News has been flowing out of Dealertrack Technologies this week, as the company announced it has hit a milestone for its Credit Application Network on top of also securing a new partnership with Kia Motors America to use its Intelligent Payment Calculator for Kia.com.
The company also announced it has promoted two of its top executives.
Dealertrack Technologies announced that company execs Rick Gibbs and Raj Sundaram have been named co-presidents, effective immediately.
Chief executive officer Mark O’Neil will continue to lead the company, and Gibbs and Sundaram will now work to provide increased focus on building and delivering dealer-driven technology solutions across the online to in-store platform, the company said.
In his new role, Sundaram will oversee Dealertrack’s sales, marketing and brand initiatives. The DMS, Inventory, CRM and F&I product teams will continue to report to him, as well.
And Gibbs will now lead Dealertrack’s product development initiatives including engineering, product strategy and management. He will also oversee the new product and platform solutions teams focused on integrating Dealertrack solutions. Dealertrack’s digital marketing product family, Dealer.com, will continue to report to Gibbs, as well.
“As we have evolved our platform to provide dealers with all of the technologies and services they need to manage their operation from online to in-store, we also have had to evolve our organization to maintain optimal performance,” said O’Neil. “The appointment of Raj and Rick as co-presidents is a key part of our strategy to centralize all product development into one team, as well as unify our go-to-market execution teams. Their proven leadership, vision, and expertise will help strengthen our competitiveness as we continue to provide our clients with the capabilities to transform automotive retailing.”
Dealertrack Reaches Credit Application Network Milestone
Dealertrack announced this week the number of active lenders connected to its Credit Application Network has grown past 1,500.
The network, part of Dealertrack’s Dealflow Advantage, has grown from five lenders back in 2001 and allows dealers to electronically submit application data to a network of captives, banks, credit unions and independent finance companies.
“Today’s credit markets continue to be vibrant, and dealers are maintaining a healthy mix of prime, subprime and full spectrum lending options to help customers get financed with ease, while creating operational efficiencies through electronically processing automotive loan applications,” said Michael Collins, senior vice president, F&I solutions, Dealertrack.
American Finance Co. is just one of the lenders that utilizes the company’s network.
The lender launched in 2012 to serve subprime customers in its market. To date, they have booked $7 million in loans, all generated through Dealertrack.
“With this milestone of 1,500 lenders comes thousands of stories, like American Finance Company’s, of how automated automotive loan processing has changed and improved business lending organizations over the years,” Collins added. “We’d like to acknowledge the achievement of this milestone by celebrating the lenders that helped make the largest credit application network possible. The Dealertrack network has given dealers a powerful and effective tool for processing loans easily and efficiently.”
In honor of its recent milestone, Dealertrack is sharing both dealer and lender success stories with the Dealertrack Credit Application Network.
Visit www.dealertrack.com to read stories, submit your own or recommend a lender who goes above and beyond to serve their dealer clients and consumers.
Kia.com To Feature Dealertrack’s PaymentDriver
In an effort to help optimize the online to in-store shopping experience for Kia.com website shoppers, Kia Motors America will now feature the DealerTrack PaymentDriver solution on the website.
PaymentDriver is a monthly payment calculator that provides payment options for online shoppers.
“Today, consumers are seeking out better information throughout the vehicle purchase process and are using digital resources first to find that information,” said Raj Sundaram, co-president at Dealertrack. “The use of PaymentDriver will help Kia dealers better capture opportunities, drive deeper digital engagement, and increase lead conversion, while presenting a better overall shopping experience.”
Now, Kia.com shoppers can use the tool to look for lease and finance options by shopper ZIP code, and the PaymentDriver tool will deliver options using current Kia incentives and interest rates. The tool will also determine fair trade-in value for the shopper’s current vehicle.
In addition, PaymentDriver allows online shoppers to send their selected vehicle and financing options directly to a local Kia dealer and request a follow-up from that dealer, the Dealertrack reported.
