the process and result in higher profits. And nearly 60% of dealers surveyed who are using digital retailing solutions believe that the average profitability of these deals is equal to, or higher, than non-digital retailing transactions.

“With dealers needing to rework many of these deals, it’s difficult to believe that profits are outweighing the cost of time delays, not to mention the negative impact on customer satisfaction and loyalty,” continued MacInnis. “Digital retailing needs to catch up with both dealer and consumer expectations.”

Although nearly 50% of dealers who aren’t using digital retailing tools say that unrealistic payment expectations hurt F&I profitability, dealers overall indicate that they are willing to embrace F&I transparency and process improvement:  63% say that these is room for improvement when it comes to transitioning online shoppers into the showroom and cite the number one area for improvement as: “matching finance terms to a consumer’s credit profile.”

The report also uncovers some alarming disconnects. For example, nearly 60% of the surveyed dealers say they wait to pull credit until after the deal has been negotiated which causes time delays in the sales process because the deal terms haven’t been qualified or matched to the dealer’s own lender programs before negotiations.

“In order for digital retailing to deliver on its considerable promise, the tools need to start providing realistic, ‘qualified’ payment quotes,” said MacInnis. “The sooner real consumer-qualified finance terms matched with dealers’ lender programs can get involved in the deal, the more profitably they can be structured and the more satisfied consumers will be.”

Key Data Highlights

• 87% of dealer respondents agreed that it’s common for payment estimator tools to provide inaccurate or unrealistic payment expectations.
• 74% of dealers report that nearly 1 in 3 digital retailing-initiated deals that included a non-qualified payment quote have to be rewritten.
• 74% of dealers agreed that, on average, 6 of every 10 deals that have to be re-worked, are unable to be saved.
• Nearly 50% of the dealers who aren’t using digital retailing tools believe that unrealistic payment expectations hurt F&I profitability.
• 60% of the surveyed dealers say they wait to pull credit until after the deal has been negotiated.

eLEND Solutions will be at NADA Booth #6553W January 25th – 27th.

About eLEND Solutions

eLEND Solutions™ (DealerCentric rebranded) is re-platforming from a company specialized in credit solutions to a FinTech SaaS and DaaS company focused on providing a simplified vehicle purchase process for the retail automotive industry. The advantage of their industry neutral credit and finance decisioning solutions is a more efficient, faster-moving Sales and F&I deal-flow that sells more cars at higher profits in less time – benefitting dealers, lenders and consumers.

Contact: 
Media Relations 

Melanie Webber, mWEBB Communications, melanie@mwebbcom.com or (949) 307-1723
Crystal Hartwell, mWEBB Communications, crystal@mwebbcom.com or (714) 987-1016

Enhancement to eLEND’s popular CreditPlus online credit application is designed to accelerate the sales process and create a more positive credit experience that benefits both dealers and consumers 

Foothill Ranch, CA – January 17, 2019 – eLEND Solutions™, specialists in online and in-store credit and finance solutions for auto dealers, today unveiled Showroom Credit Express, a significant enhancement to its popular online credit platform, CreditPlus. Showroom Credit Express offers a suite of digital in-store credit decisioning solutions that give dealers and consumers revolutionary efficiencies, flexibility and control of the credit experience at the dealership.

Showroom Credit Express offers four digital credit options:

(1)   Consumer Portal, for new customers and returning customers who have previously started a credit application online  

(2)   Digital Showroom, a long form application for new customers

(3)   Showroom Quick App, a short form application for new customers

(4)   Cash Buyer Quick App, a short form for cash buyers for OFAC check

All options are web-based and require no platform login - meaning all options are easily accessible via a standalone URL from any screen (desktop, kiosk, mobile device) and all operating systems (Android, iOS and Windows) - allowing consumers to drive themselves through the credit experience at the dealership.       

“‘Time kills deals’ is a dealer adage that remains true. Filling out paper credit applications just to have to key them in moments later to send to the bank is grossly inefficient, not to mention that today’s buyers want to do as much as they can before coming into the dealership,” said Marcus Barnes of Jupiter Chevrolet, Garland, TX. “Standard web forms don’t really cut it because they don’t connect the dots to the store and they don't keep compliance. For these reasons, and more, we’ve made eLEND Solutions new digital showroom applications an integrated part of our buying solution.” 

