The upcoming Automotive Intelligence Summit is designed to help dealers get a better handle on the technological challenges Equifax identified on Tuesday.
A new automotive survey from Equifax finds that dealers understand digital retail solutions, but may struggle in providing such solutions to customers. The online survey polled 135 dealers around the U.S. to get a better understanding of current trends in retail transactions, credit applications, vehicle financing, fraud and their prospects of offering online digital retailing options to customers.
Equifax learned that time at the dealership continues to remain a problem for consumers looking to complete a transaction, particularly when it comes to the F&I process.
According to dealers, 45% said it still takes between one-and-a-half and two hours, while 31% said it takes between two and two-and-a-half hours to complete a deal. While 84% of dealers said they offer appointment setting online, only 27% said they can facilitate the entire deal online.
Conversely, 87% of dealers admit that customers would prefer to complete a deal online.
Additionally, 89% of dealers acknowledged that they continue to grapple with unidentifiable information in credit applications, saying they handle one to two credit applications each day that fall into this category. Dealers also remain largely focused on collecting information stated on the credit application, such as income (89%) and employment (84%).
Less than half of dealers (42%) said they are also currently collecting alternate forms of data such as property ownership or property payment histories, additional data that can be critically helpful in identifying the appropriate financing for an individual.
“There remains a distinctive gap in what dealers are currently offering and what car shoppers want when it comes to the realities of digital retailing,” said Jenn Reid, vice president, strategy and marketing leader, automotive, at Equifax.
“Clearly, there is a lot of room for improvement in speeding up the transaction process and offering a complete online transaction solution,” Reid continued. “It is also clear that dealers continue to need reliable solutions that help speed up the process with credit qualifications and fraud prevention, which continue to impact CSI scores and online reviews, and put dealers margins at risk each month.”
Fraud continues to be a challenge as well. The survey revealed that 76% of dealers are forced to handle between one to three fraudulent transactions each month, and another 19% saying between three and five transactions each month.
“Fraud comes in many forms within an automotive transaction and remains a significant concern for many dealers, illustrating the deep need for advanced digital technologies that today offer instant verification of identity, residence, and other forms of alternative data,” Reid said.
“These sophisticated technologies can reduce the threat of fraud while also improving the overall customer experience for shoppers,” she went on to say.
During AIS 2019, a collection of dealers will be discussing these topics and more.
Next month’s Automotive Intelligence Summit will have at least three of North Carolina’s most well-known and digitally savvy dealership groups on hand for a panel on “Auto Dealerships & The Digital Revolution: What’s Next?”
The session, moderated by North Carolina Automobile Dealers Association president Bob Glaser, will include:
—Eric Flow, president of management services, Flow Automotive Companies
—Erick Kirks, marketing director, Johnson Automotive
—Chris Vester, chief operating officer, Hubert Vester Auto Group
The session will delve into the digital revolution in the auto industry and what it means for dealerships.
It will examine how dealers are evolving to address the digital retailing needs of their customers, while also focusing on how dealerships are using fintech to improve their customers experience inside and outside of the physical dealership.
The panel is set for 1:45 p.m. ET on July 24.
The event agenda will also include various other angles on the evolution of digital retail presented during the three days of the second annual AIS.
—Separating the Facts from Fiction: Andrew Tai, CEO at MotoIsight, says his goal during his keynote “is to help dealers better understand the wave of change that is already upon us, but also navigate how to take advantage of it.”
—The Future of the Automotive Experience — How Unification of Technology Drives the Right Customer Journey; Craig Sims, VP, Automotive Solutions, Equifax: This session will help attendees see how today’s digital retailing tools are helping to create unification in an effort to drive the most successful customer journey.
—DR: Your Direction Determines Your Destination: The big buzzwords in automotive right now are “digital retailing”. OEMs and dealers alike are trying to navigate this new world. Tim Cox, Co-Founder at CarNow, shares a clear road map of what is working in some of the most successful dealerships in the country.
—PeteMacInnis, Founder and CEO, eLEND Solutions, will tackle the following question: Is Digital Retailing Promising More Than It Can Deliver?
—Digital Retailing and the role of FinTech; Tarry Shebesta, CEO, truPayments: Dealers, OEMs, lenders, credit bureaus, and technology providers are all jockeying for a winning position. Place your bets, and get ready for a spirited interactive discussion from session attendees.
Complete agenda and registration details are available www.autointelsummit.com.