Retail automotive advisory firm Dave Cantin Group has launched an AI-powered data-mining software designed to provide data-driven valuations for U.S. new-car dealerships, regardless of brand, location or direct input from the dealership.

DCG said its proprietary software takes in more than 250 million data points and processes billions of data points to create real-time profiles of the more than 18,000 franchise dealerships nationwide.

The AI-powered software uses that data to establish financial information, performance data and an overall valuation for each franchise dealership. It also includes a tool to compare any subset of dealerships real time, the company said.

“Our proprietary Jump IQ software provides a significant advantage to automotive dealers who work with the Dave Cantin Group,” DCG founder and CEO Dave Cantin said in a news release. “With Jump IQ, Dave Cantin Group owns accurate, reliable real-time data that directly improves our ability to secure successful M&A outcomes for our clients.”

DCG said it began developing the software in late 2022 and has been testing it with industry stakeholders for the past six months. The company will begin widespread use of Jump IQ in its core M&A acquisitions business next month June, with the expectation it will most benefit dealership automotive groups actively seeking to acquire dealerships that are not listed for sale.

“More than half of the deals done in retail automotive are initiated by a buyer looking for a targeted acquisition,” Cantin said. “With Jump IQ, when we sit down with a buy-side client, we can model and pull up information with respect to any dealership on a big screen and strategically identify top targets based on geography, brand, revenue, performance or any number of other criteria.

“When we use that data to engage a target dealership’s principal to gauge interest in a possible divestiture, we’re informed and can engage with the assurance that our buyer’s interest is truly qualified.”

DCG is introducing a fee-for-service advisory model in conjunction with the rollout of Jump IQ that will allow dealership groups to use Jump IQ for strategic platform management.

The company said it will expand its advisory offerings later this year to include a Jump IQ-powered service that will allow it to look at more than 40 dealership key performance indicators and advise clients about the greatest opportunities for optimizing performance for enterprise value.

Data outcomes have been tested against actuals from cooperating dealers, with Jump IQ testing within a 1-9% variance across all key financials and KPIs, DCG said, adding those outcomes will continue to improve as use of Jump IQ increases.

The post DCG launches AI data-mining software for dealership valuations appeared first on Auto Remarketing.

The company reported a $44.7 million net loss from continuing operating in Q1 and a loss of $32.2 million in adjusted EBITDA.

The company had cash and cash equivalents of $91.0 million as of March 31.

“As we previously announced, our ecommerce wind-down was substantially completed during the first quarter of 2024. I am extremely proud of our team’s timely and orderly execution of the wind-down and continued focus on strengthening UACC’s operations,” CEO Tom Shortt said in a news release.

“We have focused on portfolio performance at UACC and currently expect originations since early 2023 to perform at a level that enables UACC to drive toward profitability,” he said. “We continue to take other actions to maximize stakeholder value by seeking to monetize our ecommerce platform and grow and enhance the profitability of UACC and CarStory.”

Vroom chief financial officer Bob Krakowiak added: “We ended the quarter with cash and cash equivalents of approximately $91 million. The cash burn was primarily a result of the ecommerce wind-down, as we paid severance and other personnel-related costs and incurred exit costs associated with early termination or modification of ecommerce contracts and leases. I am pleased with the completion of UACC’s 2024-1 securitization transaction, in which $262.5 million of rated asset-backed securities were sold in April 2024, and $37.5 million of non-investment grade securities initially retained were subsequently sold in early May 2024.”

The post Vroom reports net loss of $44.7M in Q1, completes wind-down of ecommerce & used-car retail business appeared first on Auto Remarketing.

The insurance technology company’s Dealer Open Lot program offers sensor-enabled parametric flood insurance, with a smart sensor installed on the lot or insured property that FloodFlash said ensures the parametric measures behind the policy correlate closely with actual losses.

The program can be used for any losses associated with flooding, including stock damage, relocation and business interruption, and the sensor sends claim data in the time it takes to send a text. The company said claims are paid on average within “a couple of weeks” after a flood.

“Certain sectors are underserved by existing flood carriers time and again,” FloodFlash U.S. commercial director Rich Coyle said. “One of the greatest examples of this is auto dealerships. Many insurers balk at the potential loss of car or motor-home stock that even low-level flooding can cause.

“Our new program is designed to support dealerships that have previously struggled to secure limits that would truly protect their businesses from flooding. It also rewards those businesses that are taking steps to mitigate their flood losses by aligning risk management practices with lower premiums.”

FloodFlash said the launch of Dealer Open Lot is especially timely because the 2024 hurricane season, which officially begins June 1, is projected by multiple experts to be one of the most active on record, making flooding a real concern for dealers in coastal areas and beyond.

The company noted many auto dealership inventories are stored on large, flat areas of often impermeable land, exposed to flooding, and unavoidable flood damage can lead to vehicle write-off and disruption to dealers around the country.

The post FloodFlash launches sensor-enabled flood insurance for ‘underserved’ dealers appeared first on Auto Remarketing.

Proficient Auto Logistics said Wednesday it priced its initial public offering at $15.00 per share, with the 14,333,333 common stock shares in the IPO expected to generate total gross proceeds of roughly $215 million prior to taking out underwriting discounts and commissions along with expenses.

Underwriters will have 30 days to buy up to 2,149,999 additional shares of common stock.

The shares began trading Thursday on the Nasdaq Global Market under the “PAL” symbol. The IPO is expected to close Monday.

Trading opened Thursday at $15.00 per share. As of 1:32 pm (ET), the price was at $14.76, reaching a high of $15.24 and a low of $14.75.

Before the IPO, Proficient Auto Logistics agreed to acquire five operating companies in multiple, separate acquisitions: Delta Auto Transport, Inc, Deluxe Auto Carriers, Inc., Sierra Mountain Group, Inc., Proficient Auto Transport, Inc. and Tribeca Automotive Inc.

(Collectively, these are referred to as “Founding Companies.”)

