Global software and services provider Wolters Kluwer found that auto finance deals had a 109% growth in 2021 as more dealerships are moving towards digitized loan and document management.
According to a 2021 fourth-quarter report, the increase was over 918,000 more finance deals that leveraged e-contracts.
“Ultimately, effective eContracting solutions empower auto financing to ‘start digital and stay digital,’” Wolters Kluwer said. “The positive results are tangible: Faster, more accurate loan origination; Lower-friction, more convenient customer experiences; The potential for higher sales volume”
In 2021, 1.6 million auto finance originations used e-contracts for a total increase of 44% over 2020's use of e-contracts, according to Auto News.
The first three months of 2022 had an increase of 122% and is predicted to surpass the 2021 total.
The Wolters Kluwer analysis found that 9 million internal and external data were involved in e-contracting last year. That is more than 32%, or 28 million, auto finance transactions within the year. eContracting has been seen to disrupt the automotive industry despite “only one-third of all new and used auto loan transactions were originated using eContracts, meaning there’s room for growth,” according to Wolters Kluwer's Automotive Finance Digital Transformation Index Q1 2022.
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