Tag: digital contracting

Improving On Your Paper Contracting Workflow

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When it comes to switching from paper contracts to eContracting or digital contracting, some dealerships have a hard time letting go of the workflows that they are used to. Even when they realize that their paper contract workflow is full of disruptions, inconveniences and expenses, it takes a mindset change to make the switch.

Let’s take a look at some of the ways a digital contracting workflow improves upon the paper process.

A place for everything and everything in its place

With paper contracting, you have piles of paperwork that must be printed as multiple copies and kept organized in paper deal jackets.

Digital Contracting on Dealertrack uniFI is designed to integrate with your DMS to minimize data reentry that can lead to errors.  It makes the contracting process more efficient by placing all documents in a single electronic deal jacket.

Need to add the customer’s drivers license? Just snap a photo on a mobile device and upload it to the deal jacket. Is the customer purchasing F&I products? Those contracts are in the deal jacket as well. Not sure what documents the lender requires? There’s a live funding checklist to make sure they’re all there before you submit.

Let’s not do this again

How often does your dealership end up re-contracting due to a missed signature or a calculation error? There are manual ways to make sure your contracts are complete and accurate before you submit them – we’ve heard of a dealership that had three different managers review each deal package. But that’s a time-consuming and expensive method to ensure that the contract is correct and ready to be sent to the lender.

With digital contracting, a real-time error display alerts you to any mistakes as you enter data. A verification step ensures that everything is signed before you submit the full package to the lender. No need to have your managers take up valuable time checking and double-checking, which makes them more available for customers.

Fast-forward to the good part

Test drives: fun. Taking delivery of a new car: exciting! Signing paperwork: heavy sigh.

So many steps of buying a car are legitimately positive for customers. However, when a car buyer is faced with a seemingly endless series of papers to sign, it can leave them frustrated and less than excited about their purchase.

But digital contracting smooths out the contracting stage and makes it feel like less of a chore for your customers. Contract review and digital signing can be done on whichever device works best for your process, either in-store or remotely. And sign-and-tap functionality to auto-fill signature fields leads to a faster signing process and helps ensure that you never miss a signature. That gets your customers to the best part of the purchase that much more quickly and helps maintain those positive CSI scores.

Want to know more about how Digital Contracting on Dealertrack uniFI can enhance your workflow? Let us show you!

4 Reasons Your Dealership Should Be Digital Contracting

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We all know that digital contracting is the wave of the future and that its big-picture benefits include speeding up funding, increasing accuracy and compliance, and virtually eliminating re-contracting. But how about the everyday improvements you’ll enjoy when you use less paper in your contract process?

1. No one’s ever gotten a paper cut from an iPad

Let’s face it: paper is a hassle for you and your customers. You have to make sure you have every document with the copies collated in the right order. Do it correctly and all your hard work will be greeted by heavy sighs when your customers see a giant stack of paperwork in front of them when all they want to do is drive off in their new vehicle.

If there’s a mistake, all that effort goes to waste and you have to print even more copies and start over from scratch.
Digital contracting has the advantage of being mobile, so you can use a tablet to get signatures anywhere in the dealership. And it puts all of your documents in one place with no need for hard copies.

2. ‘PC Load Letter’? What does that even mean?

Then there are the printers. They’re fine when they’re working properly, but it never takes long before you have to clear a paper jam or try to troubleshoot the connection from your computer. Sometimes you can handle it yourself, but other times it takes an expensive repair call and frustrating downtime before you can start printing again. Even routine replacement of an ink or toner cartridge can turn into a messy ordeal – and those supplies are costly.

With digital contracting, your battle with the printer comes to an end. You gather electronic signatures and all contract documents are securely sent to the lender online – no paper needed.

3. Wide open spaces

How much square footage at your dealership is taken up by filing cabinets? It may be a while before digital contracting completely replaces paper, but imagine how great it will be to reclaim that space for other uses!