Unlike other digital credit apps available to dealers, with the Showroom Credit Express Consumer Portal, consumers are able to re-access and finalize a CreditPlus application they may have started online – for example, adding references and banking information required for loan funding. For walk-ins, first-time applicants can access and initiate the process anytime, anywhere – including on their own smartphone – while in the dealership.  All four self-service options give consumers the control and participation in the process they crave – while eliminating the unengaged wait time they dislike. In addition, process bottlenecks and inefficiencies that are commonly associated with long-form paper applications and salesperson data entry are eliminated.

As part of eLEND Solutions’ ongoing mission to provide a simplified vehicle purchase process for the retail automotive industry – current and future CreditPlus subscribing dealers can choose one, multiple or all Showroom Credit Express options – for no additional charge or fee. Additionally, all options seamlessly integrate with all major CRM platforms, include secure digital storage with easy access to all disclosures and consent (permissible purpose), and include an option for digital signature capture. 

“CreditPlus was developed to enhance dealers’ existing credit application processes so it works better for everyone – consumers, salespeople and the F&I department. Upgrading it with in-showroom digital access ‘anytime, anywhere’ was a logical extension,” said Pete MacInnis, eLEND Solutions’ CEO. “eLEND’s focus is to deliver tools that keep dealers doing what they do best – selling cars – while helping them improve profitability per car sold, and the consumer experience.”

CreditPlus, which delivers among the industry’s best performing and most secure dealership credit reporting solutions, works with 2,000+ dealership rooftops, has integrations with all major CRM & Inventory platforms, including DealerTrack and RouteOne - and is partnered with all 3 credit bureaus and all credit resellers.

eLEND Solutions will be demonstrating Showroom Credit Express at NADA Booth #6553W. 

About eLEND Solutions

eLEND Solutions™ (DealerCentric rebranded) is re-platforming from a company specialized in credit solutions to a FinTech SaaS and DaaS company focused on providing a simplified vehicle purchase process for the retail automotive industry. The advantage of their industry neutral credit and finance decisioning solutions is a more efficient, faster-moving Sales and F&I deal-flow that sells more cars at higher profits in less time – benefitting dealers, lenders and consumers.

Contact: 
Media Relations 

Melanie Webber, mWEBB Communications, melanie@mwebbcom.com or (949) 307-1723
Crystal Hartwell, mWEBB Communications, crystal@mwebbcom.com or (714) 987-1016

There are a lot of expensive technology solutions out there that, you are constantly being told, can accomplish great things for your dealership. Almost everyday, there is a headline about the next great tech solution. But there are fewer headlines about how they often come with added costs, increased complexity, and, a ton of frustration for your staff– and nowhere is this more true than in the automotive retail space, where vendors are constantly promising new and shiny tech solutions for your dealership.

Dealers are understandably wary and many have told me they won’t change the way they do a manual task until they find a tech-based solution that ticks three boxes: 1. speeds up the process, 2. makes staff more productive, and 3. improves profitability. Seems like a pretty good litmus test to me.

We have entered an era of tech complexity in automotive retailing that makes the early days of the Internet look like a walk in the park. We are no longer talking about getting inventory online quicker or optimizing websites for mobile devices; instead, today’s tech conversations are rife with terms like artificial intelligence, machine learning, blockchain, data mining, digital retailing and more. It’s enough to make your head spin.

By keeping it simple, with those three boxes to tick, you can stay focused on using technology to improve existing processes, rather than reinventing a wheel that does not need reinventing. Here are three good examples: 

1. Digital Retailing: A recent study by our team at eLEND Solutions found a substantial amount of confusion over what digital retailing actually is – and what it accomplishes. Dealers were clear about its benefits – 70% said that the No. 1 benefit was shorter transaction times. However, they were less sure what digital retailing should accomplish: 19% defined the technology as something that lets customers start but not finish their deal online, while 10% said it was about facilitating the entire sales and F&I process online.

