Automotive

Blockchain for automotive sales, services and finance

Share this post:

This is the fourth of six blog posts that examine how the Automotive industry will be impacted by Blockchain.

In this post I elaborate on two use cases in the area of retail sales, service and finance.

Vehicle registration

Registration of a new vehicle or registration transfer of a used vehicle is a time consuming process that requires the buyer (or the dealer on behalf of the buyer) to submit multiple online or paper forms. Processing of the transfer by the government registrar requires checks of the vehicle against multiple third party databases for outstanding finance, insurance write-offs, stolen, scrapped etc.

A Blockchain based system would enable greater transparency and the different permissioned parties to get an end-to-end view of the process. This means that significant workflow activities could be automated. Human intervention would still be required to conduct sampling and to assess exceptional vehicles that raised warning flags. However, in aggregate, overall processing time for registrations would be reduced, generating signification cost savings for all parties involved.

Automotive Retail Lifecycle

Automotive Retail Lifecycle

Car leasing

A consumer auto finance provider does not know about the real driving behaviour of its car drivers or their vehicle’s true service history. A Blockchain based system would enable driving behaviour events (mileage, g-force threshold exceeded), safety events (airbag deployed, part replacement warning) and service events (annual service, part replaced) to get sent to a shared ledger that all parties had access to, including the owner/lease holder.

Transparency of information about a vehicle’s real wear and tear would help the auto finance provider to more accurately gauge residual value of the vehicle as the lease approached its end of contract date. This would enable the auto finance provider to achieve a higher price at subsequent onward sale than would otherwise be possible.

Take a look at our Youtube video that illustrates the Car Leasing scenario and if you’re really interested, check out the sample app that illustrates this scenario using IBM Blockchain service on the IBM Bluemix platform, Car Leasing demo app.

Learn more on Blockchain

  • Stay tuned for more blog posts on Blockchain in Automotive and read my other blog posts from this series.
  • To learn more about Blockchain and how IBM can help you, visit our website. For more on the Internet of Things, visit our blog.
More Events stories

IoT Exchange Europe: Unlock new value from data with AI and IoT

Written by Christopher Daerr | May 28, 2019 | Asset Management, Buildings, Events...

IBM IoT Exchange is an educational event designed to teach and inspire attendees with the latest innovations and thinking. It will introduce you to techniques you may not already know, and innovations that can enhance your organization’s performance. This carefully curated event will show you how to unlock the power of data with AI and IoT so you can better develop, differentiate and drive your business to success. ...read more


Accelerating Automotive Industry Compliance

Written by Michael Halder | April 11, 2019 | Engineering, Events, Events

Imagine what it would be like to have an automotive engineering solution that combines the expertise of leading OEMs and suppliers in one step. Ensuring compliance with existing industry standards would become a by-product of best practices instead of a dedicated task. This vision is becoming a reality with the help of IBM’s Engineering Lifecycle ...read more


Could an IoT Platform drive you to the edge?

Written by Laura Langendorf | April 1, 2019 | Events, Platform

From 24 -26 April, we’re hosting the first Platform Academy at IoT Exchange. We’re bringing together industry leaders, IBM experts and practitioners for 2½ days of informative sessions, hands-on demonstrations, real-world case studies and insightful panel discussions. ...read more