5 Ways Auto Lenders Can Enhance the Car Buying Experience

The traditional auto lending process can be a long and arduous journey, met with anxiety and frustration for the customer. In fact, customers spend an average of 14 hours of online research and another three to five hours at the dealership. Between test drives, multiple rounds of negotiation, the trade-in process and finalizing the deal with a finance manager, buying a new car can easily eat up an entire day or even weekend.¹

Beyond the time commitment, the traditional auto lending process can also be a source of significant stress and anxiety. For one, potential buyers might not fully understand their own creditworthiness, leaving them uneasy and vulnerable.

Moreover, the act of applying for financing at a dealership can trigger multiple hard inquiries on the customer's credit report. These inquiries can negatively impact the customer's credit score, making it more difficult and expensive to obtain credit in the future. 

The traditional process can also strain the relationships between lenders and dealers. The back-and-forth negotiations and paperwork can create friction and damage what should ideally be a collaborative and mutually beneficial relationship.

All these factors combine to make the traditional auto lending process a major pain point for everyone involved. This highlights the need for innovative solutions that can streamline the process, reduce anxiety, and foster trust and collaboration between lenders, dealers, and customers.

Pre-Approval of One for Auto Lenders: The Solution for a Smoother Ride

Pre-Approval of One for auto lenders streamlines the lending process, offering a win-win solution for lenders, dealers, and consumers. 

By utilizing Pre-Approval of One, auto lenders can:

1. Create a Faster Time to Offer: Provide pre-approved offers in under 2 minutes, accelerating the sales cycle and getting customers behind the wheel faster.

2. Enable Soft Credit Inquiries: Conduct a soft credit inquiry by the lender that won't impact the customer's credit score, offering peace of mind and a positive initial experience.

3. Provide a More Consumer Friendly Environment: Lender soft inquiries create a smoother experience for consumers during and after the lending process by eliminating questions about hard inquiries.

4. Help Reduce Risk: Gather all necessary underwriting information upfront, allowing for informed decisions and minimizing the risk of defaults.

5. Strengthen Their Dealer Relationships: Foster collaboration and trust with dealers through a seamless and efficient lending process.

Partner with Equifax today and unlock the power of Pre-Approval of One. Our solution can transform your indirect auto lending process, leading to happier customers and a more efficient dealership experience. Are you ready to start enhancing the car buying experience? Explore Pre-Approval of One to get started!

Sources

1. Cartelligent