Ultimately, what digital retailing actually is – and what makes it potentially so effective is its true simplicity – it simply improves and gets an early start on the existing buying journey.Tear away the bells and whistles and fancy terms, and all you need to get started is an online credit app that offers instant credit decisions and a trade-in tool that offers instant values or purchase prices.  These simple to use – and easy to implement – technologies build trust and confidence, and make the showroom sales process easier and faster. Countless surveys and studies have found that customers value the concept of digital retailing because it starts the process online – where they are most comfortable – and speeds the in-dealership experience, making for a less anxious and friendlier environment. Simpleand effective.

2. ID Verification: Smart ID verification is the epitome of technology improving the buying experience for your customers and your staff. It does (2) things very well: removes process bottlenecks and protects your dealership from ID and financial fraud.   DL technologies can authenticate the driver’s license is an official government issued document; validateimportant information fields  like name, address and DOB; and enrich the lead with a appended cell phone number.   The  purified information is then exported into your CRM – creating a more efficient in-store buying process and eliminating the information disconnects/gaps between Sales & Finance.

More advanced DL technologies can even convert the DL scan into a consumer consented pre-qualification with no SSN requirement – enabling a faster pre-qualification process, quickly and easily, at any point in your sales process.

A recent case studywith Huntington Beach CDJR found that 53% of customers who opted-in for pre-qualification via a driver’s license swipe prior to a test drive went on to buy a car from the dealership. Comparatively, just 34% of the customers that declined pre-qualification ended up buying at the store.

3. F&I Aftermarket Sales:F&I product sales have become a more prominent part of revenue and profitability for most dealers. Smart dealers are applying every day technology to help bridge the distance between sales and finance – especially technologies that almost everyone knows how to use:  tablets, smartphones and touchscreens. Most of us consume content and interact via these devices all day long.Using these same technologies during the sales process will make customers comfortable and more engaged. Recent studies have found that consumers are interested in aftermarket products – as long as they’re introduced earlier in the process- and what better way than via a mobile device?

I’m not saying it’s not important to think about how future technology solutions will impact automotive retail: staying aware of changes and trends will help you plot the way forward in terms of profitability, hiring plans, and growth projections. However, just because there’s a shiny new gadget doesn’t necessarily mean that it will work effectively for retail operations. Technology is supposed to make things easier, not harder. A mantra we should all repeat more often!

Revenue opportunities are dealership opportunities

Here’s why: In many respects, the future of automotive retail is connected to blockchain because it’s a scalable, secure ledger system that can be used in virtually any type of transaction, no matter how small or what the data may be. In fact, auto retailers sit at the intersection where the use of blockchain may well open up possibilities for additional revenue streams, and lower operations costs. Here are three areas that come to mind:

1. Registration and title management
The streamlining of registration and title documents would be a big benefit in terms of time-savings, and cost. Instead of multiple online forms and software systems for in-state and out-of-state registration, a blockchain solution would connect all parties: buyer, seller, government, and third-party VIN and insurance databases. It would potentially make the process lightning fast and transparent to all. Just think: no more waiting 10 days for lender confirmation of title transfer. Thanks to this technology you can remarket that trade-in immediately.

2. Service and relationship management
Collecting data such as GPS, service, and driving tendencies is a benefit in the era of connected cars. When blockchain technology manages that data, the opportunities are wide open. For example... to read on click here

Is it me, or does it seem like there’s an exciting new technology solution for dealers almost every day? A new way to sell cars online, another approach for menu selling, a better way to desk a deal…always something new, and always something that’s supposed to be better than the way retail has functioned for the last 100 years.

It can be hard to distinguish between the hype and reality.

Interestingly, something that’s making a lot of noise right now (and might appear to be blown out of proportion) might be one of the real innovations to make a difference: blockchain technology. You might be surprised to learn it’s not new: blockchain is the real gold behind Bitcoin, because it’s the technology that allows the currency exchange to work. And it quite possibly could be the answer to the question everyone’s asking: How can dealerships run profitably in a sharing, on-demand and subscription-style economy?

