El Campo Cycle Center, an independent motorcycle, off-road vehicle, ATV, and outdoor power equipment dealership, has been demoing e-contracting capabilities from Honda Motor Finance, which has improved the application submission process and allowed the dealership to close more sales.
El Campo Cycle Center has used e-contracting to finance three Honda motorcycles in the past 10 days, using an iPad app to complete and send contracts digitally, Finance Manager Alyson Irby told Powersports Finance. By comparison, the dealership financed two Honda units — without e-contracting — in all of September.
Before the pilot started two weeks ago, El Campo Cycle Center was having trouble getting applications submitted smoothly.
“Originally, we were having an issue with pretty much every one of our contracts getting sent back,” Irby said. “It wasn’t so much that there was anything super [wrong] on the contract, but we had to fill them out by hand. We were having a lot of our contracts returned, which means late fundings and things like that. It was really tying us up.”
If something was miscalculated on the form or it was illegible, the contract would be sent back to the dealership, and it was getting to the point where getting financing directly from the OEM was frustrating, Irby said.
The e-contracting system, meanwhile, can let the dealer know instantaneously if an error has been made, which improves approval speed. “It really has helped with our funding times a lot, because we’re not having any contracts sent back,” she said. “We do not have to make corrections, and we’re not having customers come back in and re-sign forms.”
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