Consumers, Dealers Seek Greater Transparency Through E-Contracting
Consumers and dealers alike increasingly prefer the transparency and fast funding that comes with e-contracting as lenders who offer the service scored “considerably higher” on the J.D. Power 2018 U.S. Dealer Financing Satisfaction Survey.
Dealers scored captives 65 points higher on average while non-captives added 52 points to their overall score when e-contracting options were provided to their partners. The majority of dealers — 59% — cited faster funding as the top reason they desire e-contracting.
Consumers, on the other hand, want to know more about where their loan is coming from, James Houston, senior director of automotive finance at J.D. Power, told Auto Finance News.
“What we are currently seeing in the marketplace is a trending switch to say, ‘I really want to start to interact before I go to the dealership,’” Houston said. “‘I want to maintain or manage my financial transaction outside the perusal of the dealership, I want to be preapproved, and I want to know my terms and conditions.”
Lenders have tried a variety of ways to get information to the consumer faster, such as a jacket folder delivered by the F&I manager or attaching information to the contract. One way lenders can ensure a better customer experience is by communicating to the dealer partner that they build brand loyalty when a consumer has a positive finance experience.
Lenders can also reach out to consumers who are already in the portfolio and make them “aware of who you are, what you do, and why you do the things you do prior to the finance experience,” Houston added.
