Today’s car buyers are starting their financing journey online—before they ever connect with a dealer. That shift is reshaping how lenders, OEMs, and digital retail partners need to think about their role in the shopping experience.
In the latest Forward-thinking Strategies podcast, Lender Strategist Andy Mayers explores how Cox Automotive’s Finance Services API is helping auto retailing clients meet this moment—and why it’s a must-have for anyone looking to grow and succeed in today’s expanded marketplace.
The New Starting Line: Financing First
According to recent Cox Automotive research, 88% of consumers want to complete some or all of their car-buying steps online. About half say they prefer to start by researching financing options first—and many begin that journey on websites other than dealerships.
That’s a clear signal: financing has moved up the funnel. Lenders, OEMs, and digital retail partners who rely solely on dealer referrals are missing opportunities to engage shoppers earlier and more effectively.
Many have read the tea leaves and reacted, leveraging Finance Services—an API that enables an online credit application—to pre-approve consumers for an auto loan, allowing them to walk straight into the dealership as contract-ready buyers. No lengthy F&I conversations. No time wasted. Just a faster, more confident path to purchase—and for lenders, a channel that supports customer acquisition, retention, and origination strategies.
Providing Finance Approval Up-Funnel Delivers Value Across the Board
For consumers: It delivers the convenience and control they expect from a modern digital shopping experience — especially in a market where affordability remains top of mind and time at the dealership is still their #1 source of frustration.
For OEMs: It creates a seamless Tier 1 to Tier 3 experience. Consumers can get pre-approved for financing directly on the OEM site and move seamlessly into the dealership experience — financing in hand and ready to complete their vehicle purchase—delivering a more satisfying customer experience.
For lenders: It opens a direct-to-indirect channel that captures early-stage shoppers and additional originations—driving internal efficiency, building brand value with customers, and strengthening dealer partnerships.
For dealers: They receive finance-approved, contract-ready buyers—reducing time to close and increasing profitability. And because the API is fully integrated with Dealertrack, the entire process—from application to purchase—is streamlined and optimized.
Built for Today, Ready for Tomorrow
As more steps of the car-buying journey move online, Finance Services is built to scale. New-form OEMs like Tesla and Rivian, as well as digital-first retailers like Carvana, have already embraced fully online buying experiences and stand as testaments to this growing trend.
Clients who allow consumers to apply for financing on their websites are answering the desires and expectations of car buyers today—and tomorrow. Meeting consumers when, where, and how they choose to shop maximizes untapped opportunities and provides a safe, controlled channel for growing originations and moving more metal.
A Smarter Way Forward
As Andy shared in the podcast, “You can’t sell many cars without financing. And Finance Services is the engine that makes that happen—online, in real time, and at scale.”
It’s a simple solution with powerful impact:
- Consumer convenience
- Operational efficiency
- Business growth & profitability
And it’s already powering thousands of transactions across the Cox Automotive network.
Want to learn more?
Consult with a Cox Automotive expert to explore how Finance Services can support your digital retail strategy.
