Online credit applications are a challenge for auto dealers. From a historical perspective, they have not produced sales. They are an afterthought for a dealer because so few of them are submitted, they are typically from credit-challenged customers and they do not convert to sales. For dealers, credit applications have not historically been of value.
However, research says that 64 percent of consumers who are shopping online for vehicles are also shopping for auto financing. About 50 percent of them think they will get their financing through their own credit union, and only about a third of them will even consider a dealer for financing. The dealer is not in touch with the consumer or their demands and preferences in the marketplace.
Manufacturers, on the other hand, do not advertise vehicles without talking about payments and interest rates. Financing is an integrated component piece of those advertising and marketing campaigns at the franchise level. Dealers do not want to discuss financing during the sales process. At the dealer level, there is a total disconnect in the sales process flow.