Dealerships and lenders can use technology to hasten and augment the stip process, a startup working with some of the major automotive finance companies has demonstrated.
Informed.IQ goes beyond traditional submission methods for stips — income stipulations — such as uploading images to a portal, linking bank accounts or physically bringing documents to a dealer, CEO Justin Wickett said. Under the old system, a customer might be able to upload a picture of a pay stub, but they wouldn't immediately know whether the information is enough to confirm the loan, he said.
But Informed can automate "over 95 percent of situations" with artificial intelligence reviewing documentation images and confirming information such as income or address immediately, Wickett said. The Informed system can text the customer a link to the submission portal, which permits the buyer to submit the stips from home.
Dealers can use such document analysis to qualify a buyer before the consumer visits the dealership and produce "stip-free deals," according to Wickett. The technology might also minimize a dealer's time in limbo that's created when they allow a customer to take home a vehicle while awaiting the lender's decision to buy the deal. Wickett said it can often take 14 days before a lender provides financing, but the automated process has allowed some of the nation's largest indirect lenders to fund dealers "same day."