“The net proceeds from the offering will be used to pay the cash portion of the consideration payable to the equity holders of the Founding Companies, expenses in connection with the Combinations and for general corporate purposes, which are expected to include working capital and future acquisitions,” Proficient Auto Logistics said in a news release.

“The Company will not close the acquisition of any of the Founding Companies unless the Company closes the acquisition of all the Founding Companies. Furthermore, the closing of the Combinations and the offering are conditioned on the closing of each other.”

When the offering is complete, Richard O’Dell will become CEO and chairman of the company. He has been non-executive chairman of the board of directors at Saia since April 2020, after serving as Saia CEO from December 2006 to his retirement in April 2020.

Randy Beggs, who has been president and CEO of Proficient Transport since April 2018, will become president and COO of Proficient Auto Logistics.

Brad Wright will be chief financial officer.

The post Proficient Auto Logistics kicks off IPO with shares trading Thursday appeared first on Auto Remarketing.

While this was a sensible reaction to the situation, it also left shoppers seeking affordable new or used vehicles with nowhere to turn.

Recently, Honda announced an initiative to promote certified pre-owned vehicle leasing to address the current affordability gap. While leasing has long been available in the certified pre-owned (CPO) market, it has never been actively promoted or encouraged by dealers or manufacturers.

Ads to promote leasing in the CPO market are rare, and leasing transactions typically account for only 1-2% of premium CPO transactions. This small percentage reflects the limited use of leasing as a financing option among buyers, even in the premium segment.

Honda, a well-known mainstream brand that transacts a significant number of CPO units, has set out to change this by actively promoting leasing for CPO vehicles.

Not only will this effort address affordability by offering low monthly payments to consumers, but it will also offer dealers several advantages that should enhance their businesses overall.

The lower-payment advantage offered by leasing a vehicle is no secret. For several decades, leasing has typically accounted for 20-30% of new-vehicle transactions.

Leasing allows consumers to pay for only the portion of the vehicle they use, resulting in a lower monthly payment for the average consumer. However, leasing has been markedly less prevalent in the used and CPO portion of the market. Perhaps one reason is the mileage restrictions that usually are part of a lease contract.

It is more likely, however, that used vehicles have presented such a compelling price advantage over new vehicles that the lower payments leasing offers were unnecessary. As used-vehicle prices have increased, though, that dynamic has changed.

The primary advantage of CPO leasing is that it provides consumers with an additional viable purchasing option in a market where choices may seem abundant, but affordability remains a concern. Despite a return to incentives in the new-vehicle market, elevated new- and used-vehicle prices persist, limiting accessibility for many buyers. Those who lease can often find a CPO vehicle for which the payment fits their budget.

For dealers, the advantages of CPO leasing are numerous. First, it allows them to cater to customers they otherwise might have missed out on altogether. It also offers a competitive edge against third-party or online retailers who don’t offer factory-backed CPO programs. With CPO leasing, customers still engage with dealerships, fostering long-term connections that ideally lead to loyalty for the dealer and the manufacturer.

On the sales floor, CPO leasing can offer a logical approach to addressing affordability concerns. When customers find a new or CPO vehicle financially out of reach, salespeople can guide them towards pre-owned leasing.

Dealers who are already invested in CPO sales will find it offers another advantage. It not only presents another opportunity to engage with the customer, but for those dealers who have embraced so-called second-tier certifications, CPO leasing can offer them a steady stream of certifiable vehicles.

Similar to leasing a new vehicle, leasing a CPO vehicle allows the dealer to stay informed about the vehicle’s activity throughout the lease period. When they get back the vehicle at six years old, they better understand its history, providing additional peace of mind for potential resale. This enhances the quality of information they can offer to future customers.

By presenting slightly older vehicles as leasing alternatives at a lower cost, dealerships can provide customers with more accessible choices. With the introduction of second-tier CPO programs for older vehicles, encouraging CPO leasing creates a channel for these vehicles to transition into the CPO market once their lease terms expire, effectively expanding the CPO inventory pool for dealers while simultaneously meeting consumer demand for more affordable vehicle acquisition options.

CPO leasing offers so many advantages to consumers that it is difficult to imagine that it won’t become the industry norm. The main obstacle to certified pre-owned leasing lies in dealerships’ individual engagement with current CPO programs.

Dealerships deeply invested in CPO sales are likely to embrace leasing options, as they understand the costs involved, such as certification expenses. Dealers not currently proponents of CPO are much less likely to engage in CPO leasing.

Manufacturer incentives play a crucial role in incentivizing dealers to certify vehicles and promote CPO activity, so the success of CPO leasing initiatives hinges largely on the relationship and incentives between manufacturers and dealerships.

The CPO leasing initiative, though it may start slowly, represents another opportunity for a segment of the market previously alienated by high prices to access vehicles. Brands like Honda, Toyota, Kia and Hyundai have an advantage due to their continued production of sedans, which cater to buyers still interested in cars.

While demand for sedans in the new market may be declining, it remains stronger in the used market, where leasing in the certified pre-owned space enhances the opportunity for these customers to acquire a vehicle. The bottom line: Getting shoppers into vehicles they can afford remains a good thing for them and dealers.

CPO leasing is yet another way to accomplish that.

Ben Bartosch is manager of certified pre-owned solutions at J.D. Power.

The post COMMENTARY: Honda’s CPO leasing initiative targets affordability gap appeared first on Auto Remarketing.

DriveItAway Holdings and Westlake Financial collaborated on a solution.

Last week during the Auto Intel Summit + National Remarketing Conference, DriveItAway announced the offering of its retail app, software platform and lead base to all interested dealers, combined with fleet credit line financing offered by Westlake Fleet, part of Westlake Financial.

A critical element for a dealer to use the DriveItAway SaaS platform and benefit from the national demand is fleet financing, while the cars are on the micro-lease program paid for by the driver. Westlake Fleet now will provide funding options to DriveItAway SaaS platform dealers allowing for easy scale and implementation.

“This marks a new milestone for DriveItAway, and our micro-lease platform, which has the potential to offer hundreds of thousands of prospects now shut out of the market a quality used vehicle,” DriveItAway founder and CEO John Possumato said.

