Tag: trade-in titling

Six Ways it Pays to Go Paperless

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When Earth Day comes around, it’s a good time to think about saving paper. But saving trees and doing good for the planet aren’t the only benefits of using less paper at your dealership.

If you’re using dealer software, you’re already familiar with the digital efficiency of submitting credit apps to multiple lenders with a click, accurately crunching deal numbers, signing deals on devices, or cutting down the wait for trade-in title release. But digital solutions also remove hassles associated with paper workflows and make your daily tasks easier to manage. Here’s how:

1. You can’t get a paper cut from a mobile device

Does anyone really enjoy printing and collating paper documents? It’s a lot of work and even when you do everything right, you’ll be presenting them to customers who immediately envision a case of writer’s cramp on the horizon when they just want to take their new vehicle and go.

If you made an error? Then you must start over and use up more time and paper.

And let’s not forget what those reams of paper cost! Record Nations estimates that the average business spends as much as $8,000 a year on paper.

Digital submission of credit apps and contracts can be handled on a tablet, so you don’t need to juggle stacks of paper to collect the information and signatures you need. No paper cuts, no writer’s cramp – just fast, efficient processes that help keep car buyers engaged in the excitement of their purchase.

2. We all remember the great toner explosion of 2019…

Printers and copiers can go from being useful tools to messy, annoying hindrances in an instant. Paper jams, the inability to connect to a data source, and mishaps replacing ink or toner cartridges can lead to frustrating downtime and delays for customers. Copiers and printers require expensive, often proprietary supplies, and service maintenance calls are even more costly. And printing checks often requires special equipment and more paper handling with mailing and stamps.

With digital processes, the war with printers is over. Online solutions allow you to submit credit apps, build funding packages, get electronic signatures, transfer trade-in payoffs via ACH, and connect securely to lenders – with no need to involve paper documents.

3. Valuable time and real estate

Did you know that a four-drawer file cabinet takes up an average of 9 square feet of floor space? That sounds like the beginning of an algebra problem, but think about what else your dealership could put in place of all the paper files you currently store.

Gartner research shows that every day, between 2% to 5% of an organization’s files are lost or misplaced. It takes an average of 18 minutes for an employee to locate a paper file and for misplaced files, the time spent jumps up to two hours! In contrast, digital files are securely stored in a customer’s digital deal jacket for easy, on demand access.

4. Keeping data out of the wrong hands

Speaking of secure storage, mishandling paper documents and files can compromise data security and expose your customers’ personally identifiable information (PII). For instance, if you forget to pick up a document from the copier or leave it out on your desk, anyone could pick it up and potentially misuse the information printed on it.

Digital solutions help keep your files password protected and available only to authorized staff members. And electronic transactions are encrypted and more secure than mailing or shipping paper documents, so sensitive customer data stays protected throughout the deal.

5. No need to get up

It’s easy for a customer to miss a signature in the haze of colorful sticky flags on stacks of paper forms. With digital signing, customers can review and sign once on a tablet or mobile phone, then simply click to apply the rest of the necessary signatures. They can do it on the lot, in the showroom, sitting in the vehicle they’re about to buy, or even handle deal completion from their home or office.

Dealerships can create full funding packages with an eContracting solution for uploading stips and deal documents, adding signature and date fields to create eSignable forms, and set up secure, single signing sessions for their customers wherever it’s most convenient for them.

6. Too much? Too little? Just right!

The most paper-intensive part of manual trade-in payoffs is cutting and mailing checks. If it’s a short pay, you have to generate another check. If you’ve overpaid, you get a check back from the lender to process and deposit. Meanwhile, your lien sat release or title release gets delayed until the finances are sorted out.

A digital trade-in titling solution removes all that extra time and paper from the equation with reliable payoff amounts calculated from lender data and payoff submission via ACH. Liens and titles get released faster and your staff no longer has to deal with all the back and forth.

The bottom line

Switching to digital processes can save you up to $65 per deal on average1 – and approximately 52 sheets of paper per deal.2 Don’t let the inefficiency of paper deals impact your business – start adopting more digital credit applications, digital contracts, and electronic trade-in payoffs so you can maximize your savings!

