Editorial

The Benefits of eContracting: Why You Should Make the Switch

By digitizing formerly manual procedures, dealerships can operate more effectively and efficiently. Financing a business, however, is one sector that has been slow to adopt digital methods. Paper contracts may take up to a week to arrive at their destination. It takes a long time to complete the procedure, so that you may forget important details like signatures or pertinent information, and interest costs will increase. Every dollar counts in today’s economy, yet cutting corners in search of savings may lead to unhappy customers. Discovering a method to save costs while providing excellent customer service is a top priority.

You can submit contracts electronically to achieve these aims. A major hurdle is that many retailers are slow to embrace eContracting practices. Even though transitioning to eContracting may seem like it would cause major disruption to your everyday operations, you would be losing out on several advantages. These include:

Reducing inaccuracies

There are two common causes of contract inconsistencies:

Human error

The author of the contract may not have double-checked it or given the correct information. The contract’s receiver may have signed and initiated the whole agreement without reading it to save time, leaving in place any terms or circumstances that may have been unfavorable to either party.

Manipulation

After adding the signatures and names, the writer or the receiver “doctored” the contract. Regardless of the specifics, faults are too easy to make in conventional papers from both sides. Consequently, disagreements may arise when one or both parties have no legal standing.

The number of typos in electronic contracts is far lower. How?

  • You and the other party to an electronic contract may review and negotiate its terms on the same web page before electronically signing it.
  • Electronic contracts encourage a more cooperative approach whereby both parties may contribute to the contract’s creation and agree on commercial activities that will benefit both sides.
  • Input client information once to have it auto-populate other fields for both you and the receiver. Consistency of addresses, names, signatures, and initials is maintained throughout the contract.

Saved money

The costs of designing a floor plan have been increasing recently. Even after a car has been driven off the lot, it continues to accrue interest charges until the financing is in place. It’s easy to rack up a hefty interest bill if you sell a lot of automobiles each month and the average funding time for a transaction is five days. When you use eContracting, you may be able to get payment on the same day you submit the contract. By not sending every transaction by FedEx, you may reduce your interest payments and save money on delivery, allowing you to retain more of your money. These cost reductions might then be re-invested in machinery, infrastructure, and stock to make the business more competitive.

Improved connection with financial institutions

The lending industry is always on the lookout for new channels of communication with the consumer throughout the car-buying process. They’re joining the competition by offering in-store loan payment options. The lender may learn more about the borrower because of this increased transparency. However, the dealership’s participation is required for this to occur. The F&I manager will be able to electronically demonstrate to the client which lending institution will work with them to set up automated payments and manage their loan. Since electronic contracts are funded more quickly than paper contracts, lenders that have embraced eContracting procedures provide preference to dealerships that submit transactions electronically.

Better customer service

You can speed up the delivery of papers to clients via E-Contracts. Without waiting for paper copies to arrive in the mail, customers may digitally sign contracts whenever and wherever they want, using whatever device they choose. Using the autofill function of the electronic program, your clients only need to sign or initial the first section of a document; they will fill in the remainder of the document with their signatures.

Customers may now save time electronically signing contracts from their phone, computer, tablet, or another device. It’s ideal when a client is in a hurry to sign a contract but doesn’t want to wait for a paper copy to come in the mail. Clicking an “I agree” button or providing an eSignature are common ways for customers to sign legally binding contracts online.

Facilitating Lease Agreements

By standardizing lease agreements and coordinating them with your dealership’s procedure for retail contracts, eContracting helps streamline the leasing process.

The use of electronic contracts is rapidly becoming the standard. Retailers and financial institutions alike are getting on board. You get your money quicker, the lender saves time, and everyone benefits from the convenience of paperless transactions. Everyone benefits from the development of eContracting technology. In today’s increasingly digital environment, it makes good financial sense to implement an eContracting procedure by using the appropriate technologies.

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