Paper files are bulky and retrieving old files can be a challenge. Digital contract data can be stored in a single “virtual” deal jacket in a way that’s highly secure but easily accessible when needed. Plus, electronic transactions are encrypted and more secure than sending paper in the mail, so customer data is protected throughout the process.

4. Stay right where you are!

Being steered to a desk to tackle a stack of paper contracts puts a dent in any customer’s excitement about their purchase. With new remote signing technology, you can bring them a tablet to review and sign their contract from the comfort of the showroom or even the driver’s seat of their soon-to-be new vehicle. A car buyer can even use their own device to read over the contracts and sign from home.

With the ability to upload stips and deal documents, add signature and date fields to create eSignable forms, and set up a secure connection to a mobile device, you can create a single signing session for your customers no matter where they are.

The future is now
Digital contracting offers a better connection with lenders, less paperwork, a more flexible customer experience, and faster funding. The best time to get started is now!

Learn more about how your dealership can start benefiting from digital contracting today.

How eContracting Reduces Data Re-Entry

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You’ve probably heard that going digital with your contract process helps increase accuracy and improve efficiency. So, how exactly does it do that?

The key is integration between dealership systems.

Technology + connection

Research shows that the average dealership uses six or more technology systems in their workflow. If your back office staff has to re-enter data from other systems to complete each eContract – switching back and forth between screens and re-typing customer and deal information – several things could happen:

  • A customer’s name, address or date of birth could be re-keyed incorrectly.
  • The process would take longer than if the information flowed from one system to the next.
  • Errors can lead to re-contracting and subsequent delay in funding.
  • You’d be adding to your customers’ wait time and their frustration.

Integrated technology systems allow customer and deal information to flow more smoothly from lead to contract with less duplicate data entry. That means more accuracy and efficiency for your dealership and a better experience for customers.

A seamless upload

It’s important to find a partner that can provide dealer-level mapping from your DMS. Because each dealership is unique and each lender has different requirements, you want to be able to import data in a way that’s tailored to your specific needs.

With the right data mapping in place, your dealership will gain credit application and F&I process efficiencies in addition to eContracting workflow improvements.

Ideally, you want to choose an eContracting solution that also supports the aftermarket portion of the transaction. That way, you can digitally submit the contract for the entire deal, including F&I products.

Fast deal finalization

Minimizing data entry at the contract stage helps you finalize the deal more quickly. That added efficiency is good for customer satisfaction and it helps make your team more productive, which frees up time for them to help more customers.

Sign and tap eSigning

Simplify the signing process and never miss a signature. eSigning gives you and your customers flexible and convenient signing options in-store or remotely, and ensures that each document has been signed before you can move to the next. That helps eliminate one of the most common contracting errors that can lead to re-contracting.

Click to learn more about DMS integrations for Digital Contracting with Dealertrack uniFI.

3 Reasons Lenders Appreciate eContracting

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Not sure your lenders are interested in eContracting? Cox Automotive research shows that the need and demand for eContracting efficiency is high for both dealers and lenders. In many cases, lenders are waiting for their dealers to get set up for eContracting so they can all benefit.

Here are three reasons that lenders appreciate eContracting solutions:

1. Improved Accuracy

The last thing lenders want to do is reject the funding package a dealership sent them because of errors or missed signatures. More and more lenders are eContracting with their dealer customers because the technology helps reduce errors that can lead to re-contracting.

When you’re working with multiple systems, re-typing and re-entering data, there’s a possibility that human error can lead to inaccuracies. Integrations with other dealership systems help eContracting platforms boost contract accuracy by reducing or eliminating the need for data re-entry.

eContracting solutions are also designed to verify data entry in real time, flagging potential errors and missing signatures before the contracts are even submitted.

Additional integrated functionality can make it easier for a dealership to submit accurate contracts. For example, lender checklists help ensure that the contract package is complete with digital copies of all required forms upon submission.

