Mission Viejo, CA – May 6, 2015 –Eighty percent of auto dealers expect that CFPB regulations will be implemented in the near future, according to a new survey conducted by eLEND Solutions™. The survey also revealed that less than half of dealers have plans in place to meet these new regulations, which will replace dealer participation with mark-up thresholds or a flat-fee model.
Dealers also indicate that they are ready to deliver a sales and financing process that begins online - the vast majority (95%) agree that the industry should strive to create one, easy streamlined buying experience by starting both the sales and financing process online. In fact, eight in ten dealers agree that a connected online and in-store experience will help sell more cars faster and lead to greater customer satisfaction -- and nearly 70% of dealerships say this is a goal for their dealership.
“This survey underscores that the time has come for a better sales and financing process, whether or not the CFPB has its way,” said Pete MacInnis, CEO of eLEND Solutions. “The days of the four-hour, very disconnected, sales/financing process is poised to end as dealerships look to move more and more of the sales and financing process online – and connect it end-to-end.”
Establishing a connected buying experience that starts sales and finance together online is an approach that helps dealers modify current negotiation/finance purchase contract processes that are likely to be required as a result of the probable CFPB changes to dealer participation policies.
• 80% of dealers think it’s highly (35%) or somewhat (45%) likely that CFPB regulations will be implemented; yet nearly 60% don’t have a plan in place to meet these regulations
• 34% think the impact of CFPB regulations will be positive, while another 31% think impact will be minor or none at all
• 71% strongly agree that “creating one easy, streamlined buying experience – by starting Sales and Finance together online – is a worthwhile goal”
• 76% of dealers stated that “Connecting the online and offline shopping experiences to create one seamless, unified buying process could lead to accelerated sales, faster retail transaction times and greater customer satisfaction.”
• 69% of dealers say that connecting the online and offline shopping experiences is a goal at their dealership
• A full 1/3 of dealers say they are reluctant to put F&I online because traditional dealership processes insist financing be arranged exclusively in store
In a previous eLEND Solutions survey 80% of dealers said that their sales and finance process averaged two hours or more and 40% reported that theirs lasted three hours or more – while a whopping 82% of dealers say the ideal end-to-end process should take two hours or less. Yet, according to a recent Autotrader.com survey, buyer satisfaction starts to decline after 90 minutes at the dealership. The same study showed that 66% of consumers would be much more likely to buy from a dealership that offers their preferred experience.
*Survey conducted online among U.S. dealerships in March/April 2015.
About eLEND Solutions:
eLEND Solutions was founded in 2003 as DealerCentric, who pioneered the auto industry’s leading online interactive credit application product. The company has since expanded its mission by developing a comprehensive, next-generation consumer finance management system that will benefit dealers, lenders and consumers. eLEND Solutions technology platform brings financing to the front of the sales process, and puts the customer in the right vehicle and loan, at the point of sale, reducing the sales and finance process from hours to minutes.