Non-prime lenders are embracing new technology and looking for further efficiencies in facilitating their business online. eContracting appears to be the next major hurdle in this technology race.
The 2004 Non-Prime eContracting Survey included 16 non-prime automotive lending executives who provide sub-prime and non-prime loans directly through auto dealers. This survey group accounted for over 1.3 million auto loans funded in 2003. For the purposes of the survey, eContracting was defined as developing, negotiating and signing auto loan contracts electronically.
Initially, each of the lenders was asked if their companies were currently utilizing eContracting to implement consumer contracts through dealers. None of the respondents surveyed were currently using eContracting to facilitate the lending process with their dealers.
|
|
Are you planning on implementing an eContracting solution?
Of the lenders surveyed, the majority of them indicated that they would be using eContracting in the future.
If yes, when?
Within the next two years, the majority of non-prime lenders expect to be using eContracting to facilitate business with their dealers. The survey indicates that less than 20% of the participants plan on implementing eContracting this year.
|
|
Please rate the following functionality in terms of their importance for implementation as part of an eContracting solution:
Non-prime lenders are looking for efficiencies in managing the trailing documents associated with their unique lending needs. Document storage or vaults along with the integration of their existing systems are also high on their functionality criteria.
|
|
Please rank each of the following, in terms of the potential challenges surrounding implementation:
The greatest challenges in implementing eContracting include apprehension with both security and legal issues. Dealer adoption and internal organizational resistance seem to be low on their list of concerns.
|
|
What are the ROI factors driving your interest in eContracting?
The key factors driving interest in eContracting among this group are dealer satisfaction, gaining efficiency through a streamlined contracting process as well as the anticipated reduction of errors.
|
|
Return to News & Events
