The auto financing (and auto refinancing) industry has been slow to embrace technology in the past. While you may have found a few lenders that would digitize parts of the process with an e-signature here and there, most steps were done face to face. It was hard to avoid sitting in a bland cubicle discussing interest rates and term conditions.
But all of that is changing now. If the pandemic has taught us anything, it’s the importance and necessity of conducting business online. The auto financing industry was essentially strong-armed into embracing technology. So now, a process that was traditionally 80% in-person and 20% digital, is now flipped. And in many cases, it is 100% digital.
So how has technology affected auto refinance? Well, it’s made it faster, cheaper, and way more convenient.
Here are the top 5 ways that technology has improved auto refinancing.
It's Easier to Search and Compare Vehicle Refinance Quotes (And That Means Better Terms)
Twenty years ago, the decision to refinance your car loan would have meant an all day excursion around town to your local banks. It would have meant sitting with lenders and going over personal details again and again and again, just to get a few different quotes to compare.
But now, with just a few clicks of your mouse you can have offers from ten different lenders, all with different terms and conditions. You are not limited to the banks that are in driveable radius from your house. Instead you have thousands upon thousands of lenders across the country that can assist you with your vehicle refinance.
And what does all the competition create? Better terms for you. Since so many lenders can reach you, they need to be more competitive to gain your attention. Whether it’s with lower interest rates, lower origination fees, or a more forgiving repayment policy, lenders now need to woo customers more than ever.
The Application Process is Much Faster
It’s hard for many of us to imagine a time when everything was pen and paper, but refinancing used to require a discouraging amount of paperwork. And many times, the tediousness of manually filling out all of that information meant that people often filed incomplete applications. In fact, some lenders estimate that 30% of all applications they received were incomplete.
With applications now online, incomplete applications are a thing of the past. All applications have required fields that must be filled out to continue. This means that lenders don’t need to chase down applicants to finish paperwork.
Faster Vehicle Refinancing Applications and Approvals Mean More Savings for You
All of the digitized applications make it more convenient and way faster for consumers. But this also equals mega savings, for the companies and for you.
Lenders estimated that a combined refinance application and loan approval used to take about two hours before everything shifted online. From going over the application information, verifying the information, chasing down incomplete information, contacting the credit bureau – the list goes on and on. There were so many steps that are now digital and oftentimes automated.
Think of all that time that is saved. And since they don’t have to pay employees to track down all of that information, they can save a lot of money and use those resources to track down more potential consumers.
Saving that amount of money on their end allows them to become more competitive and pass those savings onto you. After all, they have a lot more competition now as there are more vendors vying for your business.
Easier and More Convenient Customer Experiences
The ease and convenience of refinancing online has made for better overall consumer experiences. Here are a few of the ways that technology has helped customers.
Online reviews guide consumers towards the best refinance companies
If there’s one thing the internet loves, its reviews. It has never been easier to gauge consumer experiences with a company. Easy access to customer feedback on websites like TrustPilot and Better Business Bureau can help customers decide which companies are best suited for their needs.
E-signatures and online document portals make providing data easy
You no longer need to physically deliver documents, which makes refinancing so much easier (there’s A LOT of paperwork involved). In the past you needed to fill everything out with the lender, run home to grab documents you forgot, come back, sign more papers, and possibly run back home if you forgot something else.
But now everything can be done from the convenience of your couch. You can scan and upload (or even just take a picture with your phone) all of your documents and then sign electronically. It doesn’t get much easier than that!
Data encryption keeps your information much more secure than physical documents
Advancements in data security also creates a safer space for your personal information. Through encryption and secured servers, your personal information is much safer online than it ever was sitting on a lender’s desk.
There Are Now Companies That Specialize in Refinance
Refinancing used to be a side business for dealerships and lenders. It was something that you could do through these traditional lenders, but it was always an afterthought of their business model.
The ease of technology has created a space for companies that specialize solely in auto refinance. Companies like Auto Approve are dedicated to making the auto refinancing process as easy and convenient as possible.
Auto Approve essentially does the shopping and comparing for you. By simply requesting a quote and filling out some basic information, they can get you quotes from different lenders across the country in minutes. Since they focus on refinance, they know what terms and conditions you should look for and can guide their customers towards the best deals.
So, Why Choose Auto Approve for Your Refinance?
Auto Approve specializes in auto refinancing and knows the industry inside and out. They have a dedicated team that is committed to saving you money and creating a positive consumer experience. Here's why Auto Approve is the right fit for your vehicle refinance.
- Our customers love us! With an A+ rating from the Better Business Bureau and a 96% would-recommend rating on Lending Tree, you know you are in good hands.
- We give personalized service. While technology is great, sometimes you just want to talk to a real person. That’s why we have live agents to help you every step of the way.
- We don’t do markups. While some of our competitors tack on additional fees and percentages to their quotes, we never markup the prices we pass on to you.
And that’s how technology has improved the world of auto refinancing.
Interest rates are historically low. It's time to refinance your car before the rates are set to increase.
Ready to start saving money today?