Blockchain for automotive sales, services and finance
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.
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.
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.