From the Wires
ADP Delivers the Automotive Industry's First Completely Electronic End-to-End, Dealer to Lender Financing Process Solution
Volkswagen Credit and Audi Financial Services Become the First Manufacturer's Captive Finance Arms to Successfully Execute a Fully Electronic Financing Process Between Dealer and Lender
By: Marketwire .
Feb. 9, 2013 06:01 AM
CHICAGO, IL -- (Marketwire) -- 02/09/13 -- ADP Dealer Services, a leading provider of technology-based solutions for vehicle dealers, today announced the successful integration and deployment of its CRM, credit application, compliance, contract validation, and digital contracting solutions with Volkswagen Credit, Inc's FinanceSource, an integrated, credit, funding, pricing, and imaging solution for North American VW and Audi dealers. FinanceSource is the only currently available entirely electronic finance solution operating between dealers and lenders on a wholly integrated, single platform.
With FinanceSource, Volkswagen Credit (VCI) and Audi Financial Services (AFS) are able to provide F&I Managers with the ability to electronically submit financing deal terms and receive an immediate confirmation from the lender of the validity of those terms. This helps simplify the F&I process by eliminating data re-entry, reducing problem deals and re-contracting, and enabling faster receipt of documents.
Last November, an important milestone was reached when an Audi dealer in California successfully submitted the first fully electronic vehicle financing documents using ADP's Digital Contracting and VCI's FinanceSource technology. The success of VCI's FinanceSource eDocuments pilot puts VCI/AFS on track to be the first manufacturer-owned lender using a completely digital F&I contract process solution across its dealerships, utilizing ADP's and Open Dealer Exchange's Credit Application Integration, Contract Validation and Digital Contracting (Electronic Documents).
"With a Contract Validation mechanism in place, F&I managers can check the accuracy of any contract, before it's signed and submitted to the lender, to better ensure it meets the lender's requirements," said Paul Rindone, ADP's Division Vice President, Financial Services. "That means contracts get funded right the first time, improving the customer's experience, and improving cash flow for the dealers."
Using Contract Validation, a Volkswagen dealer can submit a deal to VCI, and within seconds, the F&I Manager will receive a validation summary, reflecting any out-of-balance variables that would cause an otherwise submitted contract to be rejected or receive a lower reserve. This all occurs before the customer signs the deal, so the F&I Manager can recognize and correct non-compliant contracts immediately. Most compliant deals will then be funded within one business day.
Validated contracts can be presented and signed electronically by consumers by using a tablet. Complete funding packets then are transmitted electronically to VW Credit for approval in minutes. The electronic transmission and approval eliminates the error-prone faxing process that exists with today's eContracting products.
"This integrated solution will help our Volkswagen dealers improve profitability and the overall sales experience by creating a more efficient and smooth funding process," said David Wicks, Audi Financial Services Vice President of Sales and Marketing.
"This was many years in the making, and we're so pleased that it is finally coming to fruition, because we believe it will really speed up the process and help make it a more error free process", said Rindone.
ADP, Inc. (NASDAQ: ADP), with more than $10 billion in revenues and approximately 600,000 clients, is one of the world's largest providers of business outsourcing solutions. Leveraging over 60 years of experience, ADP offers a wide range of human resource, payroll, tax and benefits administration solutions from a single source. ADP's easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world. For more information about ADP or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's website at www.ADP.com.
About Open Dealer Exchange
Founded in January 2009, the company is a joint venture between ADP Dealer Services, Inc., one of the world's largest providers of business outsourcing solutions, and The Reynolds and Reynolds Company, a leading provider of integrated solutions that helps automotive retailers manage change and improve their profitability. The company was created in an effort to transform the traditional automotive financing model in which dealerships leave their system-of-record during the credit process to a more streamlined model all within the DMS.
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