Blockchain technology is a practical, surprisingly straightforward answer that’s tailor-made for automotive retail.  To read on click here.

Automotive lending sales veterans Joe Peterson joins as Chief Sales Officer and Flory Hunsaker as Regional Sales Director; both bring decades of sales success to eLEND as it introduces next-gen finance platform to dealerships across the US

Foothill Ranch, CA – March 7, 2018 – eLEND Solutions™, specialists in online and in-store finance and ‘deal-making’ solutions for auto dealers, today announced they are building out their sales team with two proven auto finance sales leaders. Joe Peterson has joined as Chief Sales Officer and Flory Hunsaker as Regional Sales Director. Together, they will lead the formation of eLEND’s national sales team to fuel the roll-out of the company’s upcoming next-stage F&I solution. The new solution, which helps dealers complete profitable deals in record time, while reducing the costly loan rewrites that plague even the most experienced Sales and F&I Managers, will launch into the market in Q2.

“I call Joe and Flory the ‘dynamic duo’ - they come to eLEND after working together to build a huge and successful portfolio of over 9,000 dealer customers,” said Pete MacInnis, CEO of eLEND Solutions. “They will be instrumental as we usher in this exciting new phase in our growth. Their deep experience in both the auto retailing and financing space, and impressive past successes, perfectly position them to bring our innovative new products and services to market.”

In an environment where customers are hyper-sensitive to time and hassle – and are demanding quick approval for financing – the challenge is to eliminate process dead zones, streamline the experience and, importantly, reduce cost to the dealer. Peterson and Hunsaker are building a sales team that will help retail professionals simplify this all-important part of the car buyer’s journey with products that crunches millions of pieces of data into a user-friendly platform, without sacrificing profit or losing lender relationships. With an average of 13% of contracts being rewritten, it’s a key issue and a significant cost risk to dealers and their finance sources.

“Joining eLEND Solutions to help dealers bridge the gaps in the current auto finance process and simplify what is currently an incredibly complex and inefficient process  is an opportunity I deeply relish,” said Peterson.

Peterson’s career spans 30-plus years in the automotive brand, retail and finance space. During that time, he has held key leadership positions with companies such as Gateway One, Reynolds & Reynolds, and Capital One, among others. Each opportunity has brought with it a chance to expand his expertise, and bring to bear a management style based on a results-driven approach to problem solving. Peterson has been especially known for his ability to use trend-based market analysis to boost market share and revenue. He is widely known as a customer-first advocate who puts his focus on developing a positive rapport through solid business relationships.  

“We’re excited to help bring forth the next chapter of eLEND Solutions to dealers and can’t wait to show customers what we have in store for the future of automotive retail and lending: from innovations in workflow and decisioning to streamlining the process of making the best match between customer and lender,” added Hunsaker.

Hunsaker brings 25-years of experience in the automotive lending industry, including a decade at Gateway One where she rose through the ranks based on her excellence in sales, new market development and leadership. Most recently, she served as Regional VP, Southwest states and built a highly success sales team with over $80 million monthly in loan originations. Goal-oriented and visionary, among her many achievements at Gateway One were creating its first employee training program, developing and managing a credit/sales team for mega dealer groups and helping generate significant metrics improvements across the company’s sales initiatives. 

“The scientific approach that eLEND Solutions brings to such challenges is the reason we joined this team – and what makes the company a key transformative player heading into the future,” concluded Peterson. 

About eLEND Solutions
eLEND Solutions is a privately held automotive technology company specializing in online and in-store credit, finance and ‘deal making’ solutions designed to create a more efficient, faster moving Sales and F&I workflow that helps dealers sell more cars in less time, improve profitability and increase customer satisfaction.  For more information, visit www.elendsolutions.com.

Contact: 
Media Relations 
Cassandra Cavanah, mWEBB Communications, Cassandra@mwebbcom.com or (818) 397-4630
Crystal Hartwell, mWEBB Communications, crystal@mwebbcom.com or (714) 987-1016