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Digital Signatures for Automotive Digital Documents: Transformation in Top Gear4 min read

digital signature for automotive industry

The automotive industry – one of the largest sectors of the world economy – has seen a 360-degree metamorphosis in the last few years. The pandemic set the industry on the road to digital transformation, changing how cars are bought and sold. Digital signature for the automotive industry is in the driving seat– transforming user experiences and vehicle sales and ensuring fraud mitigation. 

This shift towards digitization would probably have taken a decade to happen. The pandemic fast-forwarded the change. For instance, in 2020, online car sales jumped from 2% to 30% of all vehicle sales in the US. 

As more and more dealers began prioritizing online car purchases to keep up with changing customer choices, the industry began embracing technology-driven transformation in a big way. A survey found that in 2022, 87% of US-based dealers identified digitization as a primary driving force of their business model. This was twice as high as the numbers in 2021. 

Even as dealers adopted digital tools that drove better shopping experiences, they began investing in back-end solutions – like digital signatures and paperless documenting solutions – that shortened the purchase cycle, helped counter online fraud, and focused on keeping their business deals secure. 

In this blog, we will look at how digital signatures have been a game-changer for the global automotive industry. How has digital signature transformed the way automobiles are sold? 

digital signature for automotive industry

Let’s look at how the Digital Signature for Automotive Industry is on the road to turning paperless with e-signatures

1. Do away with the mountains of paperwork

Several verticals of the automobile industry – be it manufacturing, supply chain management, agreements, sales or service – are witnessing rapid transformation with e-signature solutions. Vehicle quotations, purchase orders, vehicle service requests, NDAs, contracts with distributors, insurance documents, quality check documents, warranty checks, handover documents and repair and maintenance requests are some of the paperwork that automobile dealers are doing away with by onboarding digital signature solutions. 

2. Automate contract signing with dealers 

Manufacturers must sign annual dealer contracts since most global automobile sales are through dealer networks. This can be a long-drawn process with mounds of paperwork. Research reveals that the contracting process generates more than 200,000 yearly documents for a regular automobile manufacturer. That is huge! With the introduction of smart document solutions, dealer management systems, and digital signatures, vehicle manufacturers can automate the entire process – including contracting and invoicing – and remove paperwork from their dealer relations. Contract templates that can be filled online and signed digitally reduce processing times using compliant electronic signatures. 

Seamless shopping experiences

E-signatures provide the seamless shopping experiences that modern customers expect. Modern buyers seek convenience when making any purchase. Automobile customers are no exception. Vehicle dealers are now rolling out conveniences like digital showrooms, at-home test driving, home delivery of cars, and digitizing vehicle purchase documents. Digital signatures have enabled car buyers to have smooth document signing experiences, as they don’t have to spend unnecessary time signing stacks of documents. Digital signatures also enable customers to go through the document signing process remotely. It helps update KYCs and sign insurance documents online as well. This assures automobile dealers that there are no fault lines in the security and integrity of a document. 

Different e-signature solutions for different needs

Different forms of smart signature solutions meet specific domain requirements. For instance, an electronic signature allows manufacturers or dealers to send documents for signing to any number of people. There are digital signatures where the KYC of the signer is pre-validated. For electronic correspondence between manufacturers and dealers, there is a hybrid signature solution that allows manufacturers to sign documents internally while the distributors can sign using an e-signature. End result? Seamless workflows. 

Fast, easy, convenient car buying experience

A CDK Global Automotive Retail Friction Point report found that 41% of consumers complain that waiting at a dealership is the most significant negative point while purchasing a vehicle. This could be waiting for a salesperson, finance and insurance manager, or someone to assist. One-third of customers wanted a fast, easy, and convenient car-buying experience. Digital signatures are emerging to answer this customer pain point, as they reduce paperwork and, therefore, waiting time. 

Transparency in supply chains 

Digital signatures and paperless documentation is a game-changer for the automotive sector’s supply chain and logistics functions. The tracking and monitoring systems that control the movements of goods and vehicles require intensive paperwork.

This can be made smoother and seamless with digital documentation solutions and e-signatures, as they automate processes and bring transparency to the supply chain function. 

Mitigate fraud

Digital signatures help automobile dealerships safeguard against identity fraud. It allows manufacturers and dealers to confirm the signer’s identity and provides them with the tools to ensure that contracts stay tamper-proof. 

Download Whitepaper: Understand Digital Signatures Value and Impact 

Sum Up: E-signatures have put smooth customer experiences on the driver’s seat

Digital signatures and paperless documentation systems have improved operational efficiency and regulatory compliance for the automotive sector in a significant way. It has also resulted in effective time management, better coordination and fewer errors, putting seamless customer purchase experiences in the driver’s seat. 

For more information on how to get started with digital signatures and Certinal, book a demo with us. 

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Author
Senior Executive - Marketing
Aritra is an experienced marketing professional with over five years of expertise in various industries. He specializes in brand management, campaign design, demand generation, marketing process optimization, and PR. Aritra holds a master’s degree from Bennett University, and he has actively contributed to several student initiatives during his time there.
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