Tag: digital document services

The Recipe for Funding Auto Dealers Faster

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The old saying is that too many cooks spoil the broth. But when it comes to finding ways for lenders to handle large volumes of paper contracts until the auto industry fully transitions to electronic contracting, some extra help in the “kitchen” can make all the difference.

Taking the measure of the industry

Today, the auto retail industry is rapidly ramping up technology to meet the consumer expectations. Research has shown that 83% of consumers want to complete at least one purchase step online, yet nearly 90% still prefer to sign their final documents at the dealership.

That leaves lenders with a small number of dealers submitting contracts digitally, while the majority still mail in paper contracts. This can cause lenders to develop two divergent sets of processes that can increase the time it takes to process and fund auto loans.

This situation creates some dilemmas for lenders. One is that any efforts to create parallel processes to maximize speed and efficiency for both electronic and paper contract processes will likely become unnecessary within the next few years as consumers and dealers become more open to fully digital deals.

Another consideration is that all dealers want fast funding, regardless of whether they submit contracts electronically or on paper.

The recipe for success

Efficient paper contract processing and funding requires carefully weighed portions of accuracy and compliance at every level of workload.

The ingredients include:

  • The ability to handle same-day processing of all funding packages
  • Be able to appear to dealers as an “overnight” funder
  • Consistent turnaround time no matter the volume of contracts
  • 99% data accuracy at all times
  • Balanced operational costs and staffing

The right partnership can provide all of those and more to help you provide a five-star experience for all your dealer partners.

Want to learn more? Connect with a Dealertrack Lender Solutions expert to discuss the best options for your business.

Stay Nimble and Accurate When Funding Loans

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Auto lending is a valuable service for dealerships, with 85% of new cars purchased in 2018 financed rather than purchased outright. Dealers require fast funding to stay cash flow positive, so it’s important for lenders to strive for the quickest possible turnaround.

Every day, lenders must perfect the juggling act of staying competitive through speedy funding while still focusing on accuracy and compliance. But if you think of day-in-and-day-out contract processing as juggling sandbags, peak loan volume months are more like juggling torches.

That’s when the combination of digital and paper contract processing can strain the resources of even the most efficient lending operation and its staff. When you’re facing a significant increase in volume, it become harder than ever to maintain compliance with state and federal regulations while trying to speed up data entry without introducing errors.

Finding the balance between accuracy and speed

Before you can maximize funding speed, it’s important to figure out how and where your processes might be slowing things down. When it comes to processing paper contracts, most lenders find that manual data entry, validation and storage of documents are where things get off-kilter.

Working with a reliable technology partner to handle these tasks is a cost-effective way to increase your speed to fund without sacrificing accuracy or compliance.

Want to learn how? Download our eGuide.

Expedite Contract Processing Regardless of Workload

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eContracting has made it so indirect auto lenders can process contracts and fund their dealers faster. Unfortunately, many dealers haven’t given up the paper contracting habit yet, so lenders must find ways to beef up their contract processing on two fronts.

It can be a challenge for lenders to deliver faster funding for paper contract packages, especially if their in-house operations are set up for a certain level of processing volume.

Lending institutions can find themselves understaffed for peak car buying season, but reluctant to scale up permanently knowing that their loan volume will ebb and flow. Still, lenders must find a way to receive contracts, accurately enter all the data into their system, finalize the funding package, get the package through review and approval, and store all of the paperwork for the appropriate period.

The resources required for this process vary depending on the size of the lender, but the workload fluctuates regularly either way.
So how can a lending institution maximize their resources to keep loans processed efficiently?

One solution that many lenders turn to is a partnership with outside experts who can handle the contract submission workflow and help lenders stay flexible and improve their efficiency and profitability. This support team can facilitate both paper and eContract processing to give lenders optimum workflow year ‘round.

Want to learn more about optimizing your operations to deliver better dealer service? Download our eguide or schedule a no-obligation 1:1 consultation with your Lender Solutions Specialist today.

How Lenders Can Get the Lion’s Share of their Dealers’ Loans

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What’s the number one way for a lender to add value for their dealer partners? Faster funding.

In today’s automotive marketplace where profit margins are crunched and sales have plateaued, auto dealers are looking for ways to free up cash flow and preserve their bottom line. Naturally, they prefer to work with lender partners who can be part of the solution.

Building stronger dealer relationships

According to recent industry figures, around 85% of all automobile purchases are financed. Dealers rely on the cash flow from these deals to keep their inventory numbers up so they can continue selling cars. Lender partners that are fastest to fund help keep this cash from “floating” on their dealers’ books and free it up to keep the dealership running smoothly.

Supporting both paths: paper and digital

eContracting is slowly gaining ground with more progressive dealers, but the majority of dealers still rely on paper contracts and must overnight their funding packages to lenders. Lenders that can process contracts and fund dealers the very next day – regardless whether the contracts are digital or paper – have a decided advantage.

There are several common obstacles that make it difficult for lenders to achieve consistent next-day funding speed with paper contracts, including speed of data entry, resource gaps during peak volume times, and the inability to increase speed without comprising accuracy.

Available technology solutions can address all of these obstacles and allow lenders to confidently provide consistent funding speed for their dealer partners.

Ready to optimize your paper contracting operations and add value to your dealer relationships? Download our eGuide today!

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.