It’s something we didn’t see coming. But now that it’s here, we can’t ignore it. In the span of five short months, COVID-19 has changed the car business. The pandemic has changed how vehicles are sold. And how vehicles are purchased. Since the novel coronavirus hit the U.S. in March—and even after lockdowns have been lifted—more people have an interest in and a desire to purchase their cars online. In other words, as a dealer, the more you can do at a socially safe distance, the better. The numbers confirm this: an April survey administered by CarGurus, Inc., showed that 61% percent of consumers shopping for cars were open to purchasing online. Before the pandemic? That number was just a little over half that, at 32%.
To react to this increasing online demand, auto dealers across the country—from massive chains to small mom-and-pop dealers—are turning to e-commerce. And they’re finding that it takes more than a website with pictures of their inventory. Every step of the process needs the ability to be virtual, including F&I. At Vantage, we’ve invested $10 million in technology to help dealers provide financing options for car loans. By embedding our credit application on your site, we essentially become your F&I department—helping you keep the financing “in-house”, and elevating your profits on every deal. Vantage can connect you with a spectrum of national lenders that you may otherwise not have access to, and take care of every step of the process—from reviewing an applicant’s information and credit report to conducting interviews to conveying the lender decision, to preparing all the required forms and documents. As soon as the verification of lien has been recorded, funds are transmitted to you via ACH or check.
The simple truth is, now that consumers have bought into the ease of online car shopping, it looks like a purchasing tool born out of necessity may become the standard way of doing business. This new way of buying vehicles makes your F&I revenue stream and offerings are more critical than ever. Around 80% of NIADA dealerships don’t have their own in-house F&I department and are leaving money on the table. Don’t let that be you. Especially now, when you don’t need a physical F&I office in your dealership and can provide a virtual one instead.
In these constantly changing times, you can be sure of one thing: when it comes to keeping your dealership compliant, increasing your customers’ satisfaction, and increasing your dealership’s profit – letting Vantage provide your F&I will be to your advantage.
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