Tag: Registration & Title

Why Use An Out-of-State Reg & Title Solution?

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Your dealership’s online presence has done its job and brought in a customer from several states away who’s been looking for a vehicle of the exact make, model, trim and color that you have on your lot. The deal goes smoothly, the transaction is almost done, and now it’s registration and titling time.

Because your dealership prides itself on customer service, you look to provide all customers with a hassle-free experience that includes reg and title work that saves from a trip to the DMV. But not all states are the same when it comes to deal closing.

Let’s face it: it’s nearly impossible for back-office folks at the dealership to know the ins and outs of registration and titling for all 50 states. Among different states you’ll find a wide variety of taxes, rules for categorizing certain vehicles, inspection requirements and exemptions, and insurance regulations. Each state has its own set of required forms that often include rules about who can sign them and when.

Even if you made a dedicated effort to learn about the hundreds of rules and forms needed to cover every state, you’d find it to be a moving target as regulations change and so do forms.

So, what can you do to provide a high level of service for every customer – including registration and title – and gain the CSI scores to show for it? Many dealerships are choosing to add 50-state registration and titling solution to their back-office toolkit.

With the right technology, your dealership can be prepared to welcome customers from anywhere in the country. Be sure to look for a solution that can:

  • Guide you through the necessary registration and title steps and transactions for each deal.
  • Compare deals side by side to help customers choose the option that’s best for them.
  • Identify and provide the exact documents that each deal requires.
  • Confirm data accuracy as you go along to eliminate the need for later corrections.
  • Progress deals quickly and give you the ability to monitor their status so you’ll know when they’ve been completed.

With a reliable cross-border registration and title solution in place, you can support your dealership’s commitment to customer service while gaining efficiency for deal completion and back-office productivity.

Dealertrack RegUSA® simplifies complex out-of-state deals for customers in any state. Find out how!

Expediting Title Processing Can Save Time and Money

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In our digital-first world, no one wants to wait for anything. So why does vehicle title processing still take so long?

In this article from Used Car Dealer Magazine, Kaitlin Gavin, VP and General Manager of Dealertrack Registration and Title Services and Sandy Moon, AVP Client Experience at NextGear Capital, explored some of the title processing technology solutions that can reduce waiting and save dealerships time and money.

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Improving Cash Flow with Faster Title and Lien Release

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Cash is king for any business, and dealerships are no exception. Even with solid reserves and good fluidity, better cash flow always helps with your dealership’s expenses and overhead.

So, how does faster title and lien release help with cash flow? Let’s take a look.

Immovable objects

Once you’ve invested in a trade-in, there’s going to be a period of time when the vehicle is basically an oversized paperweight until you can finalize the lien release and get your hands on the title.

In a few states, it’s illegal to re-sell a vehicle before you have the title in hand. Everywhere else, even if you do take a vehicle to auction without the title, Manheim data shows that your chances of selling it on first pass are about half what they would be if you had the title in hand.

Dealertrack data shows that the industry average payoff and lien and title release for a used vehicle is 12-18 days. That’s weeks where the cash you paid for a vehicle – and the cash you’ll ultimately get for reselling it – are tied up while your dealership spends hours chasing down titles and cutting checks.

All this time you’re also accumulating holding costs, including the overhead involved in storing the vehicle plus any interest if there’s floor planning involved. Meanwhile, you still need cash flow to keep taking in trades and covering payroll.

Turning metal into money

What if you could pay off trade-ins and get the title and lien release into your hands in days instead of weeks? Think about the cash flow boost you’d get from cutting two or more weeks off the time you need to wait before you can auction or re-sell a trade-in.

Dealertrack Accelerated Title takes the lengthy manual payoff and title release process and handles it with the press of a button. Instead of 12-18 days of cash stagnation while you wait for processing, you get your title and lien release back as quickly as 4-6 days.

That gives you the opportunity to consistently speed up your ROI for each used vehicle taken in on trade.

Want to learn more about this no-charge enhancement to your existing Dealertrack account? Request a demo today.

3 Reasons to Prepare for Out-of-State Reg & Title Processing

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Unless your dealership is on a state line, you can probably remember a time when out-of-state deals were few and far between. The internet has changed all that. Now, your next customer might be walking in the door after a cross-country road trip or a one-way flight.

Anything that makes sales increase is great, but is your back office prepared to handle registration and title needs for these customers?

Let’s have a look at some stats every dealership needs to take to heart:

1. 71% of car shoppers search for deals online before they visit a dealership

Today’s customers are less concerned with where your dealership is located and more interested in whether you can provide the vehicle they want. The key is to be prepared for expanding your customer base – and that includes providing the same registration and titling services that local buyers enjoy.