When the lender needs more information for funding after the initial submission, eContracting can even support uploads of trailing documents to keep the review process moving smoothly.

2. Faster Processing

With eContracting, contract data can be pushed directly into the lender’s loan origination system (LOS), which speeds up the review process and allows for faster funding. Compare that to many manual processes where documents must be sent to the lender by a combination of overnight delivery and fax, which takes an average of five days in transit.

Ideally, you want a complete digital funding package that keeps all deal documents together, saving the lender the time they would have to spend matching documents that arrived by separate methods.

With eContracting, the lender gets all of the contracting documents immediately, which gives them the capability to fund as fast as the same day.

3. Better Service

Finally, lenders are eager for dealers to submit contracts digitally because it gives them the opportunity to provide faster and better service, which is key for strengthening their partnership. They understand that improving a dealership’s cash flow is vital—and faster loan review and funding helps accomplish that for their dealer customers.

See the growing list of lenders  to learn how Digital Contracting on Dealertrack F&I helps dealerships get faster funding from lenders.

4 Ways eContracting is Easier Than You Think

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When a dealership is planning to introduce new technology, the initial worry is often, “Will it be a hassle?” Here are four reasons that adopting and using eContracting can be easy and beneficial for dealers.

Setup is simple

As with most technologies, eContracting setup is “one and done.” There’s minimal setup and easy integrations with other systems. The daily hassle of paper contracts is much more of an obstacle for dealerships than the minimal setup required by eContracting platforms.

Multiple devices can support eContracting

It’s important to know what hardware is necessary for the eContracting functionality you plan to use. Some providers require proprietary devices for contract review and signing—or otherwise limit your technology options for using their solution. Choosing a hardware-agnostic solution will allow you to work with the devices you already use every day, which will save you time and money.

Lender form changes and updates can be done automatically

When using DMS for paper contracts, there are licensing and programming fees. eContracting has the potential to eliminate those fees, as the latest approved forms from lenders can be added at no charge. With no paper programs, you can avoid paper licensing – and always have access to the correct lender version of every form.

A digital workflow adds efficiency and convenience

Workflows for paper contracting processes are filled with everyday hassles where customers must sign paper form after paper form, all of which are then overnighted to lenders – sometimes sent back for corrections, then shipped again – and finally, securely filed.

eContracting offers a streamlined workflow that is easy to learn and use. The benefits are immediate, with file cabinets full of paperwork replaced by digital deal jackets that include every document needed to complete a deal. Some eContracting platforms even include aftermarket contracts.

You’ll find that integration with other dealership systems means less data re-entry, which helps prevent the introduction of errors. That means eContracting helps dealerships submit accurate contracts quickly and easily, with no more back-and-forth with lenders.

Whether your dealership is considering a switch to eContracting or looking to maximize the benefits of your current eContracting platform, the more streamlined processes of eContracting can help you leave many of your current hassles behind you.

Click to learn how your dealership can take the hassles out of contracting with Digital Contracting on Dealertrack F&I.

Less Paperwork Equals More Customer Satisfaction

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We live in a world where purchase transactions keep getting faster and more convenient. Consumers are accustomed to ordering coffee with an app and having it waiting when they arrive, getting next-day or even same-day delivery from Amazon Prime, and pulling up to Target or Walmart to have merchandise they ordered loaded directly into their cars.

When these same consumers visit a dealership, they fully expect to discover a technology-enabled sales process that will be an improvement over what they experienced with previous purchases. The good news is that dealers are responding to this expectation, with 69% of franchise dealers adding at least one digital step due to COVID-19 according to the Cox Automotive Digitization of Online Retail Study.

How does that help? The same research uncovered that the number one benefit for car buyers of a digital process is saving time. The average amount of time a customer spends at the dealership has been dropping steadily and they would prefer to spend their time on enjoyable activities like test drives. However, the 2020 Cox Automotive Car Buyer Journey study found that nearly half of their time is spent on negotiations and paperwork, the part of the process they dislike the most.