In the spirit of conservation, Dealertrack is rewarding dealerships that use digital solutions throughout April of 2024. Learn how you can earn rewards >

1Savings estimates based on $50 savings from printing, shipping, and forms costs plus $15 savings when using Accelerated Title. Figures based on dealer calculations using Dealertrack’s Accelerated Title Savings Calculator and Digital Contracting Calculator as of 2022. Not a guarantee of savings.

2Based on Dealertrack and dealer customer data as of August 2022

Unmasking “Double Agents” Before Taking Trade-Ins

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It was the kind of trade-in that would get the attention of any dealer in the city. With low mileage, sleek lines, and a purring engine, it had “fast resale” written all over it. But this car was a double agent, hiding a secret on its title that threatened to cause heartbreak for its owner, the dealership, and the next eager buyer.

Luckily, the dealership had seen its share of double agents before. A less seasoned dealership might have waited weeks before receiving the title and learning of the customer information discrepancies it contained. But this dealership was primed and ready with a trade-in titling solution that offered a quick peek at the title before there were commitments on either side.

A Surprise No One Wants

There are good surprises and bad surprises in life, but what every dealership wants to avoid is a trade-in title surprise. That’s what happens when the customer’s name or address is wrong on the title – or worse, there’s a co-owner or co-signer that no one mentioned. When you’re handling your payoff and title release manually, these unwanted surprises may take weeks to pop up. They can delay remarketing or even unwind both the original deal and the trade-in resale.

Shining A Spotlight on Title Details

Dealertrack Accelerated Title allows dealers to see the full details of titles held by top auto lenders ahead of taking in a trade. That information helps the dealership get ahead of any needed title changes that could hold up resale or unwind a deal – and they can choose not to accept a trade depending on what they uncover.

According to the 2020 Dealertrack Online Dealer Community Survey, on average about 53% of vehicles taken in on trade each month require title acquisition, which means more than half of trades could be hiding payoff and title surprises that need to be addressed.

Not only can Accelerated Title help you identify and defuse double agents among your trade-ins, but it also helps complete payoff and title release up to 70% faster than manual methods, so you get a clear title in as little as 4-6 days. Full title details plus expedited title release means you can confidently turn a trade and realize its profit potential without lingering unknowns casting a shadow over the deal.

Register for a brief, live demo to find out how Accelerated Title can help your dealership avoid double agents. 

What To Do About Trade-In “Freeloaders” On Your Lot

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When you take a vehicle in on trade, it starts out at the dealership as an honored guest. After all, it’s there to be re-sold at a profit.

But when it takes a long time to get a clear title, soon that same vehicle reveals its secret identity as a freeloader: a trade-in without a clear title that takes up space on your lot, costs you interest, and racks up other holding costs that eat into your profitability day by day.

According to Dealertrack data, the average industry timeframe for vehicle title release and payoff is 18 days or more. And data from a 2019 NCM Associates Group Study puts average holding costs at $37 per day, per vehicle. So that means the average freeloader chews up nearly $700 in profit potential while sitting idle on the lot waiting for the lender to receive the payoff and ship the title back.

Turning Freeloaders into Profit Earners by Shortening Their Stay

Dealertrack manages paper and electronic titles for numerous lenders, which makes them uniquely positioned to speed trade-in title release for dealers. Dealertrack Accelerated Title® helps a dealership complete payoff and title release for trade-ins up to 70 percent faster, so the clear title arrives in as fast as 4-6 days.

That means you can hustle those freeloaders off the lot more quickly, help maximize your profit potential, and see the cash flow from re-sale or auction with less delay.

There’s an old saying, “Every guest brings you happiness. Some when they arrive, and some when they leave.” Accelerated Title can help ensure that your trades don’t overstay their welcome so they can bring your dealership happiness – and profitability – coming and going.

Sign up for a brief, live demo to find out how Accelerated Title can help your dealership avoid freeloaders.

Car Buying Hits the Road

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Even before the current inventory crunch, dealerships have been promoting their listings beyond their immediate market area to reach as many consumers as possible. Thanks to online shopping, car buyers can locate the exact vehicle they want, and they are increasingly willing to complete those purchases regardless of where the vehicle is located.

2020 Cox Automotive Car Buyer Journey research found that car buyers have been steadily increasing their buying radius over the past three years, nearly doubling it from an average of 45.9 miles in 2018 to 89.3 miles in 2020. So, it’s no surprise that Dealertrack shows an approximately 80 percent increase in out-of-state registration and title transactions over the past five years.

