Featuring AVP/Lender Strategist Andy Mayers with insights from the latest Cox Automotive Research
Speed and clarity are everything in today’s competitive auto finance landscape. Lenders are under pressure to approve contracts and fund deals faster—without sacrificing compliance or accuracy. But one overlooked step may be slowing you down: how you communicate credit stipulations.
You might think your dealer partners have this down. After all, they’ve learned your acronyms and shorthand — “POI” for Proof of Income, “POR” for Proof of Residency. But consider this: each year more consumers are taking financing steps online and getting pre-approved before ever setting foot in a dealership.
Maybe you’re not seeing this trend yet. But according to Cox Automotive’s annual Car Buying & Financing Journey studies, the trend is accelerating. As Gen Z enters the market and Baby Boomers age out, digital-first expectations are reshaping the car-buying experience. These tech-native consumers expect a seamless, self-directed journey—one that mirrors how they buy everything else online. And that includes financing.
Here’s where credit stipulations can either align—or collide—with that experience.
Affordability concerns are driving more shoppers to start their financing research online. In our latest study, more than half of buyers researched financing on lender and third-party websites. About a third applied for financing outside the dealership. Now imagine one of these applicants has excellent credit and appears—at least preliminarily—to be a strong candidate for financing. Would they know which document to upload to satisfy your “POI” requirement?
When stip requirements are vague or inconsistent, it slows everything down. Dealers spend time chasing documents and Lenders waste their analysts’ time reviewing the same application as stips are received. And that translates to deals getting delayed—or worse, unwinding.
Structured Stips solves the problem by embedding clear, well-defined document requirements directly into the credit application workflow. Whether submitted by the consumer or dealer, everyone receives the same set of expectations upfront. All it takes is a simple code enhancement to your LOS—and lenders who’ve implemented it are seeing measurable gains.
Lender Benefits:
- Cleaner Applications: More complete and accurate submissions the first time.
- Faster Decisioning: Less back-and-forth and manual follow-up.
- Accelerated Funding: Fewer delays from approval to funding.
- Stronger Dealer Relationships: Help dealers close more deals, faster—making your lending program more attractive.
Value Across the Journey:
- Consumers get transparency and guidance, reducing confusion and delays.
- Dealers spend less time chasing documents and more time closing deals.
- Lenders streamline workflows and strengthen their value proposition.
Structured Stips are a simple, scalable way to help lenders win more business by making it easier for consumers to take financing steps online and for dealers to work their deals efficiently.
And it’s not just theory. This forward-thinking strategy is backed by the latest Cox Automotive research, which highlights the growing demand for digital efficiency and transparency in auto financing.
Ready to Learn More?
If you’re looking to streamline your credit application process, improve dealer satisfaction, and fund deals faster, it’s time to explore Structured Stips.