“Kia is moving to make the car-buying process a more convenient one using PaymentDriver, which will provide real-time results to each and every customer,” said Tim Chaney, vice president of marketing communications, KMA.
Interested in honing your ability to securely locate, recover and communicate with your portfolio of leased and financed vehicles? In real time?
Tune in to the latest SubPrime Auto Finance News webinar, on Wed., Nov. 19 at 2 p.m., where editor Nick Zulovich will be hosting CalAmp’s vice president Scott Stone to discuss the 5 Tips for Getting the Most Out of Your GPS Payment Assurance Program.
The tips will help you address scalability, future-proof your solution, and also discuss the importance of CDMA and quality installations.
Interested parties can register for the webinar here.
When it comes to successfully selling a vehicle and getting it financed, particularly for subprime borrowers, dealers and automotive finance companies should heed the advice of former President Reagan and “Trust, but verify.” What we are seeing in the market, however, is that as subprime auto lending continues to grow at record-setting levels, most dealers and finance companies are still relying on traditional credit scores and customer-reported information to deliver and finance loans and leases.
Unfortunately, these traditional verification procedures simply are not the most accurate or transparent way to assess a borrower’s qualifications. Credit scores reflect only a portion of the applicant’s full picture related to his or her creditworthiness.
With insufficient detail, the wrong terms or risk level could be placed on the deal, denying qualified applicants or inadvertently approving excessively high-risk borrowers.
Additionally, applications frequently contain inflated or misrepresented employment and income information, and verifiable insights into historical job tenure and disruptions (which can be highly predictive of ability to pay) are typically not included or — at best — inaccurate. This can lead to heightened risk of loan default, and put dealers at risk for loan buy backs from the finance company.
Because underwriters and funders are usually working to close deals as quickly as possible, they may attempt to manually verify income and employment if they feel it is needed, but this is highly inefficient and often fails to properly identify any inaccurate data.
More recently, rigorous guidelines and regulatory enforcement by the Consumer Financial Protection Bureau has compounded the need for more accurate and comprehensive verifications to ensure good business practices between dealers and lenders, and provide reliable audit trails that establish accountability and compliance.
According to Scott Lilja, senior vice president with the National Independent Automobile Dealers Association, “As a national trade association representing a major segment of the used-vehicle retail industry, we much support full transparency and use of relevant, timely and high quality data to ensure the auto finance process is as objective, thorough , risk averse and compliant for all parties involved. We highly encourage our members and the auto industry at large to embrace risk mitigation solutions that represent the highest standards of fair and transparent automobile sales transactions."
While the industry is seeing improvement in this regard as borrower information is becoming more easily accessible with the consumer’s consent, the top three reasons for vehicle loan returns remain:
1. A lack of verification of stated income;
2. Missing or inaccurate documentation to meet stipulations; and
3. A failure to meet approval terms and contracts that are out of policy.
Verifications sourced through an objective, independent database provide greater accuracy, accountability, transparency and detailed insight into borrowers’ qualifications while also providing operational and service level improvements.
Furthermore, database-supported verifications result in more consistent reliability, and increased efficiency and security by ensuring centralized, replicable and streamlined processes. This is accomplished by compiling and managing unique income and employment data that is updated with each pay period. This data reduces risk and mitigates fraud while enabling lenders to refine risk-level assignment and loan pricing, and reduce stipulations to more accurately reflect applicants’ credit-worthiness.
Recent Studies Illustrate the Significance of Verification
Equifax recently compared database-supported verifications to traditional internal verifications to demonstrate just how practical — and ultimately profitable — database verifications are. The studies looked at the impact of four specific attributes on borrower credit-worthiness:
• Income
• Employment tenure
• Pay frequency
• Employment disruptions
Each of these attributes helps create a more complete context in which to interpret credit ratings. Lenders can also develop a more dynamic understanding of each applicant’s individual circumstances.
