As more and more state motor vehicle divisions adopt electronic registration and titling, dealerships find themselves overhauling their back-office processes to keep up. It can seem daunting, but digitizing reg and title can lead to cost savings in several key areas – some of which might surprise you!
Right there in black and white
This is one of the more obvious expenses related to manual registration and title, but the switch to online submission eliminates a lot of paper forms and copies from your office supply budget. When you consider the ink and toner savings as well, the economies increase.
With electronic reg and title, the “documents” to be sent to the DMV are completed online. In some states like California, customers can even digitally sign. All of that equals less paper, less fumbling for pens, and a more streamlined process for the dealership and the car buyer.
Rage against the machines
With paper receding into the background, you can also save on the costs of purchasing and maintaining many of your dealership’s printers, copiers and even fax machines. Imagine a world without paper jams, connection errors, and toner spills!
Electronic reg and title enables you to submit transactions online directly to the DMV with much of the customer and vehicle information coming directly from earlier stages of the deal process via integration with the DMS.
From Point A to Point B
That direct online submission means that the DMV gets what they need immediately, without the need for mailing, shipping, or sending a runner to get the paperwork where it’s headed. No need to worry about things like making an appointment at the DMV or having someone stand in line to drop off paperwork. No more postage or shipping costs. Think of how those savings add up!
More than just a parking spot
According to an NCM Associates Group Study in 2019, it costs your dealership an average of $37 in holding costs per day, per vehicle on your lot. Now multiply that by the average number of cars you sell each year. That’s what it costs you in overhead, floorplan and interest just to have a vehicle sitting idle – and those costs erode your profit margin and affect your bottom line.
Anything you can do to get a vehicle off the lot faster helps save on holding costs. For newly purchased vehicles, a fast and simple registration and titling solution can help get each customer out the door as quickly as possible.
Using a trade-in titling solution is another way to reduce holding costs. The sooner the dealership can get a clear title in hand, the sooner they can re-sell off the lot or at auction.
Choosing your electronic reg & title solution
Your registration and titling solution should give your back-office staff the tools they need to create and submit transactions quickly and easily. Look for a solution that integrates with your DMS for less data re-entry and improved accuracy. And consider using a trade-in titling solution to maximize your cost savings from trade-in to vehicle sold.
Want to learn more about how you can save on reg and title costs with Dealertrack? Request a live demo!