Common problems with traditional auto lender’s approach to vehicle titling
Even before the coronavirus pandemic, auto lenders faced loan perfection challenges. As just one example, one of our previous posts, The problem of modern auto finance, mentioned the increased popularity of selling cars on such online venues as Craigslist and eBay. Typically, these loan sources take more resources and time to administer and also tend to generate more exceptions.
Because of the pandemic, lenders have to cope with even more obstacles. A few highlights include:
- USA Today cited slower reporting from motor vehicle departments all over the country
- Many lenders have sent a lot of their in-office staff home to work remotely
- Economic uncertainty has raised concerns over an increase in defaults
During these times, lenders have to make improving their portfolios a priority. Otherwise, they may not get settlement funds and even find themselves out of compliance after audits. At the same time, banks and other auto lenders find their resources stretched thin for a variety of reasons. Meanwhile, outsourcing vehicle titling can provide successful, growing vendors with a cost-effective and even an essential solution.
The main benefits of outsourced vehicle titling
During a time when resources may feel stressed, relying on our loan perfection services makes more sense than ever. Take just a minute to see how our outsourced lien services will reduce workload while it makes portfolios more valuable.
- Enable growth without increasing staff: Despite COVID-19, many lenders enjoy stable or even growing businesses. Meanwhile, they need to deal with staff limitations because of social distancing measures and employees who have to cope with disruptions in their own families. Outsourced vehicle titling allows these lenders to adapt to their current situation and prepare for future growth.
- Mitigate exposure risks: Unperfected loan portfolios expose lenders to the possibility of not recouping their investment in the case of defaults or accidents. Here at Lien Solutions, we've had lenders come to us with more than 2,000 unperfected loans and $30 million in loss exposure.
- Update inefficient business processes: So many lenders still rely upon old-fashioned, time-consuming, and error-prone manual loan processes. Realistically, they may not have the resources to digitally transform their internal business at this time, so they can outsource to a vendor who already has high-tech, efficient systems in place.
- Improve turnaround time: Because of the way modern buyers shop for cars and because of work slowdowns caused by COVID-19, lots of lenders have suffered from processing delays that impact both their business and their clients. Lien Solutions already has the technology, relationships, and business processes in place to speed up the process.
Mostly, the way traditional lenders do business today isn't free, even if it's not yielding the best results. These financial companies can replace the excess costs of manual processes with a technology solution that can yield even higher profits and the opportunity to grow.
Work with a proven partner
Decrease risks and workloads while improving speed, service, and loan perfection by outsourcing vehicle titling to Lien Solutions. We will make your job easier and produce better results. To get started, simply call or email us to tell us about your business challenges, and we will offer a customized solution.