Technology is becoming increasingly important in motor finance as the customer journey goes online. A report from Cox Automotive recently revealed that 60% of dealers will have online purchasing services up and running in the next two years, making the ability to secure finance easily online a must.
Chris Jones, COO of Blue Motor Finance, said that online platforms supporting motor finance are essential.
“A dedicated online platform for dealers is important so that they can access the full range of finance products as required. Blue have recently entered into a new partnership with Lloyd’s Commercial Banking to allow loans to be agreed in real-time, meaning customers can receive funds within a few minutes.”
During this time of change, Jones feels it is important for dealers to take into account each individual customer’s circumstance and vehicle information. “This is important to present an appropriate finance offer. Our automated processes help us work with dealers to obtain accurate customer information that enables us to provide the best rate for their circumstance.”
Perhaps the most important part of online finance is the application process, which Jones called “essential”. He said: “Not only does it make the process itself more efficient, but it also avoids the need for completing cumbersome paper work, ensuring appropriate paper trails are kept and identity and affordability checks are made. With recent data protection changes, online applications help manage the collection and storage of a customers’ personal details and contact preferences.”
David Mercer, managing director of V12 Vehicle Finance, believes that online quotation capability and soft search functionality are key drivers of business.
“The customer enquiry and buying process involves online research in most cases and the requirement is for instant results around the clock.
“The majority of consumers do most of their used car buying research online before considering contacting or visiting a dealership, so once a customer has found a car online they can use the quotation facility to generate an immediate quote on a car.
“Customers will search nationally for the right used car rather than just focusing on their local dealers’ stock. Without an online quotation facility dealers risk losing customers.”
When it comes to online tools, Mercer sees finance calculators as major players. “Calculators are very important for customers to make comparisons and fine tune their choices ahead of contacting the dealer to progress their enquiry.”
To work with dealers towards the best finance offering, finance companies need to understand the challenges that they face, Mercer said. “They must meet these as best they can through the provision of a comprehensive range of products that add value across the dealers’ business operations.
“V12 Vehicle Finance embraces this approach and has developed a prime finance offer in both HP and PCP product types to complement near prime HP. Enabling dealers to offer a full suite of products that integrate with online calculators via dealer websites is a key part of the V12 Vehicle Finance consumer finance roll-out strategy.”
Embracing online applications has become a critical for dealers offering finance to their customers, with iVendi claiming that it generates online motor finance quotes on around 250,000 vehicles every month.
Mercer said: “Most customers prefer to engage with dealers and finance companies for the convenience and speed it brings. We recognise the importance of providing a digital channel for all our customer applications and have invested in new technology to deliver a digital buying journey for dealers and their customers that meet their expectation.”
Santander Consumer Finance recently launched an online loan application platform featuring e-sign capabilities. Stewart Grant, Santander Consumer Finance commercial director said: “This is a significant step in our digital marketing strategy and underlines our commitment to supporting our dealer network in maximising sales and profitability within the growing digital market.
“It is a huge achievement for the teams involved to be able to launch two online application systems in less than four months and within a year since the project was first planned.”
Jones summed the situation up succinctly “Keep it simple but remain flexible. One size doesn’t necessarily fit all.”