LAKE SUCCESS, N.Y. — DealerTrack Holdings Inc. launched a new Web-based platform that will connect independent (non-franchised) dealers and financing sources. The platform will include robust risk-mitigation capabilities enabling dealers to provide additional financing options to their customers.
"The DealerTrack Independent Network is a natural extension of our market-leading solution for submitting credit application data," said Mark O'Neil, chairman and chief executive officer of DealerTrack. "By providing a comprehensive package of risk-mitigation capabilities, we believe our new Independent Network will enable many more lenders and independent dealers to be comfortable doing business with each other."
More than 90 percent of U.S.-based franchised dealerships and several thousand of the largest independent auto dealers are active DealerTrack users connected with multiple lenders. However, the majority of the nation's estimated 42,800 independent dealers, which sold over 13 million used vehicles in 2007, have some level of difficulty developing relationships with financing sources.
Among other high-value features, the DealerTrack Independent Network will include ongoing dealer monitoring, as well as vehicle title processing and title insurance. DealerTrack has formed alliances with VINtek Inc. and Vehicle Title Agency LLC, respectively, to offer these services.
Richard McLeer, senior vice president, strategy and development, DealerTrack, said, "The inability of many independent dealerships to offer financing options to their customers limits their potential revenue opportunities and puts them at risk for losing deals. By partnering with VINtek and Vehicle Title Agency LLC, we are minimizing the risks lenders sometimes face, benefiting lenders, dealers and consumers alike."
The first five financing sources that have agreed to connect to the DealerTrack Independent Network are ACC Consumer Finance, AmeriCredit Financial Services, Fireside Bank, Turner Acceptance Corporation and Universal Special Auto Finance.
O'Neil concluded, "We believe the Independent Network is a key strategic solution for DealerTrack. It has the potential to leverage our existing credit application network not only in connecting more dealers and lenders, but also by creating new growth opportunities for DealerTrack. Subscription and transaction products such as the DealerTrack Arkona DMS, our InventoryPro inventory management solution, the DealerTrack Aftermarket Network, online used car valuation tools and our compliance solutions can help independent dealers better manage their business."