The automotive loan approval process has improved greatly over the last decade. With online processing and configurable loan origination software systems, lenders and their technology partners are helping dealers sell cars more efficiently and create more satisfied customers for the long haul.
The loan funding processing, however, has lagged behind and is just now catching up.
What are the top three funding pain points for auto dealers?
- Speed of funding. Dealers that overnight loan documents have to wait for lenders to receive them, physically review them for accuracy and validity, and manually input the information from the contract before receiving their funds. The quicker the documents get to the lenders and the information is verified, the better.
- Cost, security and timing of shipping. Dealers that overnight are at the mercy of a shipping service. If the cost of overnight shipping rises, dealers have to pay it. If the shipping service doesn’t run on weekends or evenings, they have to wait until the next business day. Lost or stolen documents can further delay the funding process.
- Cost, security and storage of legal documents. Dealers that create duplicate copies of legal contracts and other supporting loan documents and physically retain them incur costs for printing, paper, file folders and storage space, and have to question: Where will it all go? How long should they keep it? Are the copies secure?
Dealers WIN! defi DIGITAL streamlines the funding process and eliminates dealers’ top 3 pain points.
Lenders WIN! Lenders using the defi SOLUTIONS LOS and defi DIGITAL service can speed up the funding process while reducing shipping and wait times.
- Loan documents are sent via a secure scanner directly from a dealer to a defi lender. The documents are received within hours versus days. No manual entry of contract information is required. defi DIGITAL takes care of that for you.
- Paper, printing, and shipping are NOT required. No lost documents, shipping costs or timing issues.
- The dealer and lender receive electronic copies of all loan documents. Documents are electronically vaulted for easy access and future reference.