What hasn’t the internet changed? It has had profound effects on how we shop, go to work, and even though some people thought it would never happen, how we buy our cars and trucks.
eCommerce is a quarter century old, and started with us buying simple things, like books, music, booking travel, and maybe, if someone were really brave, buying pants or a shirt online. Now, more than two decades into the digital economy, and because of the pandemic, we buy everything online.
But online auto sales lagged, still requiring a visit to the dealership to complete the transaction. Perhaps people thought that since the transactions were so complex, they couldn’t be done online. Many people still believe that. But the truth is, online vehicle sales are exploding for several reasons.
First, technology from several innovative companies allows buyers to take care of most parts of the car buying experience online. Second, the pandemic has caused many to do all their business online, away from other people, including car buying. Third, we are in what experts are calling “The Great Resignation” and record numbers of people are leaving their jobs; many moving out of state or “back home” and are looking for new vehicles in their new state, or old state, with the intention of taking them along.
Add to this a challenging economy which has led many dealerships to cut their back-office staff, and it is a perfect storm of conditions for the explosion of online car sales, and chances are, the auto industry is never going back to the way things were.
Let’s go back to eCommerce for a second. It is probably the biggest reason for the spike in online vehicle sales because buying shoes, groceries, insurance, plane tickets, and furniture online has trained consumers that the product comes to you, you don’t go to the product. Online buyers do their vehicle research online and narrow their choices by visiting a dealership for a test drive. When they get close to buying, they want to see available discounts and rebates online, get an accurate price quote, receive an offer on their trade-in (if any), get financed and insured, sign the documents, and then have the vehicle delivered to them.
Many dealerships struggle with helping online buyers through these steps, which poses a problem for “traditional dealers” because they are vulnerable to new players in the market that can provide these things online.
Seamless and easy experiences are what online vehicle buyers want and technology has made this possible. Having a technology platform that includes credit applications, financing, insurance, and tax, title, and license to speed the purchase process is crucial.
ATC is part of this new digital automotive economy and provides dealers, lenders, and auto technologies accurate tax, title, and license data for online sales, and in-state and out-of-state vehicle titling and registration.
We work with every DMV, in every jurisdiction in the country, to make it easier for you to sell cars. To learn more, reach out to Blaine@autotitling.com.
Automotive Title Company (ATC) works with the DMV every day and we think it gets a bad rap. Sure, it can be frustrating working through the red tape and bureaucracy, but the reason the DMV was conceived was to keep us all safe. With that in mind, we thought that a history of the DMV could help create more appreciation for it.
When cars began to appear on American roads in the early 20th century, there were no real requirements for owners to acquire a license, or drive safely, in many parts of the country. For example, in some states, motorists only had to say they had read their state’s traffic laws and knew how to operate the car. Absolutely no proof was necessary!
Of course, tragedies happened because people who never really bothered to learn how to operate a car or navigate roads filled with other cars, horses, carriages, bicycles, and curious onlookers, ended up causing numerous injuries and deaths.
At the time, automobiles were extremely expensive and unaffordable for most of the population, so car owners were wealthy and believed that the rules didn’t apply to them. Newspapers began writing sensational articles about “death on wheels” and “automobile scorchers” and portrayed cars, and the people that drove them, as killing machines.
There was a growing need to establish rules and regulations to regulate how cars interacted with other participants in traffic and on the streets and roads to ensure the safety of pedestrians and cyclists. The earliest rules were impractical, such as rules to only drive in daylight, or carry a red flag in front of a car to warn others that it was approaching. As the number of motor vehicles grew, new sets of laws were enacted requiring owners to obtain license plates for their vehicles and a driver’s license for themselves. That was the beginning of the process to register vehicles and license drivers.
The DMV was born.
The idea for the DMV was to provide the public with the highest level of motor vehicle safety and collect revenue to be used for transportation related matters. An additional function of the DMV was, and still is, to maintain motor vehicle related records. Today, these procedures are handled by state government agencies, collectively known as the Department of Motor Vehicles (DMV).