The research from the different studies compared a random 10 percent sampling from The Work Number database to traditional credit bureau reporting and verification processes. It examined 90-plus DPD (days past due) delinquency rates from September 2012 to September 2013 for vehicle loans originated in 2011, 2012 and 2013. VantageScore 3.0 was used to quantify performance differences between The Work Number and traditional bureau data.
Income: Specific Levels Predict Specific Loan Performance
The research not only revealed that higher wage earners are less likely to default, but also that the risk of delinquency is reduced approximately 50 credit score basis points for every $10,000 salary increase for individuals earning $10,000 to $80,000 annually.
Furthermore, borrowers earning $10,000 to $20,000 annually were 10 times more likely to go 90-plus DPD on their monthly payment than those earning $100,000 or more.
The research also showed that database verifications identified more than twice the number of applicants overstating income compared to internal verifications. Around 80 percent of lower income applicants inflated their reported income, while approximately 75 percent of applicants earning $50,000 or more under-reported income. As a result, a large number of prime rate borrowers qualify for better terms over the life of their loans, leading to increased customer satisfaction and retention.
Pay frequency is also an important factor, as the research revealed that even highly paid hourly employees are less likely to stay current with loan payments than those who are salaried but paid less. In fact, salaried applicants are twice as likely to stay current with auto loan payments as hourly workers.
Ultimately, verifying income and pay frequency reduces delinquency risk and is essential when defining suitable loan rates and terms. In turn, better quantifying the probability of default enables lenders and dealers to develop more accurate strategies while improving overall portfolio performance as deals are structured to reflect the most realistic repayment scenarios and can be tailored to the most probable estimates to ensure a borrower’s likelihood of keeping payments up to date.
Employment Tenure: Over-Reporting Is High
Based on the findings of the studies, the number of applicants with less than one year of tenure is typically under-reported by more than 150 percent. In the subprime population, borrowers with less than one year of tenure and loans of less than $15,000 are nearly twice as likely to become delinquent than those with 10 or more years.
In addition, borrowers in the general population with less than one year of tenure are three times more likely to go 90-plus DPD than employees with 10 or more years.
In order to gain a comprehensive understanding of a prospective borrower’s circumstances, data generated from database verifications must be combined with employment history. Traditional credit scores neglect job tenure data, but verified tenure can prove effective in mitigating poor performances of small loans and short employment periods.
Employment Disruptions: Immediate Identification is Key
As one might expect, loan applicants and current customers who have recently lost their jobs present greater risk than if they were still employed. With automated verifications, finance companies and dealers are able to identify gaps in employment history that have not been reported accurately while immediately identifying that a new employment disruption has occurred.
Because database verifications include data that is updated each time reporting employer’s process payroll, job disruption can be detected almost immediately. This represents a significant improvement over relying solely on information from credit reports, as that information only indicates the consequences of lost income well after employment has ended.
Early detection also creates opportunities for lenders to respond quickly, and proactively can protect margins by enabling finance companies to intervene with borrowers before payments become delinquent and issues with other creditors arise.
In the event that such intervention is unsuccessful or impossible, appropriate account management strategies can be developed in a timelier manner, and lenders can better partner with their customers to avoid default and improve the relationship instead of creating an adversarial environment.
Identifying and Accommodating the Right Customers
As with any type of analysis, the more specifications that are available, the more detailed and customized the results can be. With multiple data sets, finance companies have much greater insight into loan performance, and the characteristics that identify the customers that align with their target risk profile. Understanding the risks posed by a wide range of income levels means deals can be more appropriately structured to mitigate risk.
Coupling that data with traditional credit scores allows lenders to better customize deals that more accurately reflect the borrower’s personal history.
Combining additional segmented data on pay frequency, tenure and job disruption means gaining even further insight into the financial status of individual borrowers, and that introduces the possibility of eliminating stipulations, offering more favorable terms and improving underwriting efficiency. Bottom line — verified income data doesn’t just facilitate more deals, but identifies the most appropriate deals.
