Auto dealers embrace simplification: Insights from Lending Tech Live ’24

At Origence’s Lending Tech Live ’24, a panel of auto dealers shared their insights on the evolving landscape of auto financing. The panel featured industry experts Cody Done, director of retail lending at Ken Garff Automotive, Jason White, vice president of Schomp Automotive Group, and Kent Ketterling, executive manager at Maita Automotive Group. These leaders discussed the pressing need to streamline processes and optimize their lender networks.

Navigating complexities in auto financing

During this discussion, the panelists highlighted the myriad challenges they face, from fluctuating interest rates to the intricate needs of customer financing. The consensus was clear: simplifying workflows and selecting lenders who can streamline operations is crucial. This strategic shift is not just about efficiency; it’s about enhancing the customer experience. However, this move has left credit unions pondering their role in this new dynamic.

Reevaluating lender networks

Traditionally, dealerships have maintained extensive relationships with a variety of lenders to offer competitive rates and favorable terms to their customers. However, the administrative burden of managing these relationships has become increasingly complex. The panelists confirmed that maintaining multiple lender partnerships demands significant time and resources, leading to inefficiencies. In today’s fast-paced market, speed and simplicity are paramount, prompting dealers to streamline their operations. This is where credit unions have a perfect opportunity to increase market share via strategic lender networks.

The role of credit unions

Credit unions have emerged as valuable partners for auto dealers, known for their competitive rates and exceptional service. Consistency in lending practices has been a major factor in maintaining these partnerships. Unlike traditional lenders who may fluctuate in and out of the market, credit unions offer stability, allowing dealers to better plan their finance offerings. Despite these benefits, dealers are still prioritizing lenders based on their speed to decision and funding, ensuring their processes remain efficient.

Technology: A game changer

Technology continues to play a pivotal role in connecting dealers with credit unions. The panelists emphasized the importance of digital solutions that facilitate these partnerships. Specialized platforms provide dealers with access to a national network of credit unions through a single application portal. Indirect lending technology can seamlessly integrate with the dealer’s dealership management systems (DMS) or customer management systems (CRM), reducing the need for duplicate entry, allowing for a smooth flow of information, minimizing the potential for errors or delays, and enhancing the overall customer experience.

Looking ahead

As the market evolves, more than 20,000 dealers across the nation are leveraging indirect lending technology via CUDL to enhance their credit union partnerships. This technology positions credit unions as strategic partners, ensuring they remain relevant in the competitive auto financing landscape. To learn even more about indirect lending solutions from Origence, click here.