EP. 10 - Challenges Dealerships Face with Car Financing

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Transcript

Speaker 1  0:00  
Okay, so let's be honest. Nobody, uh, nobody dreams about the moment they get to sit down in that dealership financing office. You're so excited you found the perfect car, and then bam, it's like this mountain of paperwork just appears out of nowhere, and suddenly you're stuck in this time warp while they try to figure out the mysteries of your credit score. 

Speaker 2 0:21  
Yeah, it feels like it takes forever,


Speaker 1  0:23  
So today we are going to be diving into a measure, one article that really digs into those dealership financing friction points. It does get a little bumpy, especially when we're talking about insurance verification, but it's not all doom and gloom, because we're also going to explore how technology is really starting to change the game here. This article doesn't hold back. It lays out like four major challenges that dealerships and customers both face. It's like it's pain points on both sides. You know what I mean. So first up, and this is something anybody who's bought a car recently has definitely experienced. The manual processes, insurance verification, gathering all the documents, getting loan approvals. It's like we're still in the days of phone calls. Phone calls, faxes, the Pony Express, almost like how many of us have been sitting in that office listening to that elevator music on repeat while somebody is on hold with the insurance company. 

Speaker 2  1:15  
It's like universal experience, like you said, it's not just the inconvenience, though. It's right relying on these manual processes. Yeah, it's just asking for mistakes to happen in this world, like we're talking finance, legal agreements. Yeah, one error can really spiral out of control. 

Speaker 1  1:31  
Yeah, one mistake, and it's a domino effect. And speaking of expectations, that kind of leads us to our second pain point. Today's customer. They expect speed, they expect efficiency. We can order groceries on our phones and they like magically appear on our door stuff. So why? Why should financing a car feel like we're stuck in the stone age? You know, I know it's true. This article actually had a stat that almost made me spit out my coffee. On average, it takes almost four hours to finance a car at a dealership, four hours. Oh, my God, that's longer than some international flights. 

Speaker 2  2:01  
I know it's crazy. Something's got to give.

Speaker 1 2:03
Yeah. No wonder people are frustrated, right? It's like this disconnect between what we expect in other parts of our lives, yeah, and then the reality, yeah, of what it's like buying a car, and that excitement of that new car smell, it starts to fade the longer you're sitting there.

Speaker 1  2:22  
The excitement turns into like just dread at a certain point. So we've got, we've got manual processes slowing things down. We've got impatient customers. But it gets even more complicated pain point number three is a big one, compliance, all those regulations that dealerships have to navigate.

Speaker 2  2:38  
Oh, yeah, the regulatory maze. It's a lot. It's it's, you know, you got consumer protection laws, financial reporting requirements, dealerships, they're under constant pressure to stay compliant. And the thing is, those manual processes we talked about, they're practically begging for human error, and even a small slip up can turn into legal penalties, financial losses, and nobody wants that.

Speaker 1  3:02  
It's like juggling chainsaws while riding a unicycle, exactly, risky business. Which brings us to, I think, the final and this is like the root of all the other pain points, outdated dealership management systems, DMS, for those in the know, think of the DMS like the behind the scenes Maestro of the car dealership. It's supposed to connect everything and everyone, but as this article points out, many dealerships are working with systems that are how do we put this vintage vintage? Yeah, they're about as efficient as using a rotary phone to book a flight to the Moon. Exactly. They're clunky. They're disconnected from lenders, insurance providers, all those crucial pieces of the puzzle that need to be talking to each other for this whole thing to run smoothly. It's like trying to run a Michelin star restaurant from a kitchen that's stuck in the disco era, right? So we've got ourselves a perfect storm of challenges here. But before you swear off car buying forever and just decide, You know what I'm gonna stick with my rusty old bicycle. There is good news on the horizon, because, as we'll see in part two, the tech world is rolling up its sleeves, and they're bringing in some heavy hitters to shake things up a bit. Okay, so we've uncovered some some pretty deep seated dealership dilemmas, but, yeah, this article is an all doom and gloom. It actually paints kind of an exciting picture of how technology is coming to the rescue, especially this new wave of DMS solutions. 

