Dealers Struggle with Digital Solutions Featured

By Staff Writer June 27, 2019

Dealers understand digital retail solutions, but may struggle in providing such solutions to customers, according to survey results from Equifax.

The online survey polled 135 dealers around the country on current trends in retail transactions, credit applications, vehicle financing, fraud; and their prospects of offering online digital retailing options to customers.

Time at the dealership continues to remain a problem for consumers looking to complete a transaction, particularly when it comes to the F&I process.

According to dealers, 45 percent said it still takes between one-and-a-half and two hours, while 31 percent said it takes between two and two-and-a-half hours to complete a deal. While 84 percent of dealers said they offer appointment setting online, only 27 percent said they can facilitate the entire deal online. Conversely, 87 percent of dealers admit that customers would prefer to complete a deal online.

Additionally, 89 percent of dealers continue to grapple with unidentifiable information in credit applications, saying they handle one to two credit applications each day that fall into this category. Dealers also remain largely focused on collecting information stated on the credit application, such as income (89 percent) and employment (84 percent).

Less than half of dealers (42 percent) say they are also currently collecting alternate forms of data such as property ownership or property payment histories, additional data that can be critically helpful in identifying the appropriate financing for an individual.

Fraud continues to be a challenge as well. The survey revealed that 76 percent of dealers are forced to handle between one to three fraudulent transactions each month, and another 19 percent saying between three and five transactions each month.

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Last modified on Tuesday, 02 July 2019 14:37