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Majority of Consumers Report Complaints Related to Time and Efficiency in the Automotive Lending Process
Inovatec Systems Corp., a provider of industry-leading, cloud-based software solutions for all financial institutions, today announced the results of its latest survey, revealing consumer pain-points associated with lenders when financing a vehicle.
When asked about the biggest complaint associated with financing their last vehicle, 56.8% of consumers said that finding a bank or lender that would approve the purchase of the vehicle was their biggest complaint. An additional 37.8% of those respondents said there were too many steps involved, and 30.6% said the processing time was their biggest complaint.
In a separate survey, lenders were then asked to identify issues and challenges with their current processes in their organization. Over 35.6% of lenders reported operational issues were a struggle, while 28.1% reported issues in lack of efficiency. The findings show a clear discrepancy between lender processing systems and customer needs. Consumers today desire quick outcomes, yet also expect personalized customer experience. Companies are searching for AI tools that allow them to increase customer satisfaction through digital retailing.
Furthermore, consumers were also asked what factors would make the buying process easier in the future. Over 62.2% said that quicker, more simplified processes were top of mind. Another 29.7% reported that in-real-time access to updates on the status of their loan would simplify the process, and 24.3% said that access to pre-qualification tools would improve their experience.
When consumers were asked about their level of understanding on the terms of their loan, only 34% reported they fully understood their loan. Sixty-six percent of consumers reported they either do not understand the terms of their loan at all, or somewhat understand but do not know every detail. This statistic should be concerning to lenders specifically as misunderstanding of loan terms can significantly affect loan default.
“The survey shows a clear divide between lender process system efficiency and customer needs that affect the overall customer experience,” said Bryan Smith, Head of Consumer Growth and Partnerships at Inovatec. “Lenders need access to updated systems that integrate artificial intelligence to improve their processes, which has a trickle-down effect to customers over time.”
About Inovatec Systems Corp.
Inovatec Systems Corporation is an industry-leading provider of cloud-based software solutions for automotive and equipment financing institutions. The seamless platform is ideal for external partner and customer communications through a robust ecosystem that streamlines the process of crediting, auditing, funding and income verification for finance applications. For more information, please visit https://www.inovatec.com/.