Over time, the DMV has increased its range of activities and responsibilities. It is still responsible for regulating traffic safety, driver training, testing, and licensing, and motor vehicle registration. In the 1960s, smog control devices were mandatory for first-time registrations, and in the 1970s, DMVs began issuing personalized license plates.
With the emergence of the Internet, the DMV has started offering online services such as handling traffic citations, insurance transactions, driver’s license violation point record-keeping, license status checks, etc.
Auto Titling Company (ATC) exists to provide accurate tax, title, and registration fee information to make the car buying experience easier for shoppers and more profitable for dealers, lenders, and auto technology companies. We work with every DMV, in every jurisdiction in the country, to make it easier for you to sell cars. To learn more, reach out to [email protected].
Auto Titling Company (ATC) exists to provide accurate tax, title, and registration fee information to make the car buying experience easier for shoppers and more profitable for dealers, lenders, and auto technology companies. The story we have told for years has always centered on how accurate TT&L data can improve the buying experience and having bad data can cost you sales and time. In this case study, we tell a client’s saga of sales lost, time wasted, and show exactly what bad data can cost: millions!
First, the backstory. The company will remain nameless, but we feel this case study provides a lot of value about overcoming the obstacles on the way to a positive business outcome.
Company X is a dealer management system (DMS) provider for thousands of automotive dealers nationwide that uses a TT&L database accumulated from data used by dealers in their local transactions. In 2020, the company’s online sales were booming because of the pandemic. This seismic shift in their business meant that for the first time, most of their potential buyers fell outside of their dealers’ local jurisdiction, where tax rates and registration fees are calculated entirely differently.
This led to a surge in misquoted tax and fee calculations during the closing process – a whopping 45% of all deals used inaccurate TT&L data!
In the previous year, the direct costs of miscalculating taxes and fees to register a vehicle on the Company X DMS platform led to more than $2 million dollars’ worth of customer refunds and costs that the dealers had to absorb. Indirect costs included paying four software developers who spent 20 hours a week researching local tax jurisdiction laws and fees and maintaining its database – ~$350,000 in labor.
The happy ending to this sad tale of inaccurate data and its impact on Company X’s business is that ATC was able to help provide accurate TT&L calculations through an API integrated directly into their DMS platform – saving Company X millions of dollars annually and refocusing their software development team on more strategic projects and initiatives. By increasing the accuracy of their TT&L data, we helped them reach their goal of four consecutive profitable quarters in 2020/2021.
If your company finds itself in a similar situation – needing accurate tax, title, and license data to grow business and expand sales, ATC can help. We work with dealers, lenders, and auto technologies to increase car sales and remove friction from the car buying experience. Contact us to learn more.
Buying a car can be a frustrating experience. The process is complex, time-consuming, and for many people, filled with fees they don’t understand. Since ATC exists to provide accurate tax, title, and registration fee information to make the car buying experience easier, we thought we’d cover all the fees that are part of most car buying transactions.
Finance Charges
Since most people don’t pay for their car in cash, they must secure a loan. A buyer’s credit score, the loan’s term, type of car, and down payment all help determine the rate the buyer pays to finance their vehicle.
Destination Fee
This is the cost the dealership must pay to have the car delivered from the factory to their showroom. This is a fee that cannot be negotiated.
Transportation Fee
If a buyer wants a model not available at the time of purchase, and the dealership must transport it from another location, a transportation fee will be charged.
Documentation Fee
The document fee is sometimes called a processing fee, handling fee, or conveyance fee, and covers the cost of preparing all the paperwork required for selling a car. Some states have a cap on document fees or require that the dealership charge every customer the same fee.
Preparation Fee
The prep fee is the cost of getting your car ready and may include washing the car, removing the plastic covering from the interior and exterior, and filling up the gas tank.
VIN Etching
A dealership can etch the vehicle identification number, or VIN, on the windshield to deter car theft.
Credit Insurance
Credit insurance can help cover the remainder of a car loan after an accident, and some policies might also help if the buyer becomes disabled, loses their job, or dies.
Gap Insurance
Gap (guaranteed asset protection) insurance may be required if leasing a vehicle. It covers the difference between the loan and the value of your vehicle if it’s totaled or stolen.
