1. How will a Post Dealer Reserve World Impact the Sales and Finance Process?
I am Pete MacInnis, CEO of eLEND Solutions. I have been in the auto industry 35 years and have never been more excited about the Future of Auto Finance! I am honored to be here and I hope this historically boring subject of auto finance will be uncharacteristically engaging!
Pete MacInnis

6. The CFPB is determined to eliminate dealer finance participation and
CFPB to Hold Auto Lenders Accountable for Illegal Discriminatory Markup
CFPB examiners found that these indirect auto lenders had discretionary pricing policies that resulted in discrimination against African-American, Hispanic, and Asian and Pacific Islander borrowers. As a result, these borrowers paid more for their auto loans than similarly situated white borrowers. The CFPB states that discriminatory markups on auto loans may result in tens of millions of dollars in consumer harm each year!
CFPB’s September 17, 2014 proposed rule estimates that about 38 auto finance companies would be subject to this new oversight. These companies originate around 90 percent of nonbank auto loans and leases.
The CFPB is determined to eliminate dealer finance participation and
wants the auto industry to move to a flat fee finance model!
The CFPB is fighting about discrimination claiming that dealers are marking up minorities contract rates by $200-$300 over life of loan compared to non minorities. The Auto Industry is fighting about money.

7. Bill to Rescind CFPB Auto ‘Guidance’ Gains Support in Congress
September 17, 2014
Dealers are getting letters from lenders

9. Sales and Finance Process National Auto Dealer Survey Results
Opponents of CFPB have been mostly focused on the potential financial impact to dealers and they have paid very little attention to the potential impact on the sales and finance process.
Sales and Finance Process
National Auto Dealer Survey Results
September 2014

10. Sales and Finance Process National Auto Dealer Survey Results
80% of Dealers responded that their current sales/finance process takes 2 hours or longer.
40% reported a sales/finance process takes 3 hours or longer.
70% of dealers responded that the ideal end-to-end process should take 2 hours or less.  

11. Sales and Finance Process National Auto Dealer Survey Results
75% of dealers begin the financing process after the test drive. 30% not until after the negotiation and the customer is in F&I.
8 out 10 dealers reported that the current sales and finance process has a significant opportunity for improvement.

12. Sales and Finance Process National Auto Dealer Survey Results
90% of dealers agreed that a quick, efficient sales/financing process leads to greater customer satisfaction and results in higher CSI scores. 
86% of dealers agreed that negotiation and the F&I process are steps in the purchase process that customers dislike the most. 

13. Sales and Finance Process National Auto Dealer Survey Results
45% of dealers reported that capturing more detailed information, earlier in the process was the biggest opportunity for their dealership to streamline the sales & financing process.

14. Time is Money Automotive News Article Series
“Gone in 60 Minutes?”
It is closer than you think!
Time correlates directly to a positive or negative consumer experience.
Large Dealer Groups are investing heavily in streamlining the sales and finance process.

15. Consumers Want to Move More of the Car Buying Process Online
Transparency
E-commerce will force transparency to become a 2 way street, swinging the information pendulum advantage back towards the dealer. 15

16. THE EVOLUTION OF AUTOMOTIVE FINANCE IN A POST DEALER RESERVE WORLD !?
80’s
90’s
2000
2015 16

17. System Integration
Auto Finance Platforms will be seamlessly integrated with most vendor systems involved in the sales and finance supply chain.
System Integration 17

18. Finance Will Move to the Front of the Vehicle Purchase Process
Online Credit apps will match the buyer and their credit profile with the right car and the right loan programs at
the very front of the buying process. – all before the customer has even started the test drive.

19. Moving finance to the front of the sales process
will trim the average deal time by minutes
Interactive credit applications will provide direct, upfront access to dealership financing sources and real near-final terms of approval from multiple lenders at the very front of the car buying process. 15

20. Credit Powered Desk Tools
Technology will enhance communication between sales and finance departments at the point of sale.
Dealer desk tools will display a waterfall of lender programs, from basic credit filtering to fully automated loan decisions.
Lender credit decision results will be displayed instantly to the dealer and/or consumer at the point of sale. 17

21. QUESTIONS / ANSWERS / OPEN DISCUSSION
This is where dealers can, and should, start focusing. Whether or not the CFPB regulations come, there are serious issues with the current sales and financing process, from the unwieldy four hour transaction process to multiple and expensive deal unwinds/rewinds.
Today, consumers have to slog through time-consuming stages in the dealership sales and financing process: trudging from test-drive, to sales department, to F&I.
QUESTIONS / ANSWERS / OPEN DISCUSSION 21

22. Contact Info
Full Name:
Company:
Job Title :
Pete MacInnis
eLEND Solutions
Chief Executive Officer
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using hashtag #DD17 for a chance to win an iPad. 24