In a time when the subprime vehicle market is booming, dealers and finance companies can no longer rely on traditional credit scores and customer-reported information to sustain healthy and transparent loan portfolios. More accurate, timelier data means more profits and less risk. The wisest dealers and lenders will leverage database-supported verifications to do so.
With verifications supported by a database, dealers and lenders are empowered through greater accuracy, accountability, transparency and detailed insight into borrowers’ qualifications to make more informed, proactive decisions; customize more deals to the benefit of the finance company, dealer and customer; improve customer satisfaction; and increase the number of approved deals.
Jennifer Reid is the senior director of product marketing for Equifax Automotive Services. Reid can be reached at [email protected].
Toyota Financial Services’ own Ann Bybee was honored with the Distinguished Service Award (DSA) by the American Financial Services Association at the AFSA’s 98th Annual Meeting in Los Angeles at the end of October.
Bybee, the company’s vice president of corporate strategy, communications and corporate social responsibility, was one of three executives to receive the 2014 DSA at the meeting hosted Oct. 27-29 at The Ritz-Carlton Marina del Ray. The award is given to individuals who have contributed significantly to the industry and the association’s growth on a national level, advanced its mission and objectives, and raised its image.
Bybee’s contribution to AFSA includes currently serving on the Vehicle Finance Board and conference planning committee as well as the association’s Education Foundation Endowment Committee, to further financial literacy.
Bybee began working for Toyota in 1990 with the sales group and served in several managerial positions since, including in 1999 when she was selected to be part of the international management development program in Tokyo. Returning to the U.S. in 2001, she became a corporate manager for Lexus Advertising and Brand Strategy. She is currently a member of the TFS Management Committee in addition to her role as vice president.
Equifax highlighted this week that dealers who use Credit Bureau Connection's credit reports and compliance solutions now have the opportunity to access income and employment data as well.
Officials explained this data provided via The Work Number can allow dealers with permissible purpose and consumer consent the ability to verify their consumers' reported income and employment. Verifying this information can help the dealer to clear common finance company stipulations generated during the auto financing process and validate data reported on loan applications to ensure accuracy.
The Work Number is a proprietary database of more than 248 million employer-direct payroll records owned by Equifax.
The Work Number provides income and employment information, in seconds, to banks, mortgage companies, dealerships and other commercial entities when authorized by the consumer, and in compliance with Fair Credit Reporting Act regulations.
Equifax research indicates that almost 25 percent of borrowers purposely or inadvertently inflate their stated income on auto loan applications by a factor of 15 percent or more, which increases the possibility of charge-offs and delinquencies for dealers and lenders.
For the other 75 percent of buyers, Equifax insisted the ability to quickly verify income and employment information at the dealership is very important from a strategic standpoint, as it helps ease the challenges of finance company “stips” and other potential roadblocks to financing.
Additionally, Equifax emphasized that having fast access to that data can enables dealers to close more sales by eliminating the risk of losing the deal because a customer was sent away from the showroom to collect proof of documentation and never seen again.
“Our mission is to serve the dealer and lender communities alike through access to the highest quality database of income and employment data available in the marketplace,” Equifax senior vice president Michael Kuentz said.
“By partnering with CBC, our auto dealer customers are empowered to close more loans and create a better experience for auto buyers — while effectively protecting themselves from the negative impact of misstated income,” Kuentz continued.
Credit Bureau Connection president and chief executive officer Mike Green added, “CBC is thrilled to partner with Equifax to offer Instant Income and Employment Verifications to our customers. As the automotive industry leader in credit report and compliance solutions, we understand the value of retaining the customer at the dealership to finalize the deal.
“We understand the odds of a buyer returning to complete a vehicle purchase decrease substantially if they are forced to leave the dealership to obtain necessary income and employment proof,” Green went on to say. “Having the ability to satisfy this requirement while the buyer is in the buying mode is vital to a dealership's closing ratio.”
The investment firm that oversees two subprime auto finance companies — Flagship Credit Acceptance and CarFinance Capital — announced on Thursday that it is merging the two operations together.