Speaker 2  4:23  
This get tech makeover for the whole financing process, yeah. Then what's really interesting is how automation is stepping in to tackle those manual tasks. We're just bogging everything down. We're talking digital instant. Dare I say it even enjoyable?

Speaker 1  4:37  
Okay, now you've got my attention, so break it down for me. What are these new DMS systems actually doing that's so revolutionary. Okay,

Speaker 2  4:45  
so imagine this. You're sitting there signing the paperwork right and behind the scenes, the system is verifying your insurance information in real time. Oh, no more phone tag, no more. For faxes, it's instant,

Speaker 1  5:02  
 Wow. So instead of like, you know, digging through paperwork like a detective, they've got everything right there at their fingertips 

Speaker 2  5:09  
Exactly. It's all about data.

Speaker 1  5:12  
Okay, that's a game changer. But what about, you know, that mountain of forms and documents that that always seems to come with buying a car? It's gotta be a better way.

Speaker 2  5:19  
 You're speaking my language, those stacks of paper are a nightmare for everyone, but with these new DMS systems, automated workflows for managing all those documents, everything is digital, secure, easily accessible, trackable, and credit scores forget waiting for snail mail, they can pull credit reports instantly.

Speaker 1  5:36  
It's like upgrading from a horse drawn carriage to a high speed train. We're talking efficiency, transparency on a whole new level. And speaking of innovation, the article called out one company specifically that's really leading the charge in this DMS revolution measure one. It sounds like they're really shaking things up.

Speaker 2  5:55  
Yeah, they are. What I think is impressive about them is how they're tackling this major pain point of keeping those auto insurance policies updated, they've developed a tool that directly addresses that by linking real time verification and updates to the financing process.

Speaker 1  6:10  
Oh, wow. So it's like having a dedicated insurance guru working behind the scenes just making sure everything is accurate, up to date. That's amazing. So how does this How does this impact, you know, not just dealerships, but us, the eager car buyers out there. 

Speaker 2  6:24  
Well, for dealerships, it's a win, win, faster approvals, reduced risk, less time wasted on those tedious tasks. But for customers, it means a smoother, more enjoyable experience. You're in and out faster, less hassle, yeah, and you have that peace of mind knowing everything is being handled correctly.

Speaker 1  6:41  
This isn't just about making things easier. It's about transforming the entire experience of buying a car. Imagine a world where financing is the easiest part of getting a new car. It's almost it's almost too good to be true. It really is amazing to think about a world where financing is the easiest part. It feels revolutionary if technology can make something as complex as car financing so much easier, what other possibilities does that open up?

Speaker 2  7:07  
It makes you wonder, and this is just the beginning. As these systems get smarter, more connected, we can expect some really big transformations, like,
what give me the good stuff?

Speaker 2  7:18  
Think about it, highly personalized financing options, lightning fast approvals, a level of transparency that wasn't even a possibility before. It's about empowering both the dealership and the customer with information and tools. 

Speaker 1  7:31  
I like the sound of that this MeasureOne article focuses on the US market, but it really gets the wheels turning. How long until we see these advancements globally? Good question. How long until the entire car buying experience, from browsing online to signing on the dotted line is as smooth and stress free as ordering takeout?

Speaker 2  7:51  
I mean, the potential is huge. It shows how technology can not only solve problems, but completely change our experiences for the better, instead of dreading that trip to the financing office at the dealership, imagine actually looking forward to it, you know, a streamlined, personalized process that gets you on the road faster.  That's the dream. Okay, so next time you're a dealership and you start to feel that wave of paperwork panic setting in, remember this conversation. Future of car buying is looking pretty bright. It is faster, smoother. Dare I say it enjoyable. Dare to dream. There you have it. We took a deep dive into the wild world of dealership financing, talked about the pain points, and emerged into the light of all of the technological solutions that are coming up. The light at the end of the tunnel. It seems like the car buying experience is about to get a major upgrade, and technology is leading the way.