When you take a vehicle in on trade, it starts out at the dealership as an honored guest. After all, it’s there to be re-sold at a profit.
But when it takes a long time to get a clear title, soon that same vehicle reveals its secret identity as a freeloader: a trade-in without a clear title that takes up space on your lot, costs you interest, and racks up other holding costs that eat into your profitability day by day.
According to Dealertrack data, the average industry timeframe for vehicle title release and payoff is 18 days or more. And data from a 2019 NCM Associates Group Study puts average holding costs at $37 per day, per vehicle. So that means the average freeloader chews up nearly $700 in profit potential while sitting idle on the lot waiting for the lender to receive the payoff and ship the title back.
Turning Freeloaders into Profit Earners by Shortening Their Stay
Dealertrack manages paper and electronic titles for numerous lenders, which makes them uniquely positioned to speed trade-in title release for dealers. Dealertrack Accelerated Title® helps a dealership complete payoff and title release for trade-ins up to 70 percent faster, so the clear title arrives in as fast as 4-6 days.
That means you can hustle those freeloaders off the lot more quickly, help maximize your profit potential, and see the cash flow from re-sale or auction with less delay.
There’s an old saying, “Every guest brings you happiness. Some when they arrive, and some when they leave.” Accelerated Title can help ensure that your trades don’t overstay their welcome so they can bring your dealership happiness – and profitability – coming and going.