“Vital to dealers who want to expand sales and market share with the DriveItAway program is vehicle credit line funding to scale in volume, and there is no better national company to do this than Westlake Fleet, part of Westlake Financial, the leader in the industry,” Possumato continued.

“We are very proud today to announce Westlake Fleet credit line options to our dealers for our DriveItAway Micro-Lease Program,” he went on to say.

The relationship with Westlake arrived soon after DriveItAway announced the national expansion of its partnership with Partners Personnel, one of the largest and the fastest growing staffing companies in the U.S.

That partnership is meant to give all employees access to quality personal transportation on its micro-lease to purchase platform, regardless of down payment or credit score, solving one of the biggest problems in entry-level employment today, the lack of transportation to get to work.

Possumato the resulting positive response and demand for the DriveItAway program following that announcement has been overwhelming, requiring more vehicles on the platform for customers, and the company is now encouraging dealers to partner up and use its app and platform as a SaaS, offering the DriveItAway micro-lease program to satisfy this demand and their own showroom customers who may not meet down payment or credit requirements for conventional vehicle financing.

“In addition to dealers serving their own customers who might not qualify for a car loan, given more difficult conventional financing requirements, our partnership with Partners Personnel has now given us overwhelming nationwide demand for our micro-lease solution, so now is the time for the rapid expansion of our SaaS solution for all car dealers throughout the United States, to satisfy these customers,” Possumato said.

For more details, go to driveitaway.com.

The post DriveItAway & Westlake collaborate for floorplanning appeared first on Auto Remarketing.

The post Beyond the Transaction: Overcoming customers’ affordability concerns through the financing process appeared first on Auto Remarketing.

The post Beyond the Transaction: The ins and outs of reinsurance appeared first on Auto Remarketing.

The companies have launched a solution designed to securely access insights about in-market or current vehicle owners, extend match rates and improve targeting, which they said gives businesses a secure and privacy-compliant way to connect directly with consumers with a high propensity to purchase a vehicle.

InfoSum chief operating officer Lauren Wetzel said the initiative “furthers our shared commitment to deliver private collaboration solutions to meet the needs of marketers” and “enables brands to enrich data sets and execute campaigns using continuous updates.”

“Through InfoSum’s platform,” she said, “auto brands can now target in-market buyers while fully empowering their agencies and data science teams with protected access to campaign analytics.”

The companies said the new tool, built around Experian’s identity graph and InfoSum’s data clean room technology, allows auto brands to access Experian’s 750-plus off-the-shelf syndicated audience segments, covering 900 million registered vehicles in the U.S. and Canada.

That predictive ownership data on various criteria — including fuel type, make and model, and vehicle price — provides insights about consumers planning to buy in the next six months, enabling brands to enrich and extend their first-party data to generate greater reach, scale and relevancy.

InfoSum said all data remains fully obfuscated, aggregated and protected, allowing advertisers, agencies and measurement partners to use it to continually optimize audience segmentation and improve accuracy with end-to-end privacy protection.

“The importance of privacy-first collaboration platforms has never been greater, with third-party cookie deprecation underway,” Experian vice president of automotive product management Erik Hjermstad said in a news release. “Experian is deeply committed to privacy-compliant and future-proofed targeting.

“InfoSum’s privacy-enhancing technology combined with Experian’s identity resolution and auto data solutions give marketers the power to match, discover and explore critical auto consumer detail, maximizing campaign performance without exposing any PII.”

The post InfoSum, Experian seek to increase power of auto brands’ first-party data appeared first on Auto Remarketing.

Late on Wednesday, Ally announced Michael Rhodes will be its new CEO, starting at the company on April 29. Rhodes will also be appointed as a member of Ally’s board of directors at that time.

Ally highlighted Rhodes brings more than 25 years of experience across retail and consumer banking and has a track record of delivering transformative digital, data, and technology strategies.

Rhodes most recently served as CEO of Discover Financial Services and was a member of the company’s board of directors. He additionally held the role of president of Discover Bank and sat on the bank’s board of directors.

Prior to Discover, Rhodes spent more than 12 years at TD Bank, most recently as group head of Canadian personal banking, where he oversaw the division dedicated to retail products and serving customers through mobile, online, telephone, and a branch network over one thousand strong.

During his tenure at TD Bank, Rhodes also led North American credit card and merchant services and served as head of innovation, technology, and shared services. In this role, Rhodes strengthened operational resilience, security, and efficiency while improving the bank’s capability to support emerging technologies, such as artificial intelligence and cloud migration. He has also held senior positions at Bank of America and MBNA America Bank.

“I have long admired Ally’s transformational approach to digital banking and its leading position in automotive finance,” Rhodes said in a news release. “The bank has successfully harnessed the power of technology to create financial solutions for its customers and communities consistent with its ‘Do It Right’ mantra.

“I am so pleased the board has put its trust in me to continue advancing Ally’s strategy alongside the strong leadership team,” he continued. “I am eager to roll up my sleeves and, together with more than 11,000 Ally teammates, get to work.”

Rhodes replaces Jeffrey Brown, who stepped down at the end of January after nearly nine years as CEO.

Doug Timmerman, Ally’s president of dealer financial services, has been serving as interim CEO since Brown’s departure.

“After an exhaustive search process, the board has chosen Michael to lead Ally into the next stage of its evolution. Our trust is grounded in his versatile consumer banking experience, his focus on using data and insights to drive decision-making, and his commitment to creating long-term value for our stockholders,” Ally Financial chairman of the board Franklin Hobbs said.

“Importantly to Ally, Michael understands the power of a motivated workforce. He knows supporting team members and investing in workplace culture is essential to the mission of any organization. Indeed, his passion for serving both customers and employees makes him an unquestionable match to lead Ally,” Hobbs went on to say.

The post Ally picks former Discover, TD Bank exec as next CEO appeared first on Auto Remarketing.

The company announced consumers in the Providence area can now sign up for monthly subscriptions, choose their vehicle and have it delivered to their home.

