BURNABY, British Columbia -

While enhancements in auto financing certainly have been made over the years, a pair of surveys orchestrated by Inovatec Systems Corp., revealed areas where improvements still could be made for the benefit of finance companies and consumers.

This week, Inovatec began with the results from its latest survey that touched on consumer pain points associated with finance companies when financing a vehicle.

When asked about the biggest complaint associated with financing their last vehicle, 56.8% of consumers said that finding a bank or finance company that would approve the purchase of the vehicle was their biggest complaint. 

An additional 37.8% of those respondents said there were too many steps involved, and 30.6% said the processing time was their biggest complaint.

In a separate survey, Inovatec recapped that finance companies were asked to identify issues and challenges with their current processes in their organization. More than 35.6% of participants reported operational issues were a struggle, while 28.1% reported issues in lack of efficiency.

“The findings show a clear discrepancy between lender processing systems and customer needs,” Inovatec said in a news release. “Consumers today desire quick outcomes, yet also expect personalized customer experience.

“Companies are searching for (artificial intelligence) tools that allow them to increase customer satisfaction through digital retailing,” the company continued.

Furthermore, consumers were also asked what factors would make the buying process easier in the future. More than 62.2% said that quicker, more simplified processes were top of mind.

Another 29.7% of consumers reported that in-real-time access to updates on the status of their application would simplify the process, and 24.3% said that access to pre-qualification tools would improve their experience.

When consumers were asked about their level of understanding on the terms of their loan, Inovatec found that only 34% reported they fully understood their financing contract. Meanwhile, 66% of consumers reported they either do not understand the terms of their loan at all, or somewhat understand but do not know every detail.

Bryan Smith, head of consumer growth and partnerships at Inovatec, emphasized this particular statistic should be concerning to finance companies, specifically as the misunderstanding of contract terms can significantly affect default.

“The survey shows a clear divide between lender process system efficiency and customer needs that affect the overall customer experience,” Smith said. “Lenders need access to updated systems that integrate artificial intelligence to improve their processes, which has a trickle-down effect to customers over time.”