Fintech innovator eLEND Solutions released a new study that confirms dealerships are experiencing a significant disconnect between the online and instore process, one that dealers agree must be solved to shorten transaction times and improve the customer experience.

But, while most dealers surveyed indicate that digital retailing (DR) can speed up the traditional sales process, most dealers remain reluctant to fully embrace DR.

The snapshot survey was done by eLEND among auto dealers in February 2022 to find out why time spent by customers in the auto dealership has only decreased by five minutes in the past five years (as reported by Cox Automotive) even as digital retailing has increased as a result of the pandemic.

“We were stunned at this small reduction in the amount of time spent in the dealership over the past years,” said Pete MacInnis, CEO and Founder of eLEND Solutions. “As our survey indicates, the disconnect between the online and instore process, and the lack of more holistic digital retailing adoption – especially when it comes to digital finance - is hampering efficiency.” 

MacInnis stated the vast majority of dealers agreed that unrealistic initial finance terms presented online can slow the process, but that if more realistic payment terms were initially presented online, 60 minutes-plus could be knocked off the transaction time. This is significant given that 53% of dealers think that less than 20% of the sales process should be devoted to negotiations and final terms of finance.

Key Survey Takeaways

• 89% of dealers agree that there is disconnect between online shopping and instore buying
• 95% of dealers agree that this disconnect must be solved to shorten transaction times and improve customer experience
• 95% of dealers believe that digital retailing eliminates/speeds up many of the steps in traditional sales process
• 64% believe 20% or less of the traditional in-store sales processes are now handled through online digital retailing in dealerships who are using DR, with only 25% saying over 40%
• 50% of all surveyed dealers think that 80% of traditional in-store processes should remain exclusively in-store. Less than 1 in 3 think at least 40% of traditional in-store processes should be enabled online via DR.        
• 54% think that that 80% or more of all required customer information/supporting documentation should only be submitted in-store; only 29% say that over 40% should be able to be submitted online
• 96% believe that unqualified or unrealistic payment terms presented to consumers online negatively impact the efficiency and timeline, i.e., time spent on the transaction, of the car buying process
• Majority agree that transaction times can be dramatically accelerated if realistic terms are presented
• 95% say that at least 30 minutes could be knocked off transaction times… with 58% saying an hour or more could be saved.
• 53% of dealers think that less than 20% of the sales process should be devoted to negotiations and final terms of finance.