It’s no secret that for years consumers have been privately listing their vehicles for sale on sites like Autotrader, Kijiji, Cars.com and more. In fact, according to the NIADA Used Car Industry Report, approximately twelve million cars were sold through private party sales in 2018. And while millions of consumers have sold their cars online, they’ve always been at the mercy of their buyer arranging financing in order to complete the deal.
New technologies today may be changing this in the consumer’s favor.
While many technological capabilities are available to dealerships, lending technology historically remained limited for consumers looking to sell their own vehicle. In a private sale, the buyer must secure their own financing independent of the seller, either through their own bank or private party lender.
However, there is always a chance that the buyer’s funding may not get approved, requiring the seller to find a new buyer. What’s more, privately selling a vehicle often-times opens sellers up to many risks including theft, misrepresentation, and fraud.
A new series of technological advancements has changed this. Lenders today are looking to offer a more effective solution for consumers in both a buying or selling situation.
Cloud-based FinTech for Automotive Finance & Leasing
One such FinTech provider is Inovatec, which offers innovative software solutions helping businesses establish a scalable, data driven business model within the automotive and equipment finance industry.
The process starts when a seller lists their vehicle for sale on a website that supports automotive resale. Through lending process management technology, the seller would have the ability to offer their vehicle for sale with financing options that are backed by a lender. Thus, allowing the buyer to work directly with the lender to purchase the vehicle, without securing financing through an outside vendor source.
This makes it possible for the seller to offer financing directly to the buyer, all made possible through an AI powered software platform that is integrated through the site itself.
Not only does this increase customer confidence in the sale, but overall customer satisfaction as well. This technology is enabled through loan origination software that builds out a loan based on a variety of factors, allowing for this “consumer-to-consumer” transaction to occur.
Conversation with Inovatec Founder & CTO Vladimir Kovacevic
To talk with us about all this we welcome Inovatec Founder & CTO Valdimir Kovacevic this week as our Special Guest on the Mobility Tech & Connectivity Show. Kovacevic was a software and network engineer with Eastman Kodak from 2002 to 2006 before forming Inovatec in 2006. Kovacevic joins us to talk about how his company is evolving today’s lending technology, and recent partnerships with Carfax, Inverite, and ZestFinance.
The Mobility Tech & Connectivity Show
Airs Live on Wednesday February 26th at 2 o’clock CST (US & Canada)
In the News…
Lyft acquires rental-car partner Flexdrive for $20 million
FEB 11 – Lyft Inc. announced in a recent conference call that it has acquired rental-car partner Flexdrive for $20 million plus, the assumption of debt and lease obligations. Chief Financial Officer Brian Roberts said that Lyft closed the purchase on Feb. 7.
Lyft had partnered with rental-car companies like Flexdrive and Hertz Global Holdings Inc. and Avis Budget Group Inc to rent cars to prospective drivers on the Lyft platform. Roberts did not disclose any changes in the program nor say that other partners would no longer be used for that purpose.
“We estimate that Lyft’s assets and liabilities related to Flexdrive will grow by approximately $75 million to $80 million at the end of Q1 relative to year-end,” Roberts said in discussing accounting changes related to the acquisition.
Lyft announced the move during a conference call related to its release of fourth-quarter financial results, which sent shares down in after-hours trading.
HyreCar and Clutch Technologies Partnership Delivers Automotive Industry’s First Comprehensive Shared Fleet and On-Demand Mobility Solution
FEB 10 – HyreCar Inc., the carsharing marketplace for ridesharing, today announced a partnership with Clutch Technologies, a Cox Automotive brand and the pioneer of subscription and mobility services software for the automotive industry. Together, HyreCar and Clutch will bring to market an industry-first mobility solution enabling shared fleet offerings paired with on-demand.
This collaboration provides dealers, OEMs and other providers with an all-inclusive solution to leverage the shift from automotive ownership to access and consumer demand for mobility alternatives.
Dealerships currently using Clutch can seamlessly integrate vehicle inventory on the HyreCar platform, connecting them directly with rideshare drivers to earn incremental recurring revenue. In turn, HyreCar’s dealer clients will be able to utilize Clutch’s industry-leading subscription software that powers a variety of convenient consumer-centric transportation solutions, such as Single Vehicle Subscription and Service Pickup and Delivery.