Benefits of Outsourcing Title Work

Benefits of Outsourcing Title Work

If your dealership is struggling with turnover or having difficulty establishing an efficient tag and title process, one option is to outsource this task to a third party.

Staff turnover at dealerships is a pervasive issue that’s often talked about, but most of the focus is on salespeople and technicians. While this is a significant concern, other employees are responsible for internal processes that are equally complex and vital to dealership operations.

One such process is the time-consuming vehicle registration and ownership transfer process. This crucial aspect of the sales process requires speed, accuracy and expert knowledge. Disruptions or turnover in the tag and title process can result in increased costs and liability issues.

As most dealers know, finding an experienced title clerk is becoming increasingly difficult. The role is considered tedious and low paying by many of today’s job candidates’ standards. Training an inexperienced title clerk takes time, patience and resources. Have you ever downloaded the title clerk’s training manual from your state DMV? These manuals can be hundreds of pages long.

If your dealership is struggling with turnover or having difficulty establishing an efficient tag and title process, one option is to outsource this task to a third party. Many dealers don’t realize this option exists, but outsourcing can bring tangible benefits.

Cost Savings

One significant advantage of outsourcing title work is cost reduction. Hiring and retaining in-house title clerks can be costly with salaries, benefits and the time and effort spent searching for, training and onboarding new staff. By outsourcing, dealers can also eliminate the need for associated overhead costs, such as office space and equipment.

Additional savings come into play when you consider how dealers get hit with occasional late fees due to transactions not being completed on time. In some states, dealers can pass fees related to outsourcing title work onto the customer, potentially turning it into a profit center.

Time Efficiency

Outsourcing title work can significantly streamline and improve the tag and title process, resulting in faster turnaround times. Daily document pick-up ensures efficiency and same-day title registration prevents delays and voided transactions.

Deals held up in the finance department can be resolved promptly by experienced title clerks. Outsourcing title work also provides an ideal solution when staff goes on vacation or turnover occurs.

Outsourcing allows car dealerships to streamline operations and their employees to focus on what they do best — sales and customer service.

Alleviate Administration Burden

Outsourcing will not completely eliminate the need for someone internal; a dealership employee must manage the vendor and handle all wholesales, dealer trades and out-of-state deals. However, outsourced title clerks can efficiently handle all your in-state deals, significantly reducing the administrative burden for your current staff. 

Outsourced title clerks take care of many services, like filling out the tag and title work, scanning or mailing DMV documents, handling rejections and finalizing deals with the state.

Reduce Liability

Title work can be a complex and meticulous process. And staying up-to-date with frequently changing regulations that vary from state to state is daunting. Paperwork rejection is always a possibility.

Outsourcing to providers specializing in navigating the intricacies of tag and title work reduces the risk of costly errors, delays and potential legal issues — providing peace of mind to car dealerships. In today’s competitive automotive market, efficiency must be a priority. The benefits of partnering with a vendor for your dealership’s title work include cost savings, reduced compliance issues and administrative tasks, and improved turnaround times and cash flow. Embracing this option can result in a more efficient and cost-effective tag and title process.

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