Motor Vehicle Lenders Need Greater Support
Lenders have been getting short-changed from motor vehicle title service providers who have been slow to understand the unique needs of lenders in the titling process.
Automobile dealers have traditionally gotten the most attention from service companies. This has been due to the nature of dealers’ needs. Dealers usually process a large number of transactions, but these transactions don’t involve a lot of detail and are thus easy and quick to handle.
Motor vehicle lenders, on the other hand, face a different situation. Unlike those of dealers, lenders’ title transactions are more complex and take longer to work through the process. A dealer’s title transaction revolves around the vehicle sale. Once the vehicle has been sold and the title processed, that’s the end of the dealer’s involvement. However, for a lender, the title process extends throughout the life of the vehicle loan, and as car and trucks have gotten more extensive, a length of a typical motor vehicle loan has grown, with many lenders now offering up to 72 months to pay. This means lenders’ title processing times have also gotten longer.
Lenders’ motor vehicle loan portfolios represent valuable collateral. These portfolios need to be secured and perfected over the entire lives of the loans. Lenders, however, are finding service providers are not well attuned to their unique title management needs. They want a comprehensive suite of lender-specific solutions designed for each stage of the loan cycle. This suite should help lenders contend with a cumbersome workflow, deal with the challenges of working across multiple jurisdictions, and provide support and seamless integration with existing systems.
Lien Solutions has been providing life-of-loan solutions for motor vehicle lenders for nearly 40 years. We understand the industry’s unique titling needs. Our comprehensive Web-based applications address lenders’ specific titling requirements.
We’ve written an informative white paper that offers greater insight into finding and choosing a title service provider that can meet your needs and give you support you can rely upon and trust. You’ll learn how to find a provider that will help you reduce risk, improve your workflow and take advantages of proven best practices others have used to succeed.