Despite 92% of car buyers researching their vehicle purchase online, many dealerships still do not offer customers the option to sign their paperwork digitally. So even when a customer has researched and started much of their deal online, most still face an outdated paper and wet signing process before they can take delivery of their vehicle.

The pile of paperwork comes out near the end of their purchase process, which risks lowering CSI scores when the lengthy contract review and signing process takes the customer’s positive car buying experience and adds frustration.

One of the drawbacks of the paperwork stage is that it’s where any inefficiencies in the process start to snowball. If a dealership has unconnected systems that force re-entry of customer data, it’s way too easy to introduce errors and create a contract that the lender may not be able to process on first submission. If that happens, it can delay the transaction and inconvenience the customer even further.

Using a combination of desktop and mobile technology to take paper out of the sales process can make a significant difference to the customer experience. Just starting with digital review and signing of contracts can make a significant difference in the customer expereince. eContracting helps eliminate those intimidating stacks of contracts and replace them with convenient review and sign-and-tap functionality. Additional digital solutions including mobile data collection and menu technology to present aftermarket products can provide a more customer-friendly approach overall.

The digital deal addresses many of the frustrations car buyers have with the car buying process. And it’s better for dealerships as well. In fact, 77% of franchise dealers that have enabled digital contract review and signing are more satisfied with their overall digital retailing experience.

Find out more about how Digital Contracting with Dealertrack uniFI is a customer-friendly and dealership-friendly solution.

Best Practices for Remote Signing

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Dealerships have made impressive strides in responding to the restrictions imposed by CDC guidelines and social distancing rules by adopting tools that allow them to work with customers remotely. One vital part of that process is remote contract review and signing.

With a growing percentage of deals starting online, remote signing followed by at-home delivery are logical next steps to ensure convenient and socially distanced auto purchases for consumers.

Here are some important considerations for successful remote signing:

  • Make sure your internet connection is secure – An important aspect of compliance is protecting customer and deal data. Especially if you’re working somewhere other than the dealership, be sure your wi-fi signal is password protected.
  • Begin with some show-and-tell – Start by having a conversation with the buyer to make sure they have access to the proper technology required for the contract review and signing: a desktop computer, laptop or tablet with an up-to-date browser that’s connected to the internet. Then explain the eSign process, including the need for their consent, and talk through how the signature capture process works.
  • Verify the customer’s identity – When you’re dealing with customers remotely, it’s more important than ever to make sure every customer is who they say they are. Using a compliance solution like Dealertrack Compliance during the deal process for vital Red Flag alerts and OFAC checks can help – and can also provide out-of-wallet questions if needed.
  • The next best thing to face-to-face – We recommend using video conferencing, Facetime or another video chat app to help make sure you’re dealing with the right person before you connect to their device for contract review and signing. Video is also helpful for walking the customer through the review and signing process so you can see their screen and provide direction as needed.
  • Record the signing ceremony – Choose a video conference platform that allows you to record the signing session for the purposes of ID verification and fraud risk mitigation. Tell the customer you’ll be recording and get their permission before you begin.
  • Give the customer time to read the fine print – Before the customer signs, make sure they review the contract. They can do it on the screen, but you should recommend that they use the print or download functionality to create their own copy.
  • Follow delivery protocols and best practices1 – The vehicle should be delivered as soon as possible after contract signing. When you arrive at the customer’s location,2 start by validating the buyer’s identity by matching their driver’s license to the information on the contract.
  • Don’t renegotiate upon delivery – Do not negotiate terms and conditions of the deal at the consumer’s home, as this could invoke a three-day rescission period that allows the customer to cancel their transaction.
  • Disinfect high-touch areas of the vehicle – Relieve any customer concerns by cleaning the vehicle in accordance with CDC guidelines and telling the customer about your sanitizing procedures.
  • Finalize all documentation – If there are any remaining DMV or dealer documents, have the customer complete them now. Use a tablet to photograph and upload any remaining stips and trailing documents. Be sure to have the customer sign the delivery receipt and keep it for your records. And don’t forget to deliver the final signed copy of the contract to your customer.