And we might be a bit biased, but the most important fees when buying a new vehicle:
Title and Registration Fees
Dealerships handle the process of registering the vehicle with the buyer’s motor vehicle agency, assigning the car’s title and ordering the license plate. The dealer collects this fee and submits it to the state motor vehicle agency. (Made really easy if they work with ATC!)
Sales Tax
Most states have a sales tax on vehicles, and it must be paid when you buy a new vehicle. The sales tax varies based on the state in which the buyer would like to register the vehicle and if buying a car in a different state, the dealership may be able to register the car in that state and submit the sales tax to that state’s motor vehicle agency. (Made really easy if they work with ATC!)
ATC provides dealers, lenders, and auto technologies accurate tax, title, and registration data for in-state and out-of-state vehicle titling and registration. Contact us for more information about how our technology helps increase car sales and remove friction from the car buying experience.
The automotive industry has always been a hotbed of technological innovation so ATC has put together our list of the most important automotive technology advances to show just how far we’ve come in the last 100+ years.
1911 – Electric Ignition
Before electric ignition, manual hand cranks started cars, but they were dangerous because the engine could jump as the car started, injuring the driver. The first electric starter appeared in a Cadillac in 1912.
1921 – Cigarette Lighters
Cigarette lighters were standard by around 1925, and although they aren’t common today, we still use the socket to power our in-car electronics.
1930 – Car Radio
The first car radios were AM, and 22 years later the first FM radio was available.
1949 – Car Keys
Chrysler invented the car key to start the electric starter and ignition. Soon, every manufacturer offered keys.
1951 – Power Steering
Power steering uses hydraulic power to make steering much easier, and first appeared on a Chrysler in 1951, and a Cadillac a year later.
1953 – Air Conditioning
The Chrysler Imperial was the first car to offer air conditioning as an option, making summer driving more bearable.
1958 – Cruise Control
Once again, Chrysler led the way with cruise control in 1958, and was soon a standard feature in Cadillacs a few years later.
1959 – Seatbelts
The modern seatbelt was invented by Volvo, who decided to give away the patent to other carmakers for free, knowing it would save lives.
1971 – ABS Technology
An Anti-Lock Braking System stops wheels from locking up during hard braking. It was first used on trains before Chrysler adapted it for the car.
1973 – Catalytic Converter
This technology reduces toxic emissions created by the engine.
1988 – Airbags
Chrysler introduced the first production airbag, which was initially only available for the driver.
1994 – On-board Diagnostics
OBD allows mechanics to access information about the car in order to make repairs. OBD became mandatory in 1996.
1996 – Electric Vehicle
The GM EV1 was the first mass-produced electric vehicle and even though GM promised 70-90 miles on a charge, it was actually closer to 50-60 miles.
1998 – Smart Key
Mercedes-Benz was the first to offer the Smart Key, which allowed the car to be started using a push button as long as the key was inside the vehicle.
2000 – GPS Navigation
In 2000, President Bill Clinton ordered the military to stop scrambling GPS signals which made the technology available for use in auto navigation systems.
2000 – Hybrid cars
Adding an electric motor to a gas engine was first conceived in the 19th century but Toyota brought it to the world market in 2000.
2001 – Bluetooth
The first hands-free bluetooth appeared in 2001 and today bluetooth is integrated with every car’s infotainment system.
2002 – Backup Camera
The first backup camera was used in the 1956 Buick Centurion concept car, which was never produced, so the 2002 Infiniti Q45 was the first production car to offer it.
Some items on this list seem so basic today that calling them “technology advances” seems strange, but to anyone that remembers craning their neck to see what was behind them as they backed up, or wrestling with the steering wheel before power steering was a thing, they are miracles of technology!
What does the future hold for automotive technology? Autonomous vehicles get the lion’s share of attention, but what else is coming to our cars?
?? – Gesture Controls
Automakers are working on displays that respond to gesture control.
?? – Biometric access
The smart key is so 2010! Someday soon you’ll unlock and start your car with your fingerprint.
