Picture this: You’re watching TV when an ad comes on... “Calling all basketball fans, it’s madness in March, come see two teams duke it out for one night only (free admission).” You decide to go, expecting to see two college teams play some exciting basketball, but to your surprise, it’s two rec league teams playing a pickup game.
It sounds ridiculous, but technically, the ad didn’t lie. While there weren’t two top colleges like you were expecting, at the end of the day, it was two basketball teams going up against each other. The point of this is to show how offerings on the surface may not be what they seem when you dig deeper.
Let’s examine the automotive eContracting landscape from this lens. The term “eContracting” seems simple on the surface, but it can have various meanings when you dig deeper. It’s important to do the proper research into the specific offering to make sure it’s truly what you need. Let’s dive deeper into the various offerings and what you really get with each.
The Scan and Send “eContracting” Process
Just like there are different levels of basketball, there are also different levels of eContracting. Like rec basketball, the most basic form of eContracting simply involves scanning forms digitally and sending them in for funding. While technically the deal is “electronic” when it hits the lender’s desk, there is still a lot of manual work that goes into prepping the deal before it’s scanned. Physical paperwork, wet-ink signatures, and multiple compliance checks are needed before digitization.
According to Auto Finance News,
28 percent of all deals were eContracted by the end of 2024. And that number has steadily risen since more lenders require digital deals to receive funding. As the industry moves toward a fully digital age, why not put yourself in the best position for success by digitizing your F&I process?
The Segmented “eContracting” Approach
Some forms of eContracting are like college teams: They have the potential to get the job done in crunch time, but still have room for improvement when compared to the pros. While these eContracting solutions offer more functionality than basic scanning tools, like partial deal integration within the system, many still focus primarily on communication between the dealership and the lender. Although the deal is linked to the DMS when it’s time to leave the F&I office for funding, there are still several distinct steps that take place in the dealership before getting there. Credit checks, desking, validation, and signing are all still done physically in different locations of your store.
Nearly 50 percent of car buyers stated they’re more likely to buy a vehicle if the credit application process can be done online. That’s a demand for a digital process before the customer even steps into your store, let alone your F&I office. What impact would an F&I option that fully integrated into your workflow, from contact to funded, have on your dealership?
The Embedded Workflow Approach
The
embedded workflow approach is the dealership equivalent to the NBA’s finest. This option ensures you can digitize the entire F&I process, from the moment a customer starts shopping your vehicles to the moment you receive funding.
When your workflow is fully embedded, you’re able to complete each step without ever leaving the DMS. Credit application, presenting products, signing, and deal approval are all digitized, meaning less paper and quicker funding on your end. A fully embedded workflow also gives you peace of mind by preventing costly mistakes and compliance strikes. Putting necessary forced checks throughout the process as the deal travels through each step ensures nothing gets missed. If a change is needed, you’re able to edit on the fly since everything is kept in one centralized area at all times. In the ever-evolving landscape that is the automotive industry, an embedded workflow allows you to adapt accordingly without sacrificing crucial steps along the way.
The next time someone asks if you’re eContracting, take a deeper look at what your current setup really entails. If it is anything less than an NBA-caliber performance, it may be time to consider a change.
