If you are an auto dealer, auto lender or insurance company, one of the best decisions you can make for your business is to invest in auto insurance tracking. It not only helps to increase your profits and mitigate risk, but it allows you to effectively track insurance coverage, automate your customer communications, easily store and pull reporting and so much more! However, not all auto insurance tracking is created equally. You want to ensure you choose the right software that meets the needs of your business. With our intuitive technology and premium features, when you choose our software, you are guaranteed to have the most advanced insurance tracking solutions in the industry.
With modern technology constantly evolving and adapting it’s led to a massive uptick in automation. Seemingly every industry now utilizes automation within the day-to-day functions of their business. Yet, the industry that has really seen a significant boost from automation has been the auto industry thanks to the powers of an auto loan collection system also known as a loan management system (LMS), which provides exceptional benefits for lenders and an easier way to communicate with buyers.
Compared to other outdated legacy lending systems, an automated loan management system holds a number of distinct advantages including superior customer success, refined decision-making accuracy and all but eliminates the need for paper documents. In order to properly maximize your loan management system, we’ve outlined a few of the benefits an LMS provides and how when paired with the likes of insurance tracking and payment processing can drastically improve your company’s ROI.
Today, the overwhelming majority of new car buyers set up their financing through a dealership, which in turn forces lenders to search for the right dealer management system (DMS) to handle all of their business needs. However, as your business grows so does your list of needs and expenses.
A dealer management system still might manage to work fine in some cases, but the reality of it is that a loan management system (LMS) is far better suited for lenders both big and small. There are a number of advantages a loan management system has over an out-dated dealer management system, most notably coming from the fact that an LMS utilizes a modern cloud platform which provides a seamless customer experience and superior decision-making accuracy.
Interested in taking a more in-depth look at all of the key advantages a loan management system can offer? Verifacto’s proprietary LMS was specifically designed for car dealers to fully manage all of their loans from top to bottom. Before fully diving into the benefits of an LMS, let’s examine the differences between a loan management system and dealer management system and why lenders who still use a DMS for managing car loans could be holding back their business.
Today, many auto lenders use an auto loan management system that is inadequate when it comes to properly managing their loans. If a loan management system is lacking important features, lenders run the risk of making mistakes through inefficiencies and late payments—not to mention an increased insurance risk. As a lender, you know that most of the profit comes from the term of the loan based on interest and frequent payments. If you can’t manage your loans in the most efficient way possible, you’re going to increase your risk, overhead, and lose money.
After an auto loan is originated, most of the profit for a lender is received throughout the term of the loan. This is based on interest and steady payments. However, making sure to collect all the payments with interest and know the car is always insured is not an easy task which leads to a huge overhead when the right software is not used.
When a borrower files for bankruptcy, lenders suddenly find themselves competing with other creditors trying to recover any portion of the borrower’s limited funds. In most cases, the lender is left wondering if, and when, they’ll ever recover their debt, and if so, how much can they possibly get back?
As an auto lender or dealer, you must take the correct steps involving auto insurance tracking. If one of your borrowers doesn’t have proper car insurance and they are involved in an accident, your company is now at risk. Auto insurance tracking is tedious. From keeping up with your portfolio to contacting every borrower, there is plenty of room for mistakes. This is where Verifacto’s game-changing software comes in.
Verifacto is a leading provider of cloud-based software that enables auto lenders and dealers to quickly and effectively track each borrowers’ auto insurance status. Our software provides a revolutionary and comprehensive platform to help lenders and dealers manage and reduce insurance risk at their company, so an uninsured borrower never falls through the cracks and your company remains completely risk-free.
Despite its importance, many drivers in the United States do not have auto insurance. When a borrower leaves a dealership, they might have car insurance at that moment, but due to difficulties in payment, they could end up allowing it to lapse leaving the lender’s collateral unprotected. Auto insurance prices have skyrocketed making it more difficult for drivers to maintain the proper coverage. When this happens, the lender’s business is suddenly at risk. This is where lender-placed insurance becomes highly valuable.
Dealers, financers, and insurance companies are taking a high and unnecessary risk if they don’t have a strong auto insurance tracking software system in place. Accidents from uninsured vehicles happen all the time and if a customer is involved in an accident and the lender is unaware of their insurance status, the company will take a major hit.
Verifacto’s Insurance Tracking Software is designed to take the stress off auto companies and help keep them on top of their borrowers’ insurance status at all times protecting them from unexpected losses. The insurance tracking platform provides better communication with borrowers and explains how they can easily fix their insurance deficiency. The platform also follows up with each borrower until the risk has been resolved ensuring nothing falls through the cracks.
One of the biggest concerns in the auto industry is ensuring borrowers can make their car loan payments on time. At Verifacto, our goal is to provide software that makes the loan payment process easy to use for both lenders and borrowers. The easier it is for a borrower to make a payment, the better the chance lenders will get their money on time.