?? – Windshield Displays
One day everything your dash shows you will be displayed in your smart glass windshield.
?? – Energy-storing Body Panels
The battery required for an electric vehicle takes up a lot of space (and weight) so automakers are developing energy-storing body panels that take the place of the battery.
ATC is also in the automotive technology business – we provide dealers, lenders, and auto technologies accurate tax, title, and license data for in-state and out-of-state vehicle titling and registration. No matter what technology makes its way to our cars in the future, we know that each car will still have to be registered and licensed. Contact us for more information about how our technology helps increase car sales and remove friction from the car buying experience.
The only constant in life is change.
Cliché? Maybe. True? Absolutely, especially in the automotive industry the last decade or so.
In general, car buyers become familiar with new models through commercials, ads, or word of mouth. When they are in the market for a new car, they do research before heading to the dealership to test drive and purchase. How has technology impacted the car buying journey? Here are four ways technology has forever changed the car buying experience.
Research
It should be no surprise that car buyers begin their purchase journey by researching online. What is interesting is that car buyers no longer primarily rely on OEMs and dealerships for their research; most of them, 56%, begin at third-party sites, and not at the brand or dealer sites. (AutoTrader)
These car researchers don’t limit themselves to just one site to find information. In fact, car researchers visited an average of 4.3 websites in their purchase process, including third-party sites, which 80% of researchers visited, OEM sites (27%), and dealership sites (40%). The most-visited third-party sites include Kelley Blue Book, AutoTrader, Cars.com, Carfax, and Edmunds. (Cox Automotive)
Mobile
Smartphones and tablets are an integral part of the car buying journey.
To show just how important mobile devices are to a car buyer, consider these statistics:
- 60% of all automotive searches come from a mobile device and some of the top mobile searches are related to dealerships (Google)
- 48% of new car buyers use their smartphone for information gathering while at the dealership (JD Power)
- 69% of car buyers say it is important to have their smartphone with them while shopping for a car (AdColony)
Virtual Shopping
COVID accelerated the move from visiting a showroom, to virtual showroom visits at dealerships, but that change was happening even before COVID started.
- 86% of car buyers said they shopped online to save time at the dealership (Kelley Blue Book)
- 34% of new vehicle buyers visit only one dealership (Cox Automotive)
- With online video, shoppers can experience parts of the car buying journey that could previously only be done on the lot, such as vehicle walkarounds, feature demos, and video “test drives” (Google)
- The watch time of test drive videos on YouTube has grown by more than 65% in the past 2 years (Google)
With technology, most of the new car buying journey can take place virtually with showroom “visits,” demonstrations, and videos, all from the shopper’s mobile device, or from their own home.
Friction
Online shopping has made consumers much less patient, and one major purchase that has always been complex, time-consuming, and full of friction, is buying a car. But seamless and easy experiences are what the new car buyer requires. Technology has made this (close to becoming) a reality.
Having a technology platform that includes credit applications, financing, insurance, and tax, title, and license to speed the purchase process and keep it frictionless is crucial.
Consider this:
- 18% of car buyers would purchase sooner if they could do so without going to a dealership (Google)
- By 2025, over 25% of global car sales will be conducted online (ZDNet)
- 22% of car buyers have bought a car online and had it delivered by Carvana or Vroom, and 37% said they would be interested in this option (AdColony)
The bottom line is that a smooth, frictionless car buying experience is a requirement for the modern economy, and technology is helping to make that happen.
ATC provides dealers, lenders, and auto technologies accurate tax, title, and license data for in-state and out-of-state vehicle titling and registration. Contact us for more information about how our technology helps to increase car sales and remove friction from the car buying experience.
Out-of-State TT&L Fees: How Dealerships Can Avoid Costly Surprises
For automotive dealerships, managing tax, title, and license (TT&L) fees across multiple states is more than a paperwork hassle, it’s a critical challenge that can delay deals, frustrate customers, and hurt profitability. Discrepancies in TT&L costs by jurisdiction make out-of-state vehicle sales especially complex. Without accurate fee data and a reliable title processing solution, dealerships risk transaction delays and customer dissatisfaction.
