Providing customers with accurate payment quotes online has become a pressing issue for car dealers. Joining us on the latest episode of Inside Automotive is Pete MacInnis, CEO of eLEND Solutions, who says mismatched finance terms are not only frustrating buyers but also costing dealerships money and long-term loyalty.
During today’s discussion, MacInnis analyzes the recent eLEND Solution study that examines thousands of credit applications submitted to more than 100 lenders. The findings revealed that only 1.6% of applicants were approved as submitted by dealers on behalf of the customers. On average, lender approvals came back $32 higher per month for new vehicles and $36 higher for used vehicles compared to the original quotes.
To see if dealers’ experiences aligned with the data, eLEND Solutions launched an industry-wide finance survey. Early results confirm the study’s conclusion:
- 76% of respondents said they see higher-than-quoted payments on new cars.
- 81% agreed that the same was true for used vehicles.
- 55% reported losing up to 5% of sales due to mismatched payments.
- 86% said front-end gross profit fell between 5% and 20% due to resolving discrepancies.
MacInns confirmed the company will be releasing the full report data soon.
“The data matches the finance study to a T.”
The impact goes beyond profitability. When leaders alter terms after the sales process begins, dealers face dissatisfied customers and reduced trust. According to MacInnis, this also undermines F&I penetration, since frustrated buyers are less likely to purchase add-ons.
He then points to Carvana’s rebound as an example of the power of transparency. “They did what they said they were going to do, the deal didn’t change,” MacInnis said. “That’s the difference.”
In addition, part of the problem stems from outdated quoting practices. Many dealership tools still rely on legacy FICO score brands, while lenders today use more sophisticated, AI-driven decisioning models. As a result, initial payment estimates rarely match final approvals.
Ultimately, MacInnis argues the solution is clear. Real lender finance approvals must be integrated at the start of the sales process rather than siloed in F&I. eLEND Solutions is currently working toward this with a suite of products that combines credit tools, fraud prevention, and finance solutions designed to deliver accurate, real-time payment quotes.