2. Out-of-state sales have increased by 28% over the past three years

Car shoppers aren’t just browsing online – they’re visiting other states and buying there. As more tech-savvy generations become the primary base of car buyers, it’s safe to say that this trend will continue to build.

3. Customers spend an average of 3+ hours at the dealership before delivery

Three or more hours at the dealership is already a long stretch and making it longer for out-of-state buyers risks your dealership’s CSI score. It can also lead to negative online reviews that may deter future out-of-state sales.

Are you ready?

The out-of-state buyer has chosen your dealership because you have a vehicle that meets their specifications closely enough that they were willing to put in extra effort to buy it from you. Now it’s your turn to make sure you go the extra mile for them.

It’s unlikely that your back office staff is familiar with the registration and title documentation and fee structure for all 50 states, but that’s where Dealertrack RegUSA comes in. This online tool will help you find out what information is necessary to meet state requirements, accurately estimate vehicle taxes and fees, and let you review state forms with the customer while they’re still in the showroom.

To learn more about how Dealertrack RegUSA can help you increase registration and title processing efficiency for out-of-state deals, read our ebook – or request a demo.

Sources:
1. and 3.  2017 Cox Automotive Car Buyer Study
2. 2017 Cox Automotive Research, Out of State Vehicle Registration and Titling Transactions

Add Confidence to Every Trade-In Deal

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When your dealership uses a traditional payoff and title release process for trade-ins, there can be a lot of built-in uncertainty. Between the amount of time it takes to receive the clean title (18+ days on average) and the payoff surprises that can result from being unable to see the title details in advance, you can find yourself taking several calculated risks from the time you accept the trade-in until you’ve sold it or put it up for auction.

Fortunately, there are technology solutions that can address those risks and increase your confidence whenever a customer brings a car to trade in. Let’s look at some of these risks and how technology solutions for expedited titling can help you eliminate them:

The Man (or Woman) of Mystery

A customer comes in with a trade-in, but without their title in hand. He says he’s the only person on the title and so you went ahead with the deal. Later you discover that there was a co-owner on the title, but you can’t reach the buyer and you have no idea how to get in touch with the other person. Without the co-owner’s permission, you have a vehicle you can’t sell – and maybe a pending lawsuit as well.

Now let’s look at that same scenario for a dealership with the right technology on hand. As soon as the customer presents their trade-in, you can use the system to see a copy of the title. You discover the co-owner right away and ask the customer about it. That gives them the opportunity to get the necessary permission to sell the vehicle or proceed without the trade-in. Either way, you’ve eliminated uncertainty and risk.

Payoff Back-and-Forth

When you don’t have access to an accurate payoff amount up front, your back office must deal with the back-and-forth of cutting checks and overnighting them to make it right – which adds time and expense to the deal.

Improved technology can provide the accurate payoff amount from the start, and ACH payment capability will save you from having to produce paper checks and pay to have them delivered.

Is It Time Yet?

Even using low-tech payoff and title release processes that take weeks, most dealerships will proceed with reconditioning, then retailing or auctioning a vehicle with their fingers crossed that the timing works out and there are no titling or payoff surprises looming.

When you have a solution set that includes expedited payoff and title release that takes days instead of weeks, access to online status updates on demand, and visibility into title details, you’ll no longer have to hold your breath and hope your inventory turn timelines work out.

How Confidence Pays Off

When you know you’ll have payoff and title release completed quickly and predictably, it can pay off directly by keeping a lid on the holding costs that affect your profitability. A 2016 Manheim Online Dealer Community survey found that having a vehicle sit on the lot costs dealerships an average of $32 per day. When you know you’ll be ready with a title in hand, you can take steps to merchandise each vehicle online or get it to auction more quickly to help ensure that it stays on your lot for as little time as possible.

Ready to gain more confidence in your trade-in deals? Learn how Dealertrack Accelerated Title can streamline your payoff and title release processes.

Reduce Holding Costs to Protect Your Bottom Line

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It’s been a great day at your dealership. You’ve been working hard matching buyers with vehicles and taking in a good number of trade-ins. Eventually you’ll sell those trade-ins to other customers or at auction, but first comes the payoff and lien and title release process. And if you’re doing the process manually, it’s going to take a while.

Dealertrack data shows that the average length of time it takes for payoff and lien and title release is between 12 and 18 days – or even more. That’s how long it takes to initiate the payoff, verify and finalize accurate payoff amounts, write and overnight checks, address any payoff surprises that surface, and make phone calls to lenders for title status updates and tracking information.

