Interest rates continue to increase the cost of buying a vehicle. Dealers and finance companies are well aware of concerns about affordability, consumer access to credit and softening new-vehicle sales.

Because of that, dealers and finance companies are exploring new methods to make the auto financing process more efficient to save time and money. Working to help ease concerns with that process, DealerTrack notes that the payoff and title release process is a main area in which money might slip through the cracks.

The company highlighted that its Accelerated Title product can provide the ability to reduce payoff and title release from what it says is an industry standard of 12 to 18 or more days to as few as four to six days.

Finance companies spend approximately $20 to $25 per title released on back of the title lifecycle labor costs such as overnight postage, short-pay write-offs and over-pay refunds, according to DealerTrack data. All of those costs mean a finance company that releases 40,000 annual titles incurs almost $1 million in costs. The company says outdated tools, manual procedures and slow workflows are the reason for those costs. How can lenders and dealers overcome those costs? By working closely with their third-party technology providers to build partnerships, make more of their processes digital and make workflows connect better for greater accuracy and speed.

Obtaining a payoff quote, handwriting and mailing checks overnight, and then waiting for delivery of title is a time-intensive process. The undesirable result? It can often mean incorrect payoffs, delays in title receipt and high processing costs. DealerTrack notes that its Accelerated Title product can effectively speed up the funding “lifecycle” by as much as 70 percent.

“There is a lot of value to be gained by improving vehicle payoff and title release process,” Cheryl Miller, senior vice president and general manager for Dealertrack F&I and Registration and Titling Solutions, said in a news release. “Through Dealertrack Accelerated Title, we’re working to cut inefficiencies and deliver an integrated workflow between dealer and lender that increases transparency and consistency for a faster, streamlined title release process.”

Dealertrack notes that Accelerated Title is one of its lender products that help lenders improve efficiency while strengthening dealer relationships. Accelerated Title features more than 40 lenders, which the company notes gives dealers more control over their transactions.

Dealertrack states that the fully electronic process can provide finance companies with title tracking and reporting 24 hours per day, seven days a week.