Flexcar chief operating officer Ryan Quinlan said while Rhode Island residents drive an average of less than 10,000 miles per year, “the cost of car ownership in this state is stubbornly high.”

“Rhode Island ranks toward the top of car maintenance costs due to road conditions, and it’s one of the more expensive states to get car insurance in,” he said. “When you consider all of this, on top of the thousands of dollars needed for down payments and the high interest rates that are driving up monthly payments, Rhode Island residents are paying too much to have a car.”

Rhode Island becomes the fifth state serviced by Flexcar, joining metropolitan areas in Massachusetts, Georgia, North Carolina and Tennessee.

Flexcar said its memberships include insurance, maintenance, roadside assistance, title, inspection, mileage and more in one monthly payment. Drivers can choose their car on the company’s website or mobile app, specify whether they’d like to pick up the car or have it delivered, and drive the car for as long as they want.

The company said the service can save drivers more than $2,000 up front compared to the costs of buying or leasing a car, and up to 20% on monthly payments.

“Starting today, Flexcar is offering Rhode Island drivers a more affordable, convenient, and fun alternative to leasing or buying,” Quinlan said.

The post Flexcar brings its vehicle subscription service to Rhode Island appeared first on Auto Remarketing.

Will Mitchell, who has served the past three years as AFC’s chief operating officer, has been promoted to the floorplan financing provider’s president, parent company OPENLANE announced.

Mitchell will assume that role effective April 1, succeeding Jim Money, who announced his plan to retire in December. He’ll oversee the vision, strategy and all operations for AFC, including business development, sales, field and commercial operations.

The company said Mitchell will join OPENLANE’s executive leadership team and report to OPENLANE CEO Peter Kelly.

“Will is an experienced and forward-thinking leader with a bold vision for AFC,” Kelly said in a news release. “Couple that with his accountability mindset and proven track record delivering results for both our customers and our company and Will is well positioned to lead AFC into the future.

“His unmatched understanding of our business and deep customer and employee relationships will help ensure a seamless transition of management responsibilities.”

Will Mitchell

Mitchell joined AFC in 2015 working on mergers and acquisitions and rose to vice president of business development in 2018 before his promotion to COO on 2021. Under his watch, OPENLANE said, AFC has increased its market share, launched new flexible financing solutions for independent dealers and advanced the company’s digital transformation.

In all, he has 20 years of experience in strategy, planning, business development and operations in the energy field and other industries.

“I’m humbled and thrilled to bring my experience, energy and vision to the helm leading AFC,” Mitchell said. “I’m fortunate to begin my tenure as AFC president from a position of strength, with an amazing team dedicated to helping independent dealers achieve their dreams.

“Together, we’ve built an industry-leading offering — and together, we’ll continue innovating and delivering the very best service and products to help our customers be more successful.”

The post COO Mitchell to succeed retiring Money at helm of AFC appeared first on Auto Remarketing.

The post PODCAST: Autonomy CEO Scott Painter returns to show appeared first on Auto Remarketing.

The post Honda, Acura add leasing option to CPO programs appeared first on Auto Remarketing.

Tran discusses how lenders and dealers can find opportunities in today’s volatile market, the differences between subprime consumers and the rest of the economy, and his rapid rise from marketing intern to Trust Science’s executive vice president of corporate affairs.

Listen to the conversation in the window below.

The post PODCAST: Trust Science’s Colin Tran on finding opportunity in volatility appeared first on Auto Remarketing.

The new tool is designed to give consumers a quick and accurate estimate of their vehicle’s equity. Users can access the current residual value of their leased car, based on data GoodCar receives as an approved NMVTIS data provider, by entering the make, model and year. They can also sign up for free and look up residual values by entering their vehicle’s VIN or license plate information.

They can then compare that value with the payoff price listed in their lease agreement to determine the equity they have accrued.

As a result of the “seismic shift in used vehicle valuation” of the post-COVID era, GoodCar said in a news release, leased vehicles might now hold more value at the end of the lease term than previously anticipated, giving lessees the chance to trade in their vehicle or buy it out and sell it directly for profit.

The company said the goal of its new tool is to empower vehicle owners with the necessary resources to effectively navigate that opportunity.

“Our Residual Values tool is a testament to GoodCar’s commitment to equipping vehicle owners with the knowledge and resources they need to make informed decisions,” communications manager Emil Ashikyan said.

“We believe everyone should have access to comprehensive vehicle data at an affordable price, and this tool exemplifies our dedication to transparency and consumer empowerment.”

The tool is available at goodcar.com/residual-values.

Residual Values is the latest tool in GoodCar’s growing toolbox, which includes vehicle history reports, car loan and lease calculators, recall lookup and more.

The post GoodCar launches Residual Values tool to give lessees a ‘timely solution’ appeared first on Auto Remarketing.

More than 100 million miles, in fact.

The vehicle subscription service announced its customers have surpassed that milestone in Flexcar vehicles.

“People who are in the market for a car today face record-high prices for buying or leasing, countless hours spent at dealers in unpleasant negotiations and signing lease or loan contracts that lock them into car payments for years to come,” Flexcar chief operating officer Ryan Quinlan said in a news release.

“At Flexcar, we’re focused on giving people the best possible way to have a car — one that saves them time and money while offering much more flexibility in switching vehicles to meet their needs.”

Flexcar said its memberships include insurance, maintenance, roadside assistance, title, inspection, the ability to swap cars, mileage and more in one monthly payment. Drivers can choose their car on the company’s website or mobile app, specify whether they’d like to pick up the car or have it delivered, and drive the car for as long as they want.

This year, Flexcar has added new options for customers, including vehicle delivery for customers in Massachusetts and Atlanta, and vehicle-level subscription pricing across its entire fleet, which allows customers to choose the exact car that meets their lifestyle and budget based on the vehicle’s year, model and mileage, as well as their credit score.

Flexcar is currently available in Massachusetts; the Atlanta area; Nashville, Tenn.; and Charlotte, N.C.; with plans to expand to additional markets in 2024.

