DETROIT - DealerTrack will offer dealers the ability to create and transmit a virtual finance contract - including digital signatures from the car buyer, co-signers and the dealer.
About 15,000 U.S. dealers already use DealerTrack to submit electronic credit applications to banks, credit unions and captive finance companies.
This is the latest evolution in efforts to put the credit process online. Dealers using e-contracts are expected to reduce the time and paperwork to have finance contracts approved. The quicker the financial institution approves the contract, the quicker the dealer gets paid. When a dealer uses the mail or fax, it can take up to a week for contract approval.
"Our objective is to carve out six of those seven days, effectively make it a same-day funding process," said Craig Stokum, DealerTrack's vice president for product and business development in Melville, N.Y.
But there still is one step in the process that requires paperwork.
A dealer still will have to fax or mail lenders documents such as the manufacturer's invoice, vehicle title and registration application.
Stokum said he envisions Deal-
erTrack being able to submit such
documents electronically as well.
"Over time, we envision building out a document library in order to make them all electronic," he said. There is no time frame for making the remainder of the process electronic.