Jim Fitzpatrick: As more core shoppers do move online as we know, how will this impact the makeup of dealers customer bases?
Kait Gavin: Sure, absolutely. So we know today that about 83% of shoppers want to at least take part in at least one part of the transaction online. So if you think back to 10 or 15 years ago, most customers would walk into a brick and mortar store, want to touch and feel the vehicle and drive it off the lot. Today that’s becoming less and less applicable where dealers are getting customers from across the country, which makes it tricky for dealers to master 50 state Reg & Title rules for sure.
Jim Fitzpatrick: Exactly. That’s right. Almost impossible.
Kait Gavin: It’s almost impossible.
Jim Fitzpatrick: It really is. What’s holding dealers back from capitalizing on the growing market segment?
Kait Gavin: So I think it’s just that, we’ve seen just from the period of January to September of last year, 16% growth year over year in customers that are shopping online. And what that means is that they have to have a solution that helps guide them through that process to get the customer not only their vehicle, but their registration and title as well. And to have 50 state DMV experience is not an easy position to fill. So you really need tools and solutions to guide you through it.
Jim Fitzpatrick: That’s right. And if you don’t have them, then you can get into trouble pretty quickly. Right?
Kait Gavin: For sure.
Jim Fitzpatrick: If you think you know, or if you have your title clerk dabble in it, you’re going to be in trouble pretty quick.
Kait Gavin: Yeah. So if you’re not accurate with your taxes and fees, there can be a customer experience where they have to come in and cut a second check or the dealership may have to eat that cost, which can cost a lot of money.
Jim Fitzpatrick: Either way, it’s not a good situation.
Kait Gavin: Not a good experience.
Jim Fitzpatrick: No question. What can dealers do to overcome the complexities of out of state registration and titling?
Kait Gavin: So I think the tools are king obviously. Having support so that the registration and titling roles are clear and transparent offers a seamless customer experience. So that it’s not a hassle. It’s just a simple, easy process.
Jim Fitzpatrick: Can you tell us a little bit about the new enhancements that Dealertrack is debuting at NADA this year?
Kait Gavin: Yeah, absolutely. So I’m super excited to announce that we have a new robust RegUSA solution that offers new features. So when you enter our solution there’s a series of questions that help guide you through the transaction so that the dealerships will understand exactly which documents are required, which need to have what signatures, which require notarization. They don’t have to master that expertise. It’s there for them at their fingertips.
Jim Fitzpatrick: That’s fantastic. That’s a game changer for a lot of dealers.
Kait Gavin: Oh it’s a total game changer. Yeah. Anybody can walk off the street and use the solution and get it right the first time. There’s new functionality that allows them to compare deals side by side so the customer can make the best decision. Comparing tax and fees for various scenarios, they can make a big difference in the amount of what the vehicle cost for the customer.
Jim Fitzpatrick: No question about it.
Kait Gavin: And there’s new self service functionality, which will identify if there’s problems with the deal. If there’s a document missing or data that mismatches between documents, they can self correct and move it through the process. So simple and seamless.
Jim Fitzpatrick: As an old F&I guy myself, that comes in really handy because otherwise you’ve got deals, but sometimes you can’t even get the contracts cashed until some of the title work is done properly.
Kait Gavin: Absolutely, for sure.
Jim Fitzpatrick: That can put your contracts in transit and do a real tailspin.
Kait Gavin: Absolutely.
Jim Fitzpatrick: So with consumers, where they’re criss-crossing state lines for the right deal or for the right vehicle. We see that a lot in the used car side, right? Where somebody will say, “No, this is the specific used car that I want to buy,” and a dealer two states over has that vehicle. And so it’s imperative. It’s really a responsibility as a dealer to know that and have that information right? Because the consumer thinks that the dealer knows everything anyway, right?
Kait Gavin: Yes. Of course.
Jim Fitzpatrick: Yeah. They’re leaning on that. And so a program like this, what are some of the other things that you guys are going to be rolling out, not just at NADA but in 2020?
Kait Gavin: So RegUSA for us, for my group, the Reg & Title group is the big story for us. We’re also looking to see if there’s new states that we can venture into for instate solutions. It’s always exciting for us to expand our business that way. But really the big focus is for out of state transactions. Just making sure that we can help drive accuracy, drive a positive customer experience. We know that if that customer has a rock solid experience, they’re much more likely to come back and shop again at that same dealership. So that’s super important to us.
Jim Fitzpatrick: That’s exactly right.
Jim Fitzpatrick: Well, Kait Gavin, Vice President of Dealertrack Titling Solutions, I want to thank you so much. This has been very enlightening, and for dealers that are watching, make it an effort and get with your team to find out who’s doing this in your dealership now. I know the answer’s probably going to be nobody. We need this kind of technology. So, with a click of a mouse, you can have it. Right? That’s what it’s all about.
Kait Gavin: Absolutely. For sure.
Jim Fitzpatrick: Thanks so much for joining us.
Kait Gavin: Thanks for having me.
Jim Fitzpatrick: Yeah, absolutely.