The post Flexcar subscribers surpass 100 million miles driven appeared first on Auto Remarketing.

The U.S. OEM certification is the first for Car Media and its parent company AutoVerify, a Canadian-based technology platform that is now certified by a total of 13 brands in Canada and the United States.

AutoVerify CEO Keith Murray said his company is “thrilled to provide these solutions to GM’s U.S. dealers.”

“As a company, we aim to deliver a better customer experience by facilitating automotive transactions from anywhere,” he said. “CM Premium Capture and CM 360 fit perfectly within this goal as they allow dealers to amplify their sales by providing a more immersive consumer experience.

“The opportunity to extend the reach of these solutions is very exciting.”

CM Premium Capture and CM 360, which are eligible for GM’s in-market retail (IMR) matching funds, use proprietary machine learning for editing, color and contrast correction, image centering and exterior background replacements to deliver results that are fully compliant with GM brand standards, AutoVerify said in a news release.

“We anticipate great demand for these revolutionary, dealer-focused products,” Murray said. “CM 360 and CM Premium Capture will allow GM dealers to generate best-in-class vehicle media and syndicate the content to their dealership and dealer group websites as well as third-party listing sites.”

The post AutoVerify gets first US OEM certification as GM approves Car Media products appeared first on Auto Remarketing.

The U.S. Navy coined the phrase “KISS” — aka “Keep it Simple Stupid”— in 1960 to refer to jet mechanics, and it was eventually adapted across the military and into software development.

But I am not a fan of the word stupid, so I rephrase KISS as “Keep it Sesame Street.” It’s a minimalist design principle that says systems should be as simple as possible to ensure the greatest levels of user acceptance and interaction. It’s also common sense that the clearer and cleaner a choice is, the more apt a consumer is to adopt and embrace it.

When it comes to the car buying experience, more choices and greater convenience from shopping to monthly payments reflect the changing landscape of financing and leasing. Online platforms, flexible terms, and digital payments each factor into the simplest possible path to put and keep each driver in their chosen vehicle. KISS!

Online financing and leasing platforms

Until recently, there was nothing simple about applying for a car loan. Piles of paperwork, long turn-around times, and head-scratching bureaucracy left many wannabe buyers ready to walk, not drive, home.

Digital transformation has made it simpler for consumers to explore and secure financing and leasing options from their browser or specialty apps. Today’s fintech platforms offer quick and easy online applications with minimal documentation. It’s no longer necessary to pull out a file cabinet and produce years of paper tax returns and pay stubs, complete pages of hand-filled applications, make copies, and send by certified mail.

And applicants don’t have to wait what used to be days or weeks for what is now a super-quick (often instant) approval and equally fast and secure digital distribution of funds.

This vastly improved online application and approval process also gives the consumer a leg-up in negotiating. Knowing in advance what they can borrow gives them the confidence to approach the sales experience fully in charge. And pre-approval lets the salesperson know that this is a qualified buyer in a particular price range.

So, whether the buyer is applying in person with a dealership finance manager or on their iPad at home: KISS!

Flexible lease and financing terms

Automakers and financial institutions are offering more flexible terms for leases and loans to encourage car ownership and win against the competition. Fintech platforms use data analytics to offer customized loan options unique to each borrower. And non-traditional credit sources like rent payments, utility bills, and other related monthly debt payments that show responsibility and reliability make loans more accessible to a larger pool of potential borrowers.

Whether it’s an offer of lower payments or reduced interest rates, a shorter lease or a longer loan period, today’s innovative solutions offer a workable plan for nearly any buyer, giving them greater control over their financial life and the chance to build a stronger credit profile that will benefit them in the long term. KISS!

Digital payment methods and apps

Finally, once the consumer is in their car, mobile apps and digital payment methods make consummating their new financial obligation easier than it’s ever been. Automatic payments take the worry out of remembering the due date each month. Account management for updating contact information or making payment changes can be performed online.

Balance inquiries make it easy to check how much is due or how long is left on the loan. Single payments for off-cycle buy-downs and pay-offs through mobile apps make it simple for borrowers to stay on top of their financial obligations.

It’s a win-win-win for lenders, sellers, and buyers in today’s digital Fintech world. Consumer-friendly choice and convenience ensures penny perfect payments. Chef’s KISS!

Aaron Bickart is general manager at OfferLogix

The post COMMENTARY: It’s all about the perfect payment appeared first on Auto Remarketing.

LeTourneau, who has been with Cox since 2012, will start the new role as executive vice president and CFO on Tuesday. He will head up the company’s finance functions and have responsibility for NextGear Capital.

Current CFO Mark Bowser is retiring at the end of the year. Bowser has been the Cox Automotive CFO for six years.

“I am excited to add Scott LeTourneau to our outstanding leadership team at Cox Automotive,” Cox Automotive president Steve Rowley said in a news release.

“He is a strategic leader with an operator’s mindset and his experience with a variety of industries and business models will help us continue to lead the automotive industry and grow long into the future,” Rowley said. “We all look forward to seeing the impact he will make on this incredible business.”

Before his Cox Enterprises role, LeTourneau was vice president of corporate development at Cox Communications.

“Cox Automotive is a dynamic business that is leading the fast-paced automotive industry during a period of significant evolution,” LeTourneau said.

“I am honored to join an experienced leadership team and excited to work with the passionate employees across our businesses to bring innovative products, services and solutions to our customers.”

The post Cox Automotive names next CFO appeared first on Auto Remarketing.

Plus, Cory discusses his journey in automotive, his work in F&I development with dealers, how he got his nickname, and much more.

Listen to the conversation below and learn more about Used Car Week here.

The post PODCAST: Cory Collins of Automotive Reinsurance Concepts on dealership F&I training appeared first on Auto Remarketing.

The data enhancement incorporates detailed state-by-state and province-by-province updates for the U.S. and Canada, including electric vehicle tax credits, and, Vincentric said, it helps ensure cost of ownership calculations for new vehicles, used vehicles, fleet vehicles and electric, hybrid and plug-in hybrid vehicles use current governmental data.