If a customer will be at the dealership to sign their contract and take delivery of their vehicle, you can still give them the option of bringing in their own device for signing. That can help to ensure social distancing and alleviate any concern the customer may have about handling shared devices.

Dealertrack assisted Remote Signing is available for dealerships with Digital Contracting on Dealertrack F&I. Click to learn more about getting started with assisted Remote Signing at your dealership.

The 2022 Dealertrack Compliance Guide includes a new chapter on automotive eCommerce sales. Download the Compliance Guide here.

.1 In locations where permitted by federal, state and local COVID-19 ordinances, consider offering at-home delivery and observe CDC protocols during vehicle delivery.
2 Customer must take delivery in the state they are in as out-of-state deliveries are not available at this time.

3 Reasons Lenders Shouldn’t Wait to Start eContracting

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Still wondering if you should be using eContracting for your auto loan originations? Let’s examine some of the reasons lending institutions should already be using eContracting or digital contracting.

1. eContracting is the new standard

It’s no longer a matter of if you should be using eContracting: the industry has already hit the tipping point and it’s now a matter of when you’ll start trying to catch up with the early adopters. Lenders who use eContracting are already funding 2-3 days faster on every transaction and building dealer loyalty in the process. Which leads us to point #2…

2. Your dealers want eContracting

Dealers are adopting eContracting in record numbers and demanding that their lenders participate. In their efforts to counter margin pressure, dealerships are shifting their workflows to gain productivity and efficiency. They also value fast funding — and Cox Automotive dealer/lender research shows that it’s one of the top three reasons dealers choose a lender partner. Finally, there is customer demand for a faster and more efficient purchase process, which can be facilitated by eContracting and electronic signing.

As every lender knows, partnerships with dealers are measured by service, so helping your dealers improve their workflow and funding them as quickly as possible is exactly the kind of service that can help improve your relationships.

3. The paperless deal offers operational efficiencies

The industry is headed toward the paperless deal to improve efficiency and reduce overhead costs for dealers and lenders alike. eContracting can reduce days in transit from the dealer to the lender from an average of five days to just one, and its built-in accuracy features can help reduce returned contracts and re-contracting by 80%.

The paperless deal saves dealers from having to reprint forms that change, eliminates shipping costs, and allows for digital document storage that frees up office space while helping to keep forms available in case of audit.

Taking another evolutionary step further, going paperless leads to enabling lights-out funding. With eContracting doing the validations and eContracting producing electronic documents, the next opportunity is to use technology to auto-fund contracts the way loans are auto-decisioned today.

Want to learn all the reasons why now is the time to start eContracting with dealers? Join us at AFSA on Thursday, February 13th where Andy Mayers takes the stage to discuss Digital Contracting during the Technology Advancements program—or stop by booth #104.

What Dealerships Need to Know About Electronic Signatures

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In the year 2000, Tiger Woods became the youngest golfer to win a career Grand Slam, the original Mini ceased production, and the U.S. passed the E-Sign Act (Electronic Signatures in Global and National Commerce) ensuring that electronic signatures can be valid and legally binding.

Even though more than 20 years have passed since then, confusion about the legality of eSignatures remains. In this post, we’re going to work on clearing up some of the common misconceptions around electronic signatures.

Federal Laws Regarding eSignatures

The E-Sign Act states that a contract or signature, “may not be denied legal effect, validity, or enforceability solely because it is in electronic form”. Basically, the E-Sign Act gives eContracts and eSignatures the same legal standing as paper records. It also says that electronic records count as information “provided in writing,” as long as a consumer agrees to conduct their transaction using electronic means.