In the meantime, your holding costs are adding up. According to a 2019 NCM Group study, having a vehicle sit on the lot costs a dealer an average of $37 per day. When you multiply that by the number of trade-ins you bring in per month, the expense of holding costs quickly balloons into the hundreds and even thousands of dollars per year.

With Dealertrack Accelerated Title, your dealership can reduce payoff and lien and title release time from weeks to as fast as 4-6 days. In fact, it’s the only solution in the industry that can speed the process that quickly. It also allows you to track the status online to see when the lien sat release or title will be delivered, so you can show up better at auction and quickly move inventory off your lot.

Faster title payoff and lien and title release gives your dealership the opportunity to improve profitability with the potential to turn inventory faster for the vehicles you take in on trade, ultimately saving on holding costs.

Want to know more? Schedule a demo and we’ll walk you through the Accelerated Title process.

Why Each Deal Should Include Reg & Title Processing

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Every dealership is looking for ways to go the extra mile for customers. Not only do “above and beyond’ experiences improve CSI scores, they also increase customer loyalty and the likelihood of positive reviews, recommendations and referrals.

One finishing touch a dealership can provide for customers is to handle their state registration and titling process for them. Just imagine how happy your customers will be driving off in their new vehicle, secure in the knowledge that you helped them sidestep a long wait at the DMV.

Set Your Dealership Apart

Many dealerships still hesitate to take on the complexity of registration and title transactions, particularly for out-of-state customers. However, technology has advanced to the point where software solutions like Dealertrack RegUSA make cross-border and out-of-state registration simple and compliant.

Knowing that you have the potential to surprise and delight all of your customers with this final step of their car purchase, it just makes sense to include registration and titling in your deal process.

Creating Loyal Customers Helps Your Bottom Line

Providing an exemplary customer experience is valuable for much more than just CSI scores. Mid-year 2022 data from NADA shows that the average customer acquisition cost per new vehicle sold was $695. Research from John Wiley & Sons has shown that it costs ten times as much to obtain a new customer as it does to retain an existing customer.

In today’s margin-compressed reality, it’s important to handle every single customer with the utmost care. Dealerships are making good strides in getting repeat business, with a trend toward more buyers returning to dealerships where they have previous experience. Taking care of their registration and titling for customers can be the icing on the cake that builds more repeat business.

Is Your Dealership Maximizing Out-of-State Sales Opportunities?

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There was a time when dealerships didn’t think much about attracting out-of-state customers unless they happened to be located near a college town, military base or state line. The internet has changed all that.  

According to Cox Automotive 2018 Car Buyer Journey research, 60% of the time car buyers spend buying a vehicle consists of researching and shopping online. 

Car buyers can now peruse vehicle inventories all over the country from the comfort of their own homes. That means there’s always a chance that the next customer to walk through the door drove cross-country or booked a one-way flight from another state to get to you. 

When you take into account that half of all car buyers do not contact the dealership before they stop by for the first time, it’s important to be prepared for customers from anywhere. 

The flip side is that your dealership is no longer just competing with the auto dealers across the street and down the road. Now, every dealer in the country is a potential competitor. 

If you don’t feel quite ready to take on the myriad titling and registration laws, regulations, guidelines and processes that differ for every state, you’re not alone. It can feel overwhelming to keep up with your own state’s registration and title forms, fees and taxes, much less those from 49 other states. 

Fortunately, there are software solutions available to help. Dealertrack’s RegUSA is designed to handle dealerships’ out-of-state registration and titling needs for all 50 U.S. states, including calculating fees and taxes and generating the proper forms. All this while ensuring compliance with each state’s regulations. 

With an out-of-state registration and titling solution in place, your dealership can confidently market to potential buyers across the state line and across the nation. Knowing that you have the tools to handle registration and titling for all your customers, no matter where they live, opens up sales opportunities that you may have been overlooking in the past.  

3 Scenarios Where Back Office Tech Can Save Your Bottom Line

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There are three types of situations in which inefficient back office processes can sabotage a dealership’s bottom line. You may recognize some of these scenarios at your dealership. Let’s take a look and see how a solid registration and title technology partner can help.

  1. The Fruitless Internet Search

In this instance, you have an out-of-state customer who wants to buy a car that you’ve advertised online. You’re not familiar with the forms, tax rates and regulations for registration and title in their state, so you spend hours looking online for the information you need.

In the meantime, the customer is getting more and more frustrated that it’s taking forever to complete the sale.

