At a time when more of the shopping, buying, and relationship building is taking place online, dealers are taking stock of their digital technology portfolio. Cox Automotive forecasts that half of all car buyers will engage with at least one digital tool during the purchase process—which could mean more profitability for your car dealership business. Paired with award-winning support and data continuity, backed by the security of an experienced partner, dealers are setting the stage for success with the following list of profitability drivers:
1. Performance Management
There are few experiences worse than signing a contract and watching a vendor disappear before the ink has had a chance to dry. A true dealership partner should be available when you need them (and often before) to see your business succeed. They should set performance benchmarks and goals — and then hold your team to them.
2. Five-Star Support
When you’re working with a trusted partner, having a good support system there when you actually do need it to minimize interruptions should go without saying. However, you should say it, and demand it, before you sign a contract. Take a look at the average response rates and customer satisfaction scores of any potential vendor you’re considering. Emergencies happen; what can you expect when things go south?
3. Easy-to-Use Technology
Complicated interfaces, multiple logins, a lack of available training resources, and redundant data entry are like the four horsemen of the apocalypse to your retention strategy. If you want to improve the morale of your staff, invest in technology that is easy to use and helps your people focus on building better customer relationships.
4. Digital Signing and eSignature Templates
Maximize time savings for both your employees and your customers with the flexibility of technology that allows for digital signatures and digital document signing. Go one step further with technology that allows your team to save their most frequently used documents so they can quickly and easily pull these up for eSigning whenever they need to finalize a deal.
5. Digital Payoff and Lien and Title Release
Faster title payoff and lien and title release give your dealership the opportunity to turn inventory faster and save on holding costs. Normally, this process takes 18 or more days to complete,1 leaving your dealership in limbo as you await the title or lien satisfaction documentation. Cutting this down to as fast as four to six days would not only reduce your holding costs, but it would also speed up your cash flow.
6. In-State Registration & Title
Today, more than 30 states are electronic registration and title (ERT) enabled – and most of the remainder have plans in the works to catch up. Using a technology solution for reg and title to process motor vehicle transactions from the dealership’s office is a boon for productivity and CSI scores.
7. Cross-border Registration & Title
Showcasing inventory online and using technology to facilitate the deal process means that out-of-state customers have been increasing each year. Having technology available to guide the dealership’s back-office staff through the myriad taxes and fees that vary by the customer’s state, county and municipality helps improve deal accuracy and make deal completion faster, easier, and more customer-friendly.
8. Save Costs and Speed Up Cashflow with eContracting
Dealertrack data shows that the average time in transit for paper contracts is five days. In the meantime, holding costs accumulate and cash flow is halted. When you switch to digital contracting, your dealership saves on physical labor and hardware costs such as printers, paper, shipping, and related materials. Plus, you could realize funding as quickly as the same day you submit your deal documents.
Your brick-and-mortar business isn’t going anywhere. But the digitization of the industry is bringing the consumer to you in new and exciting ways. Prepare for car dealership profitability with the precision tools, processes, and the right mindset to achieve success.
Set your dealership up for success today. Ask our team of experts for advice—learn more.
Sources:
1Based on average industry timeframe for vehicle title release and vehicle payoff process of 18+ days, as determined by 2022 Dealertrack data.