“We strive to provide our users with the most comprehensive and accurate data available,” Vincentric president David Wurster said in a news release. “This kind of full-scale update of our fees and taxes data helps ensure our users receive the most thorough and up-to-date data possible.”

That company pointed out that, while often overlooked, administrative costs such as vehicle registrations, license plate fees, property taxes and sales taxes at the state/provincial and local level can significantly impact the cost of owning a vehicle. Up to date information also helps with understanding the cost of ownership impact of electric vehicle tax credits and rebates at the national and state/provincial level.

Vincentric said its data analysts conducted a detailed review of automotive-related fees and taxes charged by all 50 U.S. states, plus Washington D.C., and all 10 Canadian provinces, plus the Northwest Territories.

The review used a wide variety of governmental sources to find the specifications and qualifications of each individual regulation to help ensure they are represented and fully and accurately accounted for in Vincentric’s cost of ownership results.

The data enhancement is available to users through Vincentric’s Dynamic Cost to Own lifecycle cost tool and Vincentric’s various application program interfaces), including the New Vehicle API and EV API.

The post Vincentric updates data on taxes and fees for all US states and Canadian provinces appeared first on Auto Remarketing.

The online used-car retailer said Thursday it has completed its previously announced debt exchange with more than 96% of noteholders.

This gives Carvana “significant financial flexibility as it continues to execute its profitability and growth plan” through cutting total debt by more than $1.325 billion, extending maturities and cutting near-term cash interest expense by over $455 million annually the next two years.

Carvana explained more in a news release: “In the Exchange Offers, holders had the opportunity to exchange their outstanding 5.500% Senior Notes due 2027, 5.875% Senior Notes due 2028, 4.875% Senior Notes due 2029 and 10.250% Senior Notes due 2030 for three tranches of new senior secured notes.

“The company further announces the expiration and completion of its concurrent cash offer (the ‘cash tender offer’ and, together with the exchange offers, the ‘offers’) to purchase any and all of the company’s outstanding 5.625% senior notes due 2025. The settlement of the offers is expected to occur on Sept. 1, 2023, unless extended or terminated and subject to certain terms and conditions.”

More details can be found here.

This greater financial flexibility comes just weeks after Carvana said it was projecting a stronger third quarter in certain key metrics.

The company had initially projected positive adjusted EBITDA for the third quarter and has now updated that to an outlook for adjusted EBITDA above $75 million.

Carvana also now anticipates non-GAAP total gross profit per unit of more than $5,500 for the third quarter, up from the initial forecast of more than $5,000.

“In the first two quarters of 2023, Carvana posted best-ever quarterly GPU and adjusted EBITDA performances, and our continuing performance so far this quarter has led us to raise our Q3 outlook,” Carvana chief financial officer Mark Jenkins said in a news release earlier this month. “Our strong execution is continuing to drive lasting business improvements, including significant fundamental gains in retail and wholesale GPU, that will power future results.”

Along those lines, Carvana said in presentation slides from the J.P. Morgan Automotive Conference in August that the ADESA platform “has grown since our acquisition, and our teams are making significant progress leveraging the ADESA footprint to drive efficiencies in Carvana’s wholesale vehicle sales.”

The company’s wholesale marketplace unit sales were up 2% year-over-year in the first quarter, then climbed 18% in the second quarter. Carvana is forecasting 8% to 12% growth in Q3.

Wholesale gross profit per unit (non-GAAP) reached $1,236 in the Q1, up from $229 a year earlier. For the second quarter, it climbed from $520 to $1,228.

Carvana is projecting wholesale GPU (non-GAAP) in the range of $800 to $1,000 for Q3, compared to $681 a year ago.

The company said in the slides that it sources and sells approximately 30% as many wholesale vehicles as “the largest U.S. dealer wholesaler.” That ratio was less than 10% in 2019.

“We see a significant opportunity to expand our wholesale offering to serve more individual and dealer customers,” Carvana said in its slides.

The post Carvana now in position for ‘significant financial flexibility’ appeared first on Auto Remarketing.

Industries such as agriculture, energy and manufacturing have long been able to hedge against price risk by using derivatives, Exponential said. Meanwhile, auto fleet owners and insurance companies have not had that option.

Exponential said its mission is to change that by creating a set of financial instruments that would allow rental car companies, auto insurers and auto lessors to transfer their financial exposure to other market participants.

“Pioneering new financial markets involves great complexity and rigor,” Exponential Exchange CEO and co-founder Ryan Naughton said in a news release. “Having investors and strategic partners connected to each side of our multi-sided market is invaluable and will help us kick-start trading and build liquidity.

“The fact that our seed round was oversubscribed amid an extremely challenging fundraising environment is a testament to our vision and ability to execute.”

Exponential recently launched its initial product, the Exponential Used Vehicle Index, designed to offer an efficient and effective method for tracking used-vehicle values using data sets and modern data science techniques.

It’s the first benchmark designed and built to serve as an underlying instrument for hedging and trading used vehicle market values.

“The transportation revolution has created a fascinating array of new mobility choices for consumers, but the companies who own, finance and insure those vehicles have limited options in managing the elevated levels of risk that come with rapid technological advancements,” MaC Venture Capital founding managing partner Marlon Nichols said. “Exponential is on a mission to create a more stable environment for the companies driving some of the world’s most groundbreaking innovations in auto and beyond. We look forward to helping them launch a full array of risk management tools, similar to ones that exist in other industries.”

Other investors include early-stage venture capital firm Autotech Ventures and Avanta Ventures, the venture capital arm of CSAA Insurance Group.

The post Exponential Exchange closes on $7.4 million funding to develop risk mitigation tools for the automotive ecosystem appeared first on Auto Remarketing.

They join the podcast from last month’s NIADA Convention, where they talked with Cherokee Media Group’s Joe Overby about how the platform works and its origin, where Caramel is in terms of funding and operational rollout and much more.

