BURNABY, BC – Inovatec Systems Corp., a provider of cloud-based software solutions for all financial institutions, announced the results of its latest survey, where dealers reported partnering with fewer than twenty lenders to finance automotive loans, highlighting a competitive financial marketplace for lenders. The data sheds light to the importance of accurate and efficient lending processes in an environment where dealers can be selective about their lender partnerships.
It’s evident the financial marketplace is competitive and robust, and many lenders have struggled to adjust to the changing landscape during the pandemic.
When asked about their current dealership financing options, 58% of dealers reported relying completely on third party financing, while 42% said they offer in-house financing. When asked about their finance preferences, 40% stated that they prefer to use their own in-house financing options over the help of a third-party financial institution.
Respondents were further asked about their credit application procedures, transaction times and COVID-19 related changes in sales and processing time. Of those surveyed, 75% said that customer credit application forms could take up to one hour to complete. When asked about the average transaction time, 39% of dealers reported their transactions take between one to two hours. An additional 21% said a transaction takes between two to three hours, 12% said between three to four hours, and only 28% said it takes less than one hour. When dealers were asked how long the average lender transaction processing time has increased during COVID-19, 62% said it has increased by approximately one hour.
“The results of the survey indicate a clear need for quicker, more effective lending technology processes that can increase the efficiency of existing systems that require ample amount of processing time,” said Brendon Aleski, US Director of Sales at Inovatec. “It’s evident the financial marketplace is competitive and robust, and many lenders have struggled to adjust to the changing landscape during the pandemic.”