Five advantages of a credit API for a car dealership

Five advantages of a credit API for a car dealership
Five advantages of a credit API for a car dealership


Car dealerships have become one of the sectors with the highest digitization margin. The way you buy a car has completely changed recently and this trend seems set to be consolidated in the future while being driven by new technologies.

This is with good reason, according to a recent study by Motork, 62% of car buying processes in Europe started on a smartphone, and this percentage will increase to 86% over the next three years. Moreover, 28.7% of all online requests for car information and quotations that were served in less than 10 minutes ended in a sale.

However, dealers do not appear to have adapted to this change in consumer preferences. That’s why APIs can give the ultimate boost to the automotive industry by providing an added financing service to their customers quickly, flexibly and, of course, economically.

Credit APIs, an option that enables the digital transformation of dealers

The automotive industry is one of the sectors that, by its characteristics, can benefit most from banking infrastructure opening up. Financing is present in almost all car purchases, but loan application processes are sometimes slow and do not always meet the customer’s needs.  Therefore, it is important that dealers are able to offer the financing product that best suits each buyer’s needs.

Faced with this reality, there is no doubt that dealers must consolidate their digital transformation as other industries are already doing. And one of the factors that can drive and address this digitization are banking APIs, especially in everything to do with the dealer’s financing options, which is one of the main barriers when closing a high-cost purchase. They can thus bring real value and improve their customers’ experience. Let’s look at their main advantages.

Eliminates the need for physical presence

Unlike other sectors, which have adapted much better to the new digital reality, the automotive industry in general—and dealers in particular—still require the customer to be physically present to close the sale. This is particularly needed when using financing to purchase a vehicle, as a number of documents need to be provided accrediting the customer’s solvency level, such as their payroll, income tax return or receipts of self-employed contributions, among others.

APIs make it possible to eliminate the need for the customer having to be physically present at the dealership, since the entire operation can be carried out online. This is an interesting concept not only for customers, but also for sellers, who can close a sale and the whole remote financing service, without having to go to the dealership in person, at a time when attending in person may have negative consequences caused by the pandemic we are living through.

Integrated into the dealer’s platform

APIs make the financing option available on the dealer’s own platform, whether it is a management system, an app or a website. These allow the customer to be able to choose the vehicle and, in the same purchase process, choose whether to make a cash payment or, alternatively, opt to finance it, in addition to receiving the response to the request almost instantly.

This allows you to create a new service that is fully integrated within your own brand. A new functionality that provides a new user experience and that favours  the customer journey.

APIs de financiación en concesionario

Facilitates the customer’s purchase decision

According to data collected by Xopie e-commerce experts, retailers achieve 40% more sales by integrating financing within their sales process. This is particularly relevant in a sector with as significant financing needs as the automotive industry, where more than half of car purchases are deferred.

This new functionality facilitates the purchase decision, especially if the financing is available at the same time that they have opted for a certain model of car.

Fully flexible and customizable financing

Consumers are increasingly looking for financial products that meet their needs and are as flexible and customizable as possible. They want to be able to choose the term, the amount and whether they want to pay it back early or not. And also have the opportunity to choose from several different offers.

APIs allow you to offer a very flexible and customizable type of financing. Customers can choose the type of financing that best suits their needs, in real time, and with a simulation of the fees that they will have to pay over the repayment period. And all this at such a key moment as making the purchase. It is an option that adds value to the vehicle purchase service itself, and that will serve to differentiate a dealer from its competition.

An engine for dealer sales

A better service, with a significantly lower cost and adaptable to each customer’s needs. The combination of these three factors allows dealers to boost their sales by offering financing services.

APIs provide all resources, specifications, and technology for this to be possible. The developments end up being cheaper, allow integration with the dealer’s own platform and, of course, speed up the make’s processes. And all this without any kind of friction with your current business.

How a credit API works for a car dealership

With an API such as BBVA’s Auto Loan you can integrate financing to buy a vehicle from your dealership or make, directly from your platform. Your customers will be able to instantly see the terms of the loan and also apply online.

The process is as follows:

  1. Start of the process: the customer searches for the car they want within the entire existing vehicle offer and chooses the one that interests them the most.
  2. Simulation: the process to profile the type of loan that interests the customer the most starts. The APIs display a repayment table with interest and monthly payments for information purposes.
  3. Confirmation: at the time the customer confirms the terms of the loan, the platform requests their personal and economic data to initiate the loan application.
  4. Validation and acceptance: the bank, in this case BBVA, validates the information with the credit authorities. If the request is accepted, the customer will receive a notification, usually via email, indicating that the operation is viable and granting the financing.

It is a simple process that can be fully integrated into the dealer’s platforms. For Eduardo Santiago Alcántara, Product Manager Channels Consumer Finance, the key purpose of BBVA’s Auto Loan is to help automotive businesses grow and thrive. “Giving them the ability to offer financing at the time of sale is the ultimate lever to achieve this goal”.

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