4 Ways Verification Automation Helps Car Dealers Stay Ahead of Online Competition
January 24, 2019
In 2016, Americans applied for $564.6 billion in auto loans. In 2017, that number increased $4 billion to reach $568.6 billion in car loans.
Customer demand is not the reason why car dealerships are seeing a decline in sales.
Missed acquisition opportunities are due to new competitors that are changing the game for car purchasing. As digital natives become mainstream car buyers with completely new expectations, they’re opting to purchase vehicles through digital, on-demand experiences.
Car dealers need to be able to verify buyers, payment ability, and financing applications without ever seeing a physical document or, potentially, the buyer. Here are 4 ways that identity verification and background check automation can help car dealerships stay ahead of the competition:
- Approve Loans Faster: Verification and background check automation can provide dealers with access to the most accurate qualifying data like utility, address, and employment directly from authoritative sources. This helps dealers quickly and confidently verify buyers, especially those in need of financing, so they can close more deals and move more inventory faster than ever before.
- Enable Online Transactions: Customer expectations have changed. Today’s most successful car sellers are catering to a new generation of technology-driven buyers who want the convenience of purchasing online. Identity verification and background check automation makes this possible by giving dealerships access to the most accurate loan-qualifying data (utility, address, and employment) directly from authoritative sources so they can approve new buyers without ever having to meet them in person.
- Minimize Drop-Off: Purchasing a car is a big decision for buyers, but many things can happen between the time it takes to get prospects from cold to closed. Identity verification and background check automation offers a seamless customer journey that reduces friction and streamlines purchasing, while minimizing sales funnel attrition.
- Demonstrate Compliance: Car dealerships are subject to the same regulations as banks and other financial institutions, given their ability to approve auto loans for car buyers. Identity verification and background check automation supports compliance with regulations like Anti-Money Laundering (AML) and Know Your Customer (KYC) by reducing fraud and increasing the company’s level of assurance. Ensuring your customers are capable of paying off a loan isn’t just good for regulatory compliance––it’s good for business.
Evident helps car dealerships meet new digital demands of online car buyers, and makes it easier for dealers to confidently verify and approve financing for buyers without ever having to see or meet them in person.
In addition to helping car dealerships increase their customer conversions and maintain a higher assurance level for new loan applicants, our platform also limits the dealership’s exposure to sensitive personal data. Evident’s proprietary data encryption makes it easier to collect the data they need to approve a loan or verify a buyer faster, but eliminates their need to hold unnecessary personal information in the process.
From improving the customer journey to increasing confidence in applicant verifications, Evident’s Identity Assurance Platform can save car dealerships time, money, and resources while minimizing risk and complexity.
Is Evident Right for You?
Evident’s Identity Assurance Platform leverages intelligent automation and hundreds of authoritative data sources to provide the most accurate and up-to-date background checks and verification results. If you’re looking for ways to reduce costs and save time while confidently verifying new car buyers and loan applicants, Evident is the platform to make that possible. Request a demo.
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