Listen to the episode below and stay tuned for more from the NIADA Convention.

The post PODCAST: Caramel co-founders Craig Nehamen & Ed Brojerdi appeared first on Auto Remarketing.

Among other topics, the pair discussed how independent dealerships are remaining resilient financially as the cost of funds and doing business continues to escalate.

The conversation can be found in the window below.

The post PODCAST: NextGear Capital president on financial resiliency of independent dealerships appeared first on Auto Remarketing.

Tran and Cherokee Media Group senior editor Joe Overby talk about Trust Science’s role as a credit decisioning and borrower acquisition platform in the car business, how the U.S. and Canadian car markets compare to each other, hot topics in auto finance like interest rates and inflation, plus much more.

Listen to the conversation below and stay tuned for more episosdes from Canada’s Used Car Week.

The post PODCAST: Colin Tran of Trust Science on top trends impacting auto finance appeared first on Auto Remarketing.

The independent financial services firm said Mowery assumes the role from Matthew Marks, who was recently named Stephens’ head of investment banking.

Stephens’ investment banking dealership practice provides a full suite of services to auto, truck, recreational vehicle, boat, agriculture and equipment dealerships, vehicle auctions and other related product and technology vendors.

“Joe is a seasoned banker and team leader who brings strong relationship building skills and transactional experience to this role. His background also includes prior dealership experience, and he has a passion for the industry,” said Matthew Marks, executive vice president and head of investment banking at Stephens. “Joe is well-suited to build on our momentum and, in my new role, I look forward to working closely with him and our dealership clients.”

Stephens has been a significant presence in the dealership space for nearly 30 years and is a premier full-service investment bank with both an advisory practice and institutional equity research covering the industry.

In the last eight years, the practice has advised on more than $14 billion of transaction value, involving more than 340 dealerships, including the sale of Van Tuyl Group to Berkshire Hathaway, one of the largest transactions in auto retail history.

“It is a privilege to assume the leadership of Stephens investment banking dealership practice, and I am excited about furthering our franchise,” Mowery said. “Stephens is fortunate that Matthew will remain involved in our work; and we also have the continuity provided by experienced team member, Stan Dimitrov, as their industry insights and relationships are invaluable.”

Stephens also announced that in connection with Mowery’s transition to the dealership group, Ross Rucker will assume the leadership role of the power and industrial technology group.

Rucker has almost 25 years of investment banking experience at Stephens, most of that focused on this industry.

“Ross has been a great partner to Joe and, more importantly, to our clients for over two decades,” Marks said. “A highly respected expert in this industry, Ross has been critical to the success of the Power and Industrial Technology group. This is a dynamic market segment of increasing importance, and we are thrilled Ross will continue to drive the success of the practice.”

The post Stephens names new head of investment banking dealership practice appeared first on Auto Remarketing.

Immanuel Klaiber is the head of remarketing, TCO and fleet at FINN, a vehicle subscription service. He joins the Auto Remarketing Podcast to discuss this strategy and more.

The conversation can be found in the window below.

The post PODCAST: Securing late-model inventory from vehicle subscription program appeared first on Auto Remarketing.

The full conversation can be found in the window below.

The post PODCAST: Aaron Bickart of OfferLogix on streamlining monthly car payment & more appeared first on Auto Remarketing.

The study also examined the behavior of 3.8 million consumers who terminated a lease between July 2021 and June 2022. It included analyzing consumer segments based on subsequent auto credit activity and a review of relevant credit metrics. Additionally, the study examined make and brand loyalty for the next vehicle acquisition.

Satyan Merchant, senior vice president and automotive business leader at TransUnion, elaborated about the study findings during an episode of the Auto Remarketing Podcast recorded during the 2023 Vehicle Finance Conference in Dallas hosted by the American Financial Services Association.

Results from the study also showed a decrease in the number of consumers ending a lease who chose to lease again from July 2021 to June 2022, with only 25% of consumers doing so. This movement represented a 40% decrease since January 2020.

The study went on to show that a larger proportion of consumers coming off of a lease were choosing to finance their next vehicles, despite the fact that this ultimately led to an average monthly payment increase of $217.

“Increasingly, we are seeing consumers at the end of their auto leases choosing not to lease another vehicle, but rather, to finance a new car purchase or buy a car with no financing at all,” Merchant said in a news release. “While this may result in short-term gains for dealers, it has the potential to lower dealer profitability in the long-term due to longer consumer cycle times and can also negatively impact future off-lease used vehicle inventory and remarketing opportunities.”

Additional study findings showed that consumers are opting to end their leases earlier in the lease life-cycle than previously.

For those consumers who ended their leases in the year 2022, TransUnion discovered 26% ended their leases six or more months prior to the lease’s expected termination date, an increase of nearly 63% since 2019.

The study also showed that only 7% of lessees ended their auto leases two or more months after the expected lease termination date, down from 15% three years prior. 

For more insight from Merchant and TransUnion, listen to this conversation.

Download and subscribe to the Auto Remarketing Podcast on iTunes.

The post PODCAST: TransUnion on keys for leasing to regain momentum appeared first on Auto Remarketing.

Is now the time used-vehicle leasing finally gains notable market share and, if so, how?

To listen to the conversation, click on the link available below.

Download and subscribe to the Auto Remarketing Podcast on iTunes.

The post PODCAST: Will used-vehicle leasing finally get notable market share? appeared first on Auto Remarketing.

Brink joined First Business Bank in 2016 as a credit analyst intern, moving into a full-time credit analyst role after graduation from the University of Wisconsin – Madison and reaching the role of senior credit analyst.

At its inception in 2020, Brink joined the floorplan financing team as lead credit analyst before his current promotion. He works with the floorplan financing team on all loan requests, mitigating risk and monitoring the floorplan financing portfolio. 

First Business Bank’s Floorplan Financing team, part of First Business Specialty Finance, offers independent dealers the flexibility to finance their used-car purchases, preserving cash flow and allowing them to buy preferred inventory. Floorplanning programs are available from $500,000 to more than $20 million for larger, well-established independent dealers.