That’s where ATC steps in. As experts in dealership title and registration services, we understand how difficult it can be to navigate a patchwork of DMV rules and fees across the U.S.
Why TT&L Fees Matter for Dealerships
TT&L fees aren’t just a line item, they directly affect your deal structure, customer transparency, and back-office efficiency. Take, for example, a 2021 pickup truck priced at $50,000 and sold with a $200 documentation fee. Depending on where the buyer registers the vehicle, TT&L fees can vary by over $600.
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Brookfield, WI: 5% state tax, $100 registration (based on gross vehicle weight), $164.50 title fee, $10 lien fee
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Fort Lauderdale, FL: 6% state tax, $50 county flat fee, $301.60 registration, $77.25 title fee
Even though the vehicle is the same, the total TT&L cost in Fort Lauderdale exceeds Brookfield’s by more than $600. Now imagine managing these differences across dozens of states and thousands of transactions. It’s easy to see how manual research or outdated data can quickly lead to costly mistakes.
4 Ways Dealerships Can Streamline TT&L Fee Management
1. Use a Trusted Title Automation Platform
ATC gives dealerships real-time access to the most accurate TT&L fee data available across all 50 states. By integrating with every DMV jurisdiction, we eliminate the guesswork from title and registration compliance. Whether you’re processing an in-state or out-of-state sale, you get precise tax rates, registration fees, and documentation requirements, within seconds.
2. Eliminate Bottlenecks with Electronic Title Processing
Manual TT&L processes slow everything down. Our digital title and registration solutions for dealerships replace outdated, paper-based workflows with seamless, automated systems. This minimizes title delays and improves your back-office efficiency, allowing your team to spend less time chasing forms and more time selling cars.
3. Keep Your Sales Team TT&L Savvy
Even with the best tools, your staff needs to be confident in explaining TT&L fees. ATC provides ongoing support and resources to help dealership employees stay up to date with evolving state regulations. Educated staff build trust with buyers and reduce costly errors.
4. Prioritize Transparent Customer Communication
Nobody likes hidden fees. By using ATC to accurately calculate and display TT&L fees, you provide buyers with a clear, detailed breakdown during the sale. This builds transparency and improves the customer experience, especially when buyers are moving between states or purchasing online.
Don’t Let TT&L Inaccuracies Derail Your Dealership
Inaccurate or outdated TT&L data doesn’t just inconvenience your staff, it creates friction that can drive buyers away. ATC empowers dealerships to process titles, calculate fees, and stay compliant with state and local DMV rules. Our platform is built for speed, accuracy, and scalability, so your dealership can handle out-of-state title transfers and local registrations with confidence.
Let’s make TT&L the easiest part of the sale, not the most frustrating.
Ready to simplify your dealership’s title and registration process?
Contact ATC today to learn how our solutions can help you eliminate errors, boost efficiency, and close deals faster.
Automotive Titling Company has been named to the “Emerging 8” list, an award program designed to honor companies that aim to improve a specific aspect of the vehicle-buying process through innovative use of technology.
“We are extremely honored to be named to the ‘Emerging 8’ list,” said Ken Alley, Chief Executive Officer of ATC. “It’s always nice to be recognized for the work you do, but it’s also an affirmation that the products we have brought to market, and the services we offer, are making an impact in the automotive industry. We set out to make the car buying experience better by providing the best out-of-state tax, title and registration (TTR) software, data and services, and it’s nice to see that others agree.”
The “Emerging 8” award program is presented by Cherokee Media Group, publisher of Auto Remarketing and Auto Fin Journal, and honorees are selected by the Cherokee Media Group staff, leveraging guidance from the Auto Intel Council and other industry leaders.
“We’re in good company,” Alley said, referring to the other 7 companies on the “Emerging 8” list. “The list covers all aspects of fintech development, from vehicle marketing and retail, to data privacy. The entire automotive wholesale and retail process has been changed and we’re all trying to make the process even better for vehicle buyers.”