With that in mind, it’s more important than ever for dealerships to be prepared for purchases – and even trade-ins – from customers who live in other states. There’s technology available to help at each step of those processes. Let’s explore how these tools work through a hypothetical out-of-state sales scenario.

Say a dealership in Georgia has a vehicle listed online and a buyer in North Carolina decides he’s willing to drive two states over to get it. This buyer is also planning to trade in his existing vehicle as part of the deal. Here’s how technology can streamline the process:

Trade Insights

First, there’s the trade-in. North Carolina isn’t a consumer title holding state and the loan isn’t completely paid off, so the lienholder still has the title. But there’s a potential complication: the customer happened to mention that he doesn’t remember if his estranged ex-spouse is on the title or not. If she isn’t, the trade-in can proceed without incident. If she is, the customer will have to try to get her current contact information — and obtain her permission for the trade.

It’s a desirable trade-in vehicle, which could make many dealerships inclined to just take the gamble and accept the trade without knowing the title status. But if the ex is on the title and refuses to allow the trade, unraveling the trade and possibly the new purchase deal could be costly for both the dealership and the customer.

But this dealership uses a software solution for trade-in titling that eliminates that uncertainty. With the click of a button, they can pull up an image of the title and find out whether or not there’s a co-owner listed. In this case, the car buyer’s worry was unfounded: he’s the only person listed on the title.

Reliable Payoffs

The trade-in titling solution also helps the dealership calculate a date-specific, reliable payoff amount from the lender for the customer’s remaining loan balance, all without picking up the phone. And when it comes to completing the payoff with the lender, this solution allows the dealership to submit payment via ACH, streamlining their process and eliminating the need to cut and mail checks and wait for them to arrive.

Payment Accuracy

Now that the dealership can confidently make an offer for the trade, next on the agenda is figuring a reliable payment that includes the specific taxes and fees for North Carolina residents. To quote the right payment amount to the customer, it’s vital to know that North Carolina charges a highway use tax rather than sales tax and that there’s a flat fee for vehicles purchased outside the state.

Rather than relying on Google to help them piece together the tax and fee situation at the North Carolina DMV, this dealership uses an electronic 50-state registration and title solution. The solution can help the dealership as early as the desking stage by providing up-to-date taxes and fees for the state, county and municipality where the car buyer lives to help make sure the payment doesn’t change.

Reg & Title Without Borders

With all that taken care of, we’re almost at the finish line. Or are we? There are still North Carolina title and registration considerations for the new vehicle. Fortunately, the same out-of-state registration and title solution that helped with the payment calculation also provides step-by-step guidance and forms to submit titling and registration transactions for any state. That means the dealership can send the customer on his way without giving him an unwelcome errand to run when he gets back home in his new vehicle.

Realizing Full Profitability on the Trade

Finally, there’s that trade-in vehicle the dealership acquired, which they know is in demand. To ensure that they realize as much of that profit potential as possible, it’s important make sure that the clear title is on its way so it’s ready to go out onto the lot as soon as it’s reconditioned.

The problem is that manual payoff and title release can lead to the vehicle sitting on the lot waiting for a clear title. Dealertrack data shows that the average industry timeframe for the vehicle title release and payoff process is 18 or more days. In the meantime, holding costs accumulate each day, chipping away at the profit potential.

But remember when we mentioned that this dealership used their trade-in titling solution to initiate the payoff via ACH? That same solution speeds title release, so they can expect to have the title in hand within four to six days. Faster title release helps ensure faster inventory turn and improved cash flow.

Completing Your Digital Reg & Title Toolkit

Want to see how Dealertrack’s out-of-state registration and title solution RegUSA® can work with our trade-in titling solution Accelerated Title to bring the convenience of this scenario to life at your dealership? Schedule a brief, live demo with one of our specialists today.

Complete Your Toolkit with End-to-End Titling Solutions

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Does your dealership have all the technology solutions necessary to handle your most pressing registration and titling needs? Are you still using manual methods to handle part of your registration and titling workflow for vehicles taken in on trade, those delivered to in-state customers, and/or your cross-border deals?

The industry runs on speed and efficiency. Using a comprehensive suite of registration and titling solutions can help you streamline your workflow, improve customer service, and maximize profitability.

