The FinTech platform is a game-changer in used car financing
Photo by Oziel Gómez on Unsplash
Frustrating both customers and dealers, the traditional way of getting a loan to buy a car has borrowers panicky. The system can take too long, reduces the fun of buying the vehicle, and adds hassle to the seller.
This is where the Connecticut-based company Automatic United States intervenes to smooth the whole process. This cuts the finance search time to minutes rather than the hours typically spent by exasperated customers and dealers of all brands, like Ford (NYSE: F) and General Motors (NYSE: GM) – and the country.
The company currently supports more than 850 small used vehicle dealers in 13 states using a platform that offers software that allows immediate access to all the information and data needed to take out a loan. safely and quickly. The time savings keep the customer happy and allow dealership staff to move on to other business with other customers more quickly, improving efficiency.
“Using Automatic is a really intuitive encounter,” says Eric Burney, CEO and co-founder. “And it’s effective. Automatic presents a single source of clear options and digitized data that many of these family car dealers can support and trust.
It’s big there
The domestic market is large, totaling about $ 800 billion in loans, or about 10% of all US household debt, behind only student loans and mortgages. And the opportunities could expand as more customers in a COVID-19 world demand simpler digital solutions as well as the ability to do business remotely, even when it comes to purchasing a vehicle.
“The CV19 pandemic has accelerated digital innovation in the auto industry and increased demand for used cars,” the company said in its presentation materials to potential investors.
And it seems to be working. So far, Automatic USA has raised around $ 1.3 million through its Wefunder crowdfunding project. The goal is $ 20 million raised and the minimum investment is $ 100.
COVID-19 exacerbates the trend
Burney, with 18 years of experience in the auto trade and an existing network of around 2,000 dealerships since entering the industry, says the industry has not changed since 2001. The combination of a fragmented status quo and frustrating and the pandemic provided a window to launch the business and raise the necessary funds, he said. It also helps to have a strong management team.
“The competitive advantage of Automatic is that it was designed by people in the automotive industry,” he says.
As used car sales are also doing well in times of slower economic growth, maybe now is the time to invest, said John Liu, Director of Business Strategy for Automatic USA and co-founder.
“When you have macroeconomic trends that are driving digitization adoption, driving high used car sales, now is the time to join them,” he says.
Everyone wins when customers are happier with reduced wait times while dealers benefit from increased efficiency.
“Having a single portal allows us to get our automatic approvals much more efficiently so you can respond directly to the customer and don’t have to keep shopping around trying to find the best rate,” says Andrew Ladyga, owner of ‘Eagleville Motors, based in Connecticut. “We can pay off our loans faster, we can buy more inventory faster, and we can replenish the inventory we have.”
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