This disruptive time has just about everyone adapting to a new normal. The current economic downturn has forced companies everywhere to find new ways to keep their business running, reduce operational expense and comply with social distancing mandates.
Financial institutions in general have spent the last couple of months focused on ensuring that their operations can run efficiently and without disruption. In the auto retailing industry in particular, lenders also have their eye on how dealers are adapting to the major shift in the way cars can be sold. Just about every automotive ad on TV or radio is touting “home delivery” and “no-contact” as ways for consumers to buy new cars.
Today’s economic landscape has changed consumer and dealer behavior, and sentiment studies indicate that some – if not all – of these changes may be here to stay. Let’s look at some of the most important considerations for auto lenders today, which Cox Automotive thought leaders will cover in-depth during their May 13th webinar, “Virtual Auto Retailing: Today’s Marketplace Outlook and Digital Strategies for Lenders“:
Consumers Are Still Car Shopping
According to weekly 2020 Cox Automotive COVID-19 Consumer Impact Studies, an increasing number of car buyers intend to move forward with their purchases, and 2 out of 3 say they are more likely to buy the vehicle 100% online. About a third of consumers are delaying their purchases, but the rest are moving forward.
Digital Adoption Is Growing
There has been a rapid increase in digital retailing and digital contracting adoption by dealerships. That means it’s vital for lenders’ business objectives to have technology in place that support their dealer partners’ new workflows.
What do dealers require from lenders in this new landscape? In order to keep sales moving with customers who are unable or unwilling to visit the dealership, lenders need to move beyond just accepting online credit applications. Lenders who offer digital contracting and support assisted remote signing capability empower dealers to deliver a safe, secure and complete contract package that also eases lenders’ ability to review and fund them. But it doesn’t stop there…
Be Prepared with a Plan to Keep Business Moving
As an industry, we need to be considering what is happening right now, preparing for shifts in how we do business, and looking ahead to anticipate which of these shifts will become permanent and how things will change further.
To learn more about these trends, we encourage you to attend Cox Automotive’s webinar, “Virtual Auto Retailing: Today’s Marketplace Outlook and Digital Strategies for Lenders” on Wednesday, May 13, 2020 at 2pm EST. Cox Automotive Chief Economist Jonathan Smoke and Dealertrack Lender Solutions Strategist Andy Mayers will discuss the state of the economy and trends influencing how lenders should be thinking about and approaching their own digital strategies.