No one expects your back office staff to have encyclopedic knowledge of registration and title processes and rates for all 50 states. However, you can plan ahead for these situations so you know how to find the correct information – and also set expectations so your customers are prepared for the amount of time it will take.

You can also implement technology solutions that include out-of-state registration and title information, automatically calculate taxes and fees, help you stay compliant with each state’s regulations and do it all quickly and efficiently.

  1. The Vanishing Ex-Spouse

Here we have a situation where an out-of-state customer comes to your dealership to purchase a vehicle and they bring you a trade-in, claiming to be the sole owner. Because your dealership wants to close the deal, you move forward with the sale. The customer leaves with their new vehicle and you start the title search for the trade-in.

Oops! It turns out that the customer’s former spouse is listed as co-owner. You can’t reach your customer, and hours of searching have failed to turn up contact information for the other person. Now you’re potentially facing legal issues and a complete loss on the trade-in.

The non-tech solution is to slow things down and make sure you don’t make decisions like this under pressure. Of course, that means you run the risk of losing sales if you delay too long, so it’s important to set a risk threshold.

With the right registration and titling technology solution, you can instantly view the details of even out-of-state titles so you’ll know what steps – if any – need to be taken to confirm the legitimacy of each trade-in.

  1. The Lost Sale

Let’s say you have a buyer interested in a vehicle that you recently took in on trade. You’re still working to square away the registration and titling details along with other prep, so you let the customer know that it’ll be available in a week or so. The customer doesn’t want to wait that long, so you lose the sale and now you’re looking at holding costs as well.

To take the delays out of processing trade-ins, it helps to create a process for accuracy checks on critical steps so you’ll be on the lookout for inaccuracies such as short pay rejections. It also helps to build relationships with lenders and consider the holding costs associated with lenders who are slow to fund.

Finally, using registration and title technology that streamlines the process is your most helpful tool to add speed and efficiency to trade-in processing.

Explore how Dealertrack Registration & Title solutions can help your business.

Titles and the Need for Speed

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Customers are continuing to spend less time at a dealership from beginning to end. According to the 2018 Cox Automotive Car Buyer Journey Study, car buyers spend 60 percent of their time online. They want to come in with the dealership already aware of what they want, close the deal and wrap up all subsequent paperwork as quickly as possible.

Dealerships have made great advances to make this a reality. However, there is still one piece of a deal that is out of the hands of both the customer and the dealer — the acceptance of payoff and the release of the title for a vehicle that is traded in.

Our data shows that the traditional payoff and title release process for trade-ins can average anywhere from 12 to 18 days or more, because each lender sets its own process. Without that title in hand, the dealer risks selling a vehicle that may not belong to him or her yet.

And this process includes many time-consuming tasks: lengthy hold times with lenders waiting to verify payoff amounts, hand writing checks that are then overnighted for delivery, more phone calls and hold times with lenders to address short pays or to track the status of a title after payment was mailed, and so on. Dealerships often need more than one clerk just to manage these details.

And, as all this is taking place, the car is sitting on the dealership lot, not being sold — just occupying space. Dealers spend on average $32 per day for each car that sits on their lot, according to a 2016 Manheim Online Dealer Community survey. Multiply that $32 by the average number of days your trade-in waits for title, then multiply that by the average number of trades you take in per month. That total loss quickly adds up; it’s not unheard of to be tens of thousands of dollars per year, or higher.

Full lienholder details can be viewed before initiating payoff — eliminating the guessing game of what may appear on the title to unwind the deal — and payment as well as title status can be tracked 24/7, eliminating the need for follow-up calls by staff. This streamlined process virtually ends the short pays, lienholder surprises, check writing, phone calls and spreadsheets/log books that plague the traditional manual process. This fully electronic process also gives complete transparency to dealers as well as lenders while also creating consistency. This is fast becoming the new industry standard — a standard that is easy and efficient for dealers, lenders and customers.

What does this mean for dealers? First, inventory may be moved more quickly. Second, staff can spend less time dealing with payoff calls, title tracking and bookkeeping, which frees up their time to make more sales and better serve the dealership and its customers. This process helps the dealership save a significant amount of time and money and, in turn, improve its bottom line. Ultimately, the dealership is more productive and profitable.

Dealers have known for a long time that the title release process is time consuming and outdated. It’s time to accelerate and modernize this process the same way the rest of the dealership and car-buying processes have been updated.

Discover how Dealertrack Accelerated Title can help your dealership close more deals and get more customers on the road faster and more efficiently.

A version of this post originally appeared in AutoSuccess.