20 April 2019
Every year, a new term seems to come up, and the most recent one certainly seems to be "Blockchain”. Even if the name does appear to be very technical, the concept of blockchain is simple and easy to grasp.
Simply put, a blockchain is a time-stamped series of data records, stored in distributed networks. Each of these data blocks are secured and bound to each other using cryptography.
Blockchain allows for the sharing of data in a manner that’s more transparent and secure than conventional methods. In this article, we’ll point out the advantages that this new concept can bring to your auto dealership.
Using blockchain technology, a car dealer can immediately put a pre-owned vehicle back into the market with assured data certainty. This translates to a much shorter waiting period for the confirmation of the title transfer to arrive from the original owner when selling the car.
Additionally, rather than using several online forms for registration and other purposes, a solution based on blockchain would be able to simultaneously connect all related parties such as the buyer, seller, government bodies, and any third-party VIN and insurance databases involved in the sale.
Improving Value and Cutting Down on Fraud
Higher efficiency is another way auto dealers will gain from using blockchain. It has the potential to reduce or completely eliminate a lot of documentation and validation steps.
As pointed out earlier in this article, one of the fundamentals of blockchain is ensuring transparency of data. Therefore, adopting this technology into your auto dealership’s operations will automatically result in lowering the possibilities of fraud from occurring.
Boosting Customer Relations and Service Department Performance
VIN-specific data can be efficiently obtained by using blockchain tech. This will definitely be used more, as the era of connected cars is fast approaching.
VIN data can provide auto dealers with much more detailed owner purchase history and driving behavior details, which will in turn facilitate easier up-selling. Car valuations will see increased levels of accuracy as well, thereby making it easier to allocate trade-in values to used cars, settling on lease plans, and so on.
Making Ride-Sharing Easier
There are upcoming models of insurance based on customer needs that will deploy blockchain in order to cut costs. This makes a lot of sense as the average transaction prices hover near $35,000.
As most cars sit idle for several hours every day, they can be put to use under well-monitored conditions by means of blockchain-powered ride-sharing services.
For more information on Blockchain’s advantages over Auto Dealership, Contact Us.