Hardware as traditional car manufacturers’ superpower 

In the ever-evolving European automotive arena, the spotlight is increasingly on disruptive newcomers, the struggles to move to new technologies and changing customer needs. The industry is confronted with new strategies and technological innovations. Amid this fierce competition, traditional car manufacturers are often portrayed as struggling to keep pace. But let’s hit the brakes on that narrative. While it’s true that traditional car manufacturers face several challenges, it’s crucial to remember where their true strengths lie.  

Despite the noise of new entrants and shifting technologies, traditional car brands continue to lead in several areas: Manufacturing exceptional vehicles. Operating extensive global distribution networks. Maintaining massive numbers of cars on the roads. For many decades they have gathered expertise in designing, producing, and ensuring quality while enabling mobility for their customers. They are masters of hardware.  

Where the true gap emerges 

In today’s hyper-connected world, consumers are accustomed to digital experiences that are fast, seamless, and omnichannel. When it comes to buying a car, they expect nothing less. The data is clear: Most buyers are eager to purchase vehicles online, with 90% beginning their car shopping journey on the web. This shift demands that traditional car brands move beyond rigid traditional sales models and adopt a more flexible hybrid approach, blending dealership sales with multi-level direct-to-consumer channels.  

To meet these demands, traditional manufacturers have invested heavily in in-house digital units to accommodate these new sales models and enhance their customer experience. But here is the challenge – integrating these digital innovations with existing hardware cultures while managing multiple sales channels at the same time results considerable complexities. Many brands are struggling with disjointed digital initiatives, resulting in inefficient operations. The outcome? A tangled web of backend systems, each interacting separately with digital transactions.  

On the customer-facing side, this leads to a frustrating ping-pong between different touch points, sometimes each offering conflicting information. This not only erodes an efficient and appealing customer experience but also weakens the competitive edge traditional car brands once held.  

In line with this, some of the most critical steps in the buying process, like (leasing) contract generation and payment processing, are still being handled with outdated, manual methods with pen and paper. In a world that’s rapidly going digital, this analog approach is holding many traditional car brands back, leaving them struggling to keep pace with industry advancements.  

Digital natives to bridging this gap 

This is where digital natives such as LeaseTeq make a difference to the ecosystem.  

We bring a unique combination of expertise in both automotive sales challenges and technological expertise. With us, pen and paper are no longer required for contract generation and payment processing. LeaseTeq streamlines the entire leasing process, leading to greater customer satisfaction and efficiency for traditional car brands and dealers.  

Our platform solutions offer easy plug-and-play integration via API, connecting seamlessly across various touchpoints. As technology partner, we adapt quickly and flexibly, navigating around the industry’s larger tankers like a speedboat.  

LeaseTeq is dedicated to helping car brands bridge the digital divide.  

By working with us, car brands can stay focused on what they do best — building outstanding cars — while we handle the complexities of digital transformation in auto finance. 

Let’s close the digital gap together and keep the joy of buying and driving cars. 🚗💡