“This limited focus, a hallmark of First Business Bank’s business model, facilitates a smaller clientele than large competitors, empowering personalized concierge service,” the company said.

The move by First Business Bank arrived amidst developments by other providers, including:

— Cox Automotive moves auction GM into NextGear Capital VP role

— Kinetic Advantage unveils 7 enhancements to floorplan management portal

— America’s floorplan provider rebranded as Axle Funding

The post First Business Bank Promotes analyst to portfolio manager of floorplan financing appeared first on Auto Remarketing.

A few days after the company announced Chuck Tapp would become CEO, another news release indicated XL Funding and Auction Credit Enterprises — two floorplan financing companies affiliated with America’s — have joined forces to operate as Axle Funding.

The updated name follows the strategic combination of the two companies first announced in March.

Leadership said this move will unify Axle Funding’s 29 markets across the United States, centralizing service, expanding offerings and increasing benefits for the dealerships leveraging this financing service.

Axle Funding president Chris Burton said, “Consolidating ACE and XLF to operate under one new unified brand just made sense. The integrated Axle brand will bolster the synergies of our associates and the combination of our territories as we continue to grow.”

“Having a robust footprint allows us to deliver enhanced services to our dealer experience,” Burton continued, adding that Axle Funding will prioritize solidifying the infrastructure of this merger to ensure improved digital experiences for auction services and the continued advancement of its physical presence to meet the demands of an evolving industry.

Auction Credit Enterprises was established in 2006 and XL Funding was created by XLerate Group (now America’s Auto Auction) in 2017.

The post America’s floorplan provider rebranded as Axle Funding appeared first on Auto Remarketing.

Autonomy has added its first markets outside of California, announcing Tuesday that the electric vehicle subscription platform is now available in Southeast Florida.

That includes Miami, Fort Lauderdale and West Palm Beach.

Florida is second only to California in terms of EV population, the company said.

“Expanding our service geographically beyond California represents a major scaling moment for our business,” Autonomy founder and CEO Scott Painter said in a news release. “EV registrations and charging stations in Florida are growing at a tremendous pace, signaling a growing population that’s eager to make the switch to an EV and the infrastructure to make it convenient to do so.

“With EVs still costing 20-40% more than gas-powered vehicles, affordability is a major barrier that Autonomy’s subscription model addresses for EV shoppers.”

Georg Bauer, co-founder and president at Autonomy, added: ““Providing affordable and flexible access to an EV is at the core of Autonomy’s existence. We are excited for Florida residents to experience a new way to get into an electric vehicle and to support Florida’s momentum toward EVs.”

Painter is among the speakers at Used Car Week, which starts Monday in San Diego.

On Nov. 17, he will be participate on an electric vehicle panel with Cherokee Media Group’s Joe Overby and AutoNation’s Gialuca Camplone during the National Remarketing Conference portion of Used Car Week.

Painter is also slated for a fireside chat with Steve Greenfield of Automotive Ventures during the NAVIcon portion of the event. That Nov. 17 session will explore “Building Visionary Companies and the Importance of Strategic Fundraising.”

The post Autonomy platform now available in Florida appeared first on Auto Remarketing.

The post Late-model used cars aren’t spared in affordability crisis appeared first on Auto Remarketing.

AFC president Jim Money and chief operating officer Will Mitchell join the show to talk about how the AFC team is getting involved in these acts of kindness, how the business has evolved in 35 years and much more.

To listen to the conversation, click on the link available below, or visit the Auto Remarketing Podcast page. 

Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.

The post PODCAST: AFC president & COO talk milestone anniversary, 35 acts of kindness appeared first on Auto Remarketing.

They delved into more detail about the auction services group that NextGear Capital launched earlier this year as well as other subjects connected with dealerships and their floorplans.

To listen to the conversation, click on the link available below, or visit the Auto Remarketing Podcast page. 

Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.

The post PODCAST: Sandy Moon & Danny McNelis of NextGear Capital appeared first on Auto Remarketing.

The agency is now operating under the Polly name, and all of its employees have transitioned to the Polly team.

The purchase continues Polly’s strategy of building a network of local independent agencies across the country. With the addition of the Brinckerhoff & Neuville location in Fishkill, N.Y., Polly now has two retail storefronts.

The company plans to have as many as 25 more local agents in other states by the end of next year.

“This acquisition expands our network of resident agents allowing us to provide customers who own several personal assets, such as homes, boats, RVs, etc. with the local knowledge they need to get the best value, coverage and service possible,” Polly co-founder and chief executive officer Travis Fitzgerald said in a news release.

“Our customers have long been able to enjoy the benefits of our best-in-class technology paired with a marketplace of major insurance carriers,” Fitzgerald said. “They now have the advantage of also having a trusted local agent to advocate on their behalf. It’s the unique combination of technology, choice, and knowledgeable agents that makes us the absolute best option for consumers.”

Steve Pogge was the previous owner of Brinckerhoff & Neuville. He is now general manager of Polly's New York office.

“For more than 50 years, we’ve worked with local customers to protect what matters most to them,” Pogge said in a news release. “I am proud of the service we’ve provided and thrilled about the opportunity to expand those opportunities with Polly.”

The post Polly acquires NY-based independent insurance agency appeared first on Auto Remarketing.

The post Consumers, regulators seek more F&I transparency appeared first on Auto Remarketing.

The electric vehicle subscription company — which says it is the “cheapest, fastest and easiest way to get a Tesla Model 3” — said in news release Wednesday that its services have launched in Bakersfield, Calif.

Autonomy launched in Los Angeles in January, then the San Francisco Bay Area in March and San Diego in April.

Autonomy is live across the entire state and is currently activating across local markets, with plans to add another delivery center and additional states soon, a company spokesperson said via email. There are more than 500 subscribers to the platform, the spokesperson said.

Its California expansion comes at a time when gas prices in the state are at record highs and well above the national average, based on AAA data. Autonomy said in the release that fuel costs in Bakersfield, specifically, are now above $6