Officials from the alternative asset management unit of Perella Weinberg Partners explained the combined company now will total assets in excess of $2 billion.
“Since forming Flagship and CarFinance, we have been pleased with the performance and strong execution of both companies,” said David Schiff, partner at Perella Weinberg Partners and portfolio manager of the asset based value strategy. “Together, the two companies will create a top-tier independent auto finance company with enhanced scale, lower cost of capital, superior cost controls and more efficient access to the capital markets.
“Most importantly, the combination will better position these companies to provide a critical segment of the population access to credit in a first-class, fair, professional, and transparent manner,” Schiff continued. “We are confident that the combined company will continue to have industry-leading standards and will achieve greater success than either Flagship or CarFinance could on a standalone basis.”
Michael Ritter, chief executive officer of Flagship, will become the CEO of the combined company.
“Combining with CarFinance at this point in the companies’ growth cycles will create a leading automotive finance company with increased scale and greater flexibility,” Ritter said. “Importantly, as a combined company, we will be able to better serve our dealer base through our existing brands and products and continue to provide essential financing to under-served consumers so that they can procure transportation to perform necessary daily needs.
“I look forward to working closely with my new partners at CarFinance and our sponsors at ABV to realize the full potential of the combined company,” Ritter added.
Schiff also commented on behalf of the board of directors of CarFinance.
“I would like to thank Jim Landy for his valuable contributions in establishing CarFinance as a leading indirect and direct lender to the auto finance industry,” Schiff said. “We partnered with two of the strongest and most accomplished management teams in the sector in Flagship and CarFinance, and we appreciate their efforts in creating two of the most successful players in the space.
“We look forward to working with Jim and Mike as we bring together these two complementary platforms,” Schiff went on to say.
Since their inceptions, Flagship and CarFinance have each established well-recognized and accepted term asset-backed securitization programs obtaining ratings from multiple nationally recognized rating agencies. Each has also entered into bank warehouse facilities from some of the most prominent financial institutions in the world.
Perella Weinberg Partners believes the combined company will be a leading, independent auto finance company with an enhanced national presence and wide geographic diversity.
On a combined basis the platforms currently originate approximately $1.2 billion of annual volume and employ approximately 600 employees.
Headquartered in Chadds Ford, Pa., with operational offices in Irvine, Calif., Phoenix, and Irving, Texas, Perella Weinberg Partners highlighted the combined company will benefit from a network of more than 7,700 dealers nationwide, as well as from an active direct lending division that is “helping to transform the auto financing experience.”
Perella Weinberg Partners added that the consummation of the merger is subject to the receipt of certain regulatory approvals and other customary closing conditions for a transaction of this type.
Payment-solution provider BillingTree announced today its new partnership with DealerClick, further expanding the former’s influence on the automotive finance market.
Through the partnership, DealerClick can now offer its customers a wider choice of payment processing and self-service options while using the web, mobile, IVR and debit/credit card payments. Payments via BillingTree integrate directly with DealerClick’s Dealer Management System with the aim to increase efficiency for auto finance lenders, added convenience and accountability while lowering customer payment mishaps.
“DealerClick is extremely pleased to partner with BillingTree, a leading provider of integrated payments solutions,” DealerClick’s Calvin Davis said. “We believe this partnership will improve our clients’ abilities to better manage their businesses by being in compliance with the federal and state regulations, by increasing the collection of payments and decreasing the number of payment delinquencies.”
Marya Lang, BillingTree’s general manager of auto finance, believes the new partnership will help strengthen her company’s foothold in the automotive finance sector.
“We are delighted that DealerClick has selected BillingTree for this strategic alliance and partnership,” Land said. “DealerClick is a leading technology solutions provider for all kinds of auto dealerships and auto finance companies — a key growth market for BillingTree. Together we can offer auto finance companies the widest range of payment options in a tightly integrated management solution to enable them to run their businesses effectively in what is now a fast growing part of the financial services market.”
