Auto Remarketing Podcast Summary: Dealertrack on Handling Consumer Demand for Financing

Auto Remarketing podcast host Nick Zulovich is joined by the Senior Vice President of Dealertrack, Cheryl Miller, to discuss some of the issues that car dealerships face while trying to meet customer demand and increase satisfaction when financing. They touch base on how Dealertrack is working towards fixing these issues. Lastly, they discuss the near future for Dealertrack.

What challenges do dealerships face in meeting customer demand when it comes to financing a vehicle purchase?

Dealerships use 6 different financing systems to make a car deal. This process often takes too long, approximately three hours. In addition, these systems are complicated and error prone. This process is often frustrating for dealers and buyers, and it tends to lead to a less satisfying experience.

How has Dealertrack’s new uniFI platform solved these problems?

The feedback from dealerships is that the platform is easy to use and decreased time spent by around 30%. The uniFI platform combines these 6 systems into one “deal jacket” to streamline the process. So far uniFI has improved the workflow in its young life.

What changes are we seeing about Auto Financing in 2019?

Electronic contracts are more popular than ever before. Dealerships are looking to digital contracting in order to go paperless and expedite the experience for buyers and lenders. In addition, Dealerships are looking to expand outside of their local markets as a result of lower projected car sales figures and rising interest rates. The process of registering vehicles in other states is time consuming for some dealers. Dealertrack is applying their technology solutions to help these aspects of the buying process and improve the experience for all parties involved.

The full episode of the Auto Remarketing Podcast can be found HERE. Download and subscribe to the Podcast on on iTunes or on Google Play.

Auto Remarketing Podcast Summary: How Successful Dealers Smooth Friction Points for Buyers

Nick Zulovich sits down with Rudi Thun, chief operating officer of Roadster, to discuss some of the biggest friction points when buying a car and how Roadster is making strives to smooth them out by working with consumers and dealerships. The two also discuss the stages of Roadster’s implementation, its impact on employees, and upcoming developments.

What are some of the biggest friction points in buying a car today?

The car-buying process is too slow, expensive, and remote. Customers spend 2-5 hours in a dealership, and often pay extra for the 5-7 people involved in the deal. Roadster wants to streamline the process, making a win-win for both customers and dealerships.

What are some of the stages that Roadster has evolved through dealing with dealerships?

From the start, Roadster was a direct-to-consumer service focused on the consumer experience. Over time they decided that it would be easier and more efficient to provide this software to dealerships at a monthly fee. Customers want a digital market where they can research, but also need brick and mortar stores with knowledgeable employees to help along the process.

How important is it for dealerships to have these knowledgeable personal at dealerships?

This software will help make car buying easier for customers and dealers, but you will always need to have these personnel there to help move the process along, perhaps with less dealership flair.

What developments are in store for Roadster?

Roadster is trying to make implementation of its software easier and quicker for dealerships. They also want to make the financial aspect easier and more automated. They want to ensure that a shopper could make a decision at any time or place.

The full episode of the Auto Remarketing Podcast can be found HERE. Download and subscribe to the Podcast on iTunes or on Google Play to stay on top of the auto finance industry.

How does using a capital provider save dealerships resources, maximize in-office/dealership staff?

(i.e., let the professionals deal with the loans, but local owners can still service the account)

When a dealership owner decides to pursue the BHPH business model, it’s with the understanding of the risk and the quality of credit their customers are likely to have. It’s not just common sense but also basic knowledge of the business that the deals you create for car buyers must take the possibility of default into consideration. Contracting risky buyers is simply part of the subprime and nonprime auto business and the anticipation of collections and defaults on non-paying customers is factored into the equation.

That doesn’t necessarily mean that’s how a car dealership wants to be spending their time and resources. There are many reasons to separate debt collections from your showroom floor. Not only does it look and sound bad to new and good-status customers, it is a role that an employee (and sometimes, an entire department) needs to commit to. These same people need to be well-versed in the laws and regulations of your area need to avoid any infractions or risk being fined or even shut down.

Lastly, the majority of independent dealerships don’t have the technological and legal/financial resources to cost-effectively manage and services a large volume of contracts. This essential part of the business operations of a dealership becomes a burden and ever-growing risk if it’s not handled properly from day one. Glenview Finance has a high level of specialized service for these specific kinds of dealerships and deep experience in the auto finance industry which makes a partnership with us all the more appealing to owners.