Dealership technology is the future of the automotive industry, and that future promises an expansion in revenue. 

The automotive industry is forecasted to grow by 30 percent, or $1.5 trillion, with the help of data-driven and on-demand mobility services. High-tech electric vehicles will make up to 50 percent of new vehicle sales by 2030, while another 15 percent of cars sold could be fully autonomous. 

Automakers will continue to perfect their high-tech cars and invest in new dealership technology. As a finance and insurance (F&I) consultant, staying on top of the industry’s current tech trends can significantly increase your revenue.

Top Tech Trends in the Automotive Industry

Here are four of the top trends present in the automotive industry:

  • Process automation: According to McKinsey, 66% of organizations have taken action toward pursuing and setting up an automation program. In the automotive industry, that means we can expect to see more automated cars on the roads. Also known as self-driving cars, these vehicles contain features that allow them to pilot without human involvement. These vehicles contain different levels of driving automation. The lowest level of automation has humans performing almost all tasks, while the highest level of automation requires no human intervention, with the vehicle performing all the tasks.     
  • Virtualization: This is a trend that has emerged in part due to process automation and the increased autonomy of vehicles. Hardware virtualization allows vehicles to compartmentalize hardware. It also has the added benefit of reducing costs and increasing security.
  • Connectivity: Connected cars are on their way to becoming the new norm as the market for them is predicted to be an estimated $215 billion by 2027.  The cars are praised for being more environmentally-friendly and a potentially safer option than non-connected cars. These vehicles include features such as internet connectivity, security, entertainment, and vehicle-to-vehicle communication.
  • Artificial Intelligence Applications:  Artificial intelligence (AI) is in the early stages of development, but already AI applications have found their way into the automotive industry. For example, AI can be integrated into your department’s systems to speed up claims processing, assess customer risk, secure auto finances, and enhance customer experience.

Examples of Trending Techs Found in Today’s Automobiles 

Several of the above-mentioned trends have become integrated into today’s high-tech vehicles. Here are seven examples of common technologies you can find in a modern day vehicle:

1. Stolen Vehicle Technology

Motor vehicle theft rose nearly 12% from 2019 to 2020, with 810,400 vehicles reported stolen in 2020. Car theft is a top concern most car owners have. However, stolen vehicle technology can help in the recovery of these cars. Of the 800,000+ vehicles stolen in 2020, 56% of the vehicles were eventually recovered with the help of this technology. Systems that help to locate missing cars include OnStar, which helps alert drivers to its theft, alerts authorities, and then locates it through GPS technology. Sometimes, it can even slow down the stolen car or prevent a thief from starting it.

2. Wireless Smartphone Charging and Connectivity

Cars with this feature usually have a charging pad that drivers can rest their phones on. With wireless smartphone charging, consumers no longer have to worry about remembering their phone charger or having a dead phone battery while out driving.

3. Advanced Driver Assist Systems

A form of automation, this dealership technology will assist drivers by helping them avoid accidents, alert them when a car or other object is in their blind spot, help keep their car in the right lane, and much more. These features can either standalone or come in a package.

A few key features found in advanced drive assist systems include: 

  • Adaptive cruise control
  • Lane departure warning
  • Lane-keep assist
  • Blind-spot alert
  • Cross-traffic alert
  • Reverse brake assist

4. Exit Warning Systems

This system is designed to keep drivers or passengers from inadvertently opening a door when a bicycle or car is passing. It works through rear-view sensors that stay on for several minutes after the car has been parked. If the system does sense something, it will warn the driver through a series of bright lights or even lock the door to prevent an accident.

5. 360-Degree Camera

This feature gives drivers a 360-degree view, which can help when backing out of a parking space or driveway. It helps drivers avoid collisions by creating a top-down view of their surroundings through a combination of cameras on every side of their vehicle  and smart dealership technology. This camera is also great for avoiding scratches and dents when parallel parking or parking large vehicles.

6. Video Rearview Mirror

Video rear-view mirror features use a rear-mounted camera to allow drivers to see behind them even when the rear window being obstructed. 

7. Connected Mobile Apps

You can now connect your phone to your car. Advanced carmakers facilitate connectivity by allowing drivers to lock and unlock their car doors, check their car’s tire pressure or fuel level, or even start the car, and this is all done through an app on your phone.

The Advantages of Tech in Driving Growth in F&I

Consumers are purchasing high-tech cars that require comprehensive coverage for. Dealership technology offers an additional means for your department can increase sales revenue.

Here are four ways that technology can boost growth:

  • New sales opportunities: Technology has given way to new trends, which have become integrated into new vehicles. Consumers are eager to protect their assets, which opens up more sales opportunities for you as an F&I consultant. Auto service contracts are one way for you to capitalize off these high-tech vehicles. These contracts help protect a consumer’s assets once the original auto service contract expires. Add-ons such as key replacement, GAP, and interior and exterior protect plans can further protect your customer’s new asset. 
  • Efficiency: Integrated technology has helped increase efficiency in the F&I department by reducing time and the number of errors inputted. This has also led to greater customer satisfaction as they spend less time at the car dealership. These more efficient systems help to speed up your workflow so you are selling more contracts and driving higher profits.
  • Data visualization: The F&I department can use data visualization to analyze and understand the wants and needs of their customers. This is done through graphs and charts, which help to identify trends, strengths and weaknesses, and opportunities for greater sales.
  • Improves customer service: Great customer service can boost customer loyalty and turn them into repeat auto customers. Techs such as artificial intelligence, integrated technology, and connectivity can help you provide customers with a smooth and enjoyable experience by decreasing wait time. drive more sales and your customers leave happy and satisfied. 

Learn More About How Tech Can Help You Drive Your F&I Profits

Technology is a game-changer that can help F&I firms optimize their resources and increase their revenue when utilized effectively. It allows for new trends, new solutions, and new opportunities.

At The ACE Group, we can further help you maximize your profits and income by giving you the tools you need to succeed. Contact us today if you would like to learn more about how we can help you boost profitability and increase customer satisfaction and retention.