Here’s what you gain from adding end-to-end registration and title technology solutions to your toolkit:

Faster Trade-In Title Processing
The sooner you accomplish payoff and title release for a vehicle taken in on trade, the sooner you can re-sell or auction it. With Dealertrack Accelerated Title®, you can speed title release on trade-ins from the industry average time of 12-18+ days down to as little as 4-6 days. That helps speed inventory turn and reduce the holding costs that come from having the vehicle sit on the lot. With title in hand, it’s nearly twice as likely that the vehicle will sell on first pass at auction.

Cross-Border Confidence
There’s no need for uncertainty when it comes to handling reg and title for out-of-state customers who find your dealership online. RegUSA® helps simplify your out-of-state workflow and provides certified, compliant registration and titling processing for any state. Its enhanced functionality guides you smoothly through each out-of-state deal with checklists, deal comparisons tools, customized forms and real-time fee calculations to help you provide a convenient, full-service experience for every customer.

Back-Office Workflow Efficiency
For in-state title processing, you’ll gain powerful, user-inspired transaction and workflow management tools for a faster, more accurate process that helps to maximize profit opportunity. We back you up with industry-leading support so you don’t have to navigate challenging transactions alone.

Learn more about how Dealertrack Total Titling Solutions can give your dealership all the tools it needs for registration and title scenarios. Register for a demo today.

Your Shortcut to Faster Trade-In Titling

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The typical trade-in process is full of time-consuming manual steps that can mean a long road ahead before you receive the title and turn the inventory. Dealertrack Accelerated Title® offers an expressway to faster title release with just a few easy, online steps.

See how it works in the infographic below (click image for a larger view) and visit go.dealertrack.com/ATexpress to get your dealership on the AT Expressway.

How Dealertrack Accelerated Title speeds trade-in title release

Clear Titles, Full Details Make for a Winning Trade-In

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Autumn means colorful leaves, a chill in the air and the welcome return of football. This year, the auto business is experiencing some tough challenges brought on by daunting economic and industry conditions. Your dealership’s team has a job to do, and trade-ins can be part of a winning strategy for keeping your used car inventory stocked and your cash flow moving.

To lead your team to victory, you can take a cue from the inspirational pep talks football coaches use to help their players turn the game around. So, here are some encouraging words about how your dealership can utilize a digital solution to dig deep and overcome some of the obstacles you’re up against when it comes to trade-in titling.

The Need for A Clearer View of the Field

Let’s say you have a customer who’s ready to buy a vehicle – and they have a trade-in that you know is in demand. If they don’t have title in hand and you use a manual process to obtain one, it could be weeks before you can be 100% sure you’re in the clear and that there are no surprises like a former spouse as co-lienholder or wrong addresses to impede your progress.

Keep Deals from Getting Sacked

If you do encounter one of those payoff surprises, what you thought was a touchdown could end up being a costly sack. If you can’t gain a clear title for a trade – especially if you’ve already re-sold it – you could be facing a very unhappy customer and an expensive loss.

A better strategy is to beef up your defensive line with a digital trade-in titling solution that allows you to see full title details before you decide to take in a trade. That way, you have the information you need to anticipate anything that might tackle the deal so you can take the appropriate action before it’s too late.

Improve Your Inventory Game

Between car buyers’ understandable budget concerns and unusually low levels of new car inventory, used cars are having a moment in the spotlight for dealerships. Trade-ins play a big role in keeping a dealership’s used car inventory lineup solid, so it helps to optimize your payoff and title release process to not only avoid any payoff surprises, but also help keep trade-in inventory moving.

Outrun Cash Flow Interference

Manual payoff and title release takes an average of 18 or more days according to Dealertrack data. While trade-ins sit idle, you’re not yet realizing a profit on your investment. At the same time, holding costs add up until the title arrives, further impeding your profit opportunity.

Even if you’re planning on auctioning the vehicle, having the title in hand nearly doubles your chances of first pass sale at auction1 – and until the title arrives, your cash flow on the sale is held back while you wait.

Using a digital trade-in titling solution to expedite title release from key lenders can get your trade-in inventory in play faster by reducing the time spent waiting from weeks to days. That way you’ll get to the cash flow goalpost more quickly, regardless of whether you re-sell trades on your lot or at auction.

Want to learn how Dealertrack Accelerated Title trade-in titling solution can help you reach your dealership’s inventory turn goal lines more quickly? Visit our feature page for more information and to request a demo.

12018 (1.6X) Manheim Articles “Impact of Delayed Titles at Auction