LAKE SUCCESS, N.Y., Feb. 2 /PRNewswire-FirstCall/ -- DealerTrack, Inc., a subsidiary of DealerTrack Holdings, Inc. , today announced that three of the nation's premier auto retailing groups -- Sonic Automotive , privately-held V.T. Inc. and the Suburban Collection -- are implementing the DealerTrack eContracting(TM) solution across their U.S. dealership networks.
Alan Lehmann, DealerTrack's Vice President of Finance Solutions, said, "We are very pleased to announce that these three premier dealer groups are implementing our eContracting solution. Since the product's launch in 2002, over 210,000 eContracts have been funded, and 20 financing sources are now participating on our platform. eContracting is clearly building momentum in the marketplace as some of the industry's biggest players begin moving aggressively to capture the benefits of improved cash flow through faster funding, reduced document shipping costs, improved compliance and increased customer satisfaction."
David Plummer, Senior Vice President, Corporate Controller for Sonic Automotive, said, "First and foremost, we are always interested in improving cash flow. DealerTrack's eContracting is helping us fund deals as quickly as the day of delivery to the customer. There are also significant benefits for our customers -- with eContracting, we can move them through the contracting process easier and faster, and they really love that. We also see benefits from the standpoint of Gramm Leach Bliley Act compliance."
Greg Oltman, Director of Finance for V.T. Inc., which provides consulting services to the Van Tuyl auto dealerships, said, "Several of our first stores to adopt eContracting have had great success, so we've begun a national roll- out. One store reduced their contract compliance issues by about 30%, and had no returned contracts at all in a recent month -- compared with their 9% return rate for paper contracts. As we implement DealerTrack's eContracting solution nationwide, the message to our lenders is clear -- if you want more deals, get on eContracting, because that's where our business is heading."
Gary Allgeier, Director of Finance for Suburban Collection, said, "We and our eContracting finance partners have been enjoying the benefits of eContracting now for about 2 years. When we talk with new financing sources about becoming a Preferred Lender, eContracting is now a key differentiator. If a lender is on eContracting, it tells us that they are aligning their strategies and priorities with ours; that is a meaningful indication that they are a progressive lender. When the results are so positive -- increased cash flow, reduced contracts in transit, and better CSI due to reduced errors -- why wouldn't a lender or dealer want those benefits?"
DealerTrack's eContracting solution, which is integrated with the DealerTrack online credit application network, enables dealers to pre- populate, complete and submit retail installment sales contracts electronically to financing sources. In the traditional paper-intensive process, overnight mailing, cross-checking, re-contracting (if necessary), and finally funding a retail contract can take a week or more. The use of eContracting results in faster, more accurate completion of contracts and funding for the dealer as soon as the same day.
About DealerTrack (http://www.dealertrack.com/)
DealerTrack is a leading provider of on-demand software and data solutions for the U.S. automotive retail industry. The company's online credit application processing product automates and accelerates the automotive financing process, while its integrated subscription-based software enables dealers to receive consumer leads, compare financing and leasing options, sell insurance and other aftermarket products, document compliance, and execute financing contracts electronically. Over 22,000 dealers, with more than 85% of all franchised dealers; over 300 financing sources, including nine captives and the 20 largest U.S. independents; and other service and information providers are active in the DealerTrack network.
Safe Harbor for Forward-Looking and Cautionary Statements
Statements in this press release regarding DealerTrack, the implementation and benefits of the DealerTrack eContracting solution, the number of active dealers and connected financing sources participating in eContracting, and all other statements in this release other than the recitation of historical facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of DealerTrack to be materially different from any future results, performance or achievements expressed or implied by these forward- looking statements.
Factors that might cause such a difference include: increased competitive pressure from other industry participants, the inability to execute any element of DealerTrack's business strategy, including the retention of eContracting dealers and financing source customers; selling additional products and services to existing and new customers; success in expanding our customer base and product and service offerings and integrating acquisitions; and other risks listed in our reports filed with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2005. These filings can be found at http://www.dealertrack.com/ and the SEC's website at http://www.sec.gov/. Forward- looking statements included herein speak only as of the date hereof and we disclaim any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.
Greg Slote
DealerTrack
(516) 734-3921
greg.slote@dealertrack.com
Tom Pratt
RF|Binder Partners
(212) 994-7563
tom.pratt@rfbinder.com