Thousands of dealerships across the country rely on ATC to process their out-of-state vehicle transactions and the company recently introduced an API that integrates with online automotive applications. The proprietary ATC database contains 19 million unique TTR combinations covering all of the 11,000 tax jurisdictions in the U.S., making ATC the most comprehensive and only independent platform available.
For more information about how we help traditional and digital dealerships and retailers, automotive credit providers, loan aggregators, and many others create a better, more seamless automotive sales experience, feel free to reach out to [email protected].
Recently, ATC went through some strategic planning to continue improving the services and products we provide to our customers. Part of this planning involved talking with our customers to learn what we do well, and what we could improve upon. Two themes emerged from these conversations: the data ATC provides is extremely accurate, and as a company, we are very easy to work with.
This was welcome feedback, because accurate nationwide tax, title and license data is an absolute must in order to create the best car buying experience for your customers, and we are pleased that we are delivering on our promise of providing the best TT&L data in the automotive industry. Being easy to work with means that you can focus your energy and attention on your customer’s car buying experience, and creating a deeper connection with them, and not expend valuable time and resources on us.
Chris Ciccone of Roadster said, “Accurate pricing is the foundation of any great digital retailing solution, which means that taxes and registration fees have to be spot on in every state and for every customer. ATC has been instrumental in delivering this data seamlessly. Not only do they make the process easy, but they are true partners willing to go the extra mile anytime we need them.”
When Chris says we deliver data seamlessly, we do. Our API can integrate with any digital tools because that’s what our customers told us they needed so that is exactly what we developed.
Christina Cuatto of DealerOn said, “ATC has the highest quality tax/fee data in the industry, so partnering with them to power our native ecommerce solution, APEX, was an easy decision. Our experience with the ATC team has been great and we look forward to our mutual continued success.”
When success is shared, we all have “skin in the game” and strive to make each other’s business better, and working with ATC gives you a true feeling of “team,” because we know if we do good work, so will you, and when you succeed, so do we.
Nicholas Stellman of Digital Motors summed it up nicely by saying “ATC provides us with complete TT&L data helping us deliver an amazing car buying experience!” Again, with ATC on your team, you can focus on what matters most: your customer’s car buying experience.
Sometimes you need to take a moment and ask your customers what they think about your products and services, and that’s exactly what ATC did. As with any business, there are things we are working on improving, but it’s also good to know when you are fulfilling your business promise. We appreciate our customers and will continue to provide the products and services that help them sell more cars.
ATC provides dealers, lenders, and auto technologies accurate TT&L data for in-state and out-of-state vehicle title and registration. For more information about how to create a better, seamless offline to online experience, feel free to reach out to [email protected].
Car and truck titling and registration is a complicated process and exceptionally time-consuming. As direct lending and online car sales skyrocket, additional pressure is put upon the titling departments of Banks and Credit Unions, which are not typically equipped with the right tools to produce the data to properly calculate tax, title and license (TT&L). The added burden of having the correct documentation to finalize the transaction with the DMV has typically added between 4-6 hours to each transaction.
ATC Fast Data now offers Bank and Credit Union titling departments the ability to have all the necessary DMV information they need for an automotive transaction at their fingertips. By using ATC Fast Data, they can complete a transaction in less than an hour!
ATC Fast Data offers a simple system for Bank and Credit Union title clerks to quickly assemble required information so they can avoid spending hours online searching DMV websites for the information or spending just as much time on the phone gathering the info. ATC Fast Data provides the necessary tax, title and registration information for every jurisdiction in the country for properly (and quickly) completing title and registration work.
This means that Banks and Credit Unions can increase their revenue from vehicle transactions by decreasing the time it takes to process each transaction with the DMV.
ATC Fast Data provides:
- Collection of transaction data to accurately calculate out-of-state TT&L based on that specific transaction
- Information auto-populated into every document to cut down on manual work
- Taxes, registration fees, instructions, and documents provided instantly after submitting transaction information
- Transaction data housed in a centralized dashboard, exportable for external or internal use
- All information needed to acquire duplicate titles from every state DMV
ATC Fast Data uses token pricing so you only pay for the information you need and use.