Wolters Kluwer Financial Services announced Monday that Automotive Credit Corp., a Midwest-based provider of subprime financing solutions, joined the AppOne platform.
The companies explained AppOne can help to automate the credit approval and compliance processes for finance companies and the dealerships in their networks.
This integration can provide Automotive Credit with access to the AppOne network of independent dealers as well as Wolters Kluwer Financial Services’ network of Bankers Systems motor vehicle retail installment contracts, which can help ensure loan documentation is accurate and compliant.
“Compliance requirements are a real challenge for dealerships. This is a significant new tool in our efforts to help alleviate the burdens of complicated F&I functions so they can focus their energy on meeting the needs of their customers,” said Jeff Glaser, vice president of sales and marketing with Automotive Credit.
“The new platform not only simplifies the loan origination process, but it also helps build relationships with more dealers,” Glaser continued.
Brad Fleener, senior director and general manager of indirect lending at Wolters Kluwer Financial Services, added, “We are committed to helping lenders and dealerships in the sub-prime auto financing marketplace ease compliance-related challenges and grow their business.
“Automotive Credit Corporation has a strong reputation for its dedication to serving the sub-prime auto financing needs of dealers and clients, and we are excited to help support their efforts so they can continue to grow safely and profitably,” Fleener went on to say.
For more information, visit www.wolterskluwerfs.com/indirect.
Along with some explanation about conflicting economic trends, CNW Research highlighted the healthy year-over-year gain in subprime financing the industry has posted this month.
According to the firm’s latest Retail Automotive Summary, CNW indicated the amount of completed contracts connected to subprime borrowers is 18.6 percent higher in October compared to the same month a year ago. On a sequential basis, the gain is much more marginal at just 0.35 percent.
CNW broke down the subprime data and found that minority borrowers constitute the majority of that figure with Hispanics comprising 39 percent, African-Americans making up 32 percent and Asians representing 7 percent.
Varying Trends
CNW president Art Spinella explained there are two economic measurements he thinks might be conflicting: consumer confidence and auto sales.
“While most analysts and reporters want to link the two by claiming higher confidence results in greater new-car sales, the reality is the national confidence (and vice-versa) measurements are questionable as a means of determining sales of big-ticket items,” Spinella said. “Why? They measure everyone equally even if the person surveyed is neither likely nor financially capable in making a $30,000 acquisition.”
In reality, Spinella contends that concerns about the economy may impact everyone surveyed because of rising food prices or job stability and what he called the “actual key” market
“Those capable, willing and able to make a vehicle purchase is likely to have a totally different view of their economic well-being,” he said. “A new or larger monthly payment isn’t as much of a concern.”
Update on Jitters Index
Among key market consumers, CNW’s Jitters Index — which measures consumer concerns that may impact auto buying — again improved in October.
This month’s reading topped September’s measurement by 2 percent and last October’s mark by a healthy 8.6 percent.
Spinella indicated that movement turned into a “whopping” 19 percent increase in floor traffic with an “impressive” 11.4 percent gain in closing ratios.
He added same-store sales were up a modest 4.4 percent “indicating many dealerships completed renovations, remodels and location moves in time for the fall season.”
Additionally, in what should be good news for finance companies, CNW noted the share of vehicles sold at retail topped 60 percent, returning to a historic trend line, according to the firm.
Officials from eLEND Solutions highlighted the seven main components of CreditPlus, the next generation of their online, interactive credit application platform.
Launched on Monday, the company explained CreditPlus can instantly pre-approve shoppers based on dealer-defined credit criteria and can provide shoppers with direct, upfront access to dealership financing sources and real near-final terms of approval from multiple lenders, all of which are controlled by the dealer.
With CreditPlus, officials insisted that for the first time, dealers are able to match a buyer’s credit profile with the right vehicle and the right financing program before the customer has even started the test drive.
Pete MacInnis, chief executive officer of eLEND Solutions emphasized this solution can facilitate a more equal exchange of information between consumer and dealer and the structuring of a more profitable deal.
“Auto dealers are looking for ways to convert online shoppers to in-store buyers … faster,” MacInnis said.
“Today’s shoppers expect more information, multiple choices, transparency and immediate gratification,” he continued. "CreditPlus, powered by a patented rules-based loan decision engine, allows the customer to select from a menu of approved near-final finance terms, such as APR, term, monthly payment, down payment) from multiple lenders — all controlled by the dealer.”
Here are the seven major elements in how CreditPlus is geared to operate:
— Better consumer experience: The company indicated CreditPlus features an easy, short interactive application that is geared to be 100 percent mobile and tablet adaptive. Applicants not only can get approved for financing in seconds, but they can also view their credit score and pick their payments — all of which is designed to drive engagement and accelerate conversion of online shoppers into showroom buyers.
— Better dealer controlled experience: CreditPlus can offer dealers numerous application configuration options, including videos, vehicle detail image selections and lead management tools. The company stressed that dealers are in complete control of credit criteria and payment terms displayed to the customer, which can also can include dealer mark-up, doc fees, service contracts and more.
— Electronic lender rate card: The company pointed out CreditPlus is powered by a rules-based loan decision engine that can aggregate a limitless universe of finance company programs based on credit, stability and ability. Results from real multiple loan underwriting rules, APRs, program guidelines and more are available instantly to the dealer and the customer.
— Communication and system integrations: CreditPlus can drive engagement via automated email and text communications, chat integrations, automated system escalations and alerts — all designed to keep dealers in touch with ready-to buy online shoppers and convert them into showroom buyers faster.
— Security: eLEND Solutions is EI3PA Certified, the highest level of security certification in the industry, offering the most secure environment for collecting, storing, retrieving, modifying or auditing applications.
— Compliance and CFPB protection: Officials contend CreditPlus’ rules-based loan decision engine does not support decisions/terms that could be considered discriminatory or subjective. They added eLEND’s platform includes loan decision reporting and audit trail processes that can be made transparent to dealers, lenders and the Consumer Financial Protection Bureau.
— Industry Neutral Solution: The company noted eLEND Solutions’ credit platform, deal structuring decision engine and API platform is agnostic and compatible with any dealer desk tool and can be integrated seamlessly with all dealer websites and service providers, including inventory management and CRM providers, finance platforms and dealer management systems.
“We’ve witnessed two decades of innovation in online car buying, but the financing process remains outdated and low-tech. This lack of innovation has not only cost dealers time and money, but it has also seriously alienated consumers, who increasingly demand online transparency in everything they do,” MacInnis said.
“CreditPlus’ real, upfront loan terms are a missing piece of the car-buying revolution, bringing dealers more high-quality credit app leads, while slashing the current 3 to 4 hour sales process,” he went on to say.
MacInniss also highlighted consumer adoption of smart, online credit application solutions is remarkably high, according to a Dealer.com study using eLEND’s first-generation, interactive online credit application, Get Pre-approved in Seconds (GPIS).
The study showed that GPIS generated a 2,000-percent uplift in submitted credit applications vs. other standard long-forms submitted on dealer websites. The study mentioned that 50 percent of consumers who start the GPIS credit application complete it versus a mere four percent who complete the process with the traditional static application.
Furthermore, according to a recent IHS Automotive custom analysis of 1,400 dealers nationwide showed that of those consumers that submitted eLEND’s short-form credit application, 54 percent purchased a vehicle and those purchasing from the intended dealer saw average buy rates of 28 percent.
Performance was dramatically higher than the 6 percent to 8 percent closing ratio for standard third party leads, according to Cobalt.
Norm Reeves Honda Superstore general manager Brad Mugg said, “eLEND’s online credit application has been the best lead conversion tool for our dealer group for the past eight years.
“We expect that CreditPlus will drive even higher submit-to-sales conversions and will help us sell and finance more cars, with more speed, transparency and profitability than ever before,” Mugg continued.
CreditPlus is available to U.S. dealers immediately, and store managers can review a company demo here.