The E-Sign Act also requires lenders to keep accurate and complete electronic records that can be accessed and reproduced as needed by people who are authorized to access them.

You can click here to read the E-Sign Act if you want to know exactly how it’s stated.

In 2010, provisions of the Uniform Electronic Transactions Act (UETA) helped ensure that each state aligned on recognizing the legality of electronic contracts for business and commercial transactions. As of August 2021, New York State has not adopted UETA, but they have other laws recognizing electronic signatures for lenders.

But What About California?

When California adopted UETA, it made an exception for auto signing. However, California later adopted E-Sign, which supersedes UETA. Currently, every major provider and lender includes California in their eContracting platform.

Please consult your lawyer if you have doubts or questions about the legality of eSigning in your state.

What Are the Advantages of eSigning?

Giving electronic contracts and signatures the same legal status as their paper counterparts offers significant benefits for dealers, customers and lenders:

  • Accuracy – eContracting helps ensure that contracts are complete and more accurate before the customer signs and the dealer submits them to the lender. It also helps eliminate missing signatures, which is one of the top reasons that funding packages are returned as incomplete and subject to re-contracting.
  • Compliance – With the system flagging any potential issues, a dealership can be more confident that each contract is compliant with state and federal consumer protection regulations. Customers are protected by a documented process that ensures they know what they’re signing before they sign and that they’ve provided affirmative consent to complete their transaction electronically.
  • Customer Satisfaction – The ability to review and sign documents electronically greatly enhances the customer experience. Rather than flipping through dozens of pages one-at-a-time, eSigning offers customers the ability to seamlessly and efficiently move through the car buying process. 2021 Cox Automotive Car Buyer Journey research shows that heavy digital buyers who completed more than half of their purchase activities online, saved nearly 30 minutes by handling negotiations, contract review and signing digitally. These buyers had more overall satisifaction with the shopping experience, which can help to preserve the dealership’s CSI score and improve customer loyalty.
  • Faster Funding – The lender receives data that has already been checked for accuracy directly into their loan origination system (LOS), which not only maximizes data security but allows for loans to be processed and funded more quickly.

How Widespread is eSigning?

Industry-wide, lenders have purchased, securitized and funded billions of dollars in eSigned retail and lease contracts to date in all 50 states.

Are All eSignatures the Same?

Dealertrack eSignatures are accepted by all major lenders participating in eContracting on our platform in every state. In addition, there are aspects of our technology and signing process that help ensure eSignature authenticity and provide the authoritative copy of each contract in ways that some other providers do not. We can also offer a better customer experience with “tap and sign” functionality that allows buyers to sign one time per signing session and have all subsequent signatures pre-fill with just a tap.

If you’d like to learn more about the advantages of Dealertrack Digital Contracting, please click to request a demo.

Faster Paper Contract Processing for Lenders

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The car buying process is getting more digitally connected with each passing year, yet most dealerships are still finalizing purchase contracts on paper. During this time when contract processing is a hybrid of traditional and paperless, it’s still possible for lenders to take some steps that will help them prepare for fully digital contracting.

The value of digital contract processing is easy to understand when you consider the extensive handling and manual data entry that lenders must undertake to process paper contracts. It can take days or even weeks from the time these contract packages ship out from the dealership before they make their way through lender review and approval for funding.

Dealertrack Digital Document Services provides a great solution to bridge the gap between paper and digital for lenders and speed funding. Take a look:


Savvy lenders understand that faster funding is the name of the game for supporting their dealer customers’ need for cash flow to help them stay profitable.

Utilizing Dealertrack as a technology partner helps lenders avoid the time-consuming tasks involved with data entry, validation and storage of paper contracts. Lenders gain efficiency to fund faster and keep dealers coming back for more.

To learn more, download The Lender Guide to Faster Paper Contract Processing.