(As published on Used Car News)
Adoption of digitized contracting and documentation workflows by auto retailers and their lending partners that foster back-office efficiencies saw a continued upward trend that mirrored auto sales activity, according to analysis by Wolters Kluwer Compliance Solutions from its Q2 Auto Finance Digital Transformation Index.
“The Q2 2025 Auto Finance Digital Transformation Index clearly underscores the imperative for digital workflow adoption in the auto industry,” said Matthew Babcock, digital lending product strategy for Wolters Kluwer. “From significant operational efficiencies to enhanced customer experiences to faster transactions and reduced paperwork, digitization is providing the strategic advantages that are foundational to the future success and resilience of auto finance.”
Key findings from the Q2 2025 index
eContracting (auto): Digital contracting in auto finance continues its upward trajectory, underscoring the industry’s ongoing commitment to streamlined, paperless workflows.
- Quarter-over-quarter growth: eContracting volume increased by 7.07 percent from Q1 2025 to Q2 2025
- Year-over-year growth: A notable 9.26 increase increase was observed from Q2 2024 to Q2 2025
- Four-year trend positive: The long-term trend highlights substantial digital adoption, with a remarkable 116.26 percent growth in eContracting dating back to Q2 2021
This consistent growth in eContracting during the second quarter aligns with the overall US auto sales activity, which saw the forecasted new-vehicle sales pace in June finish near 15.3 million, up from 15.0 million in June 2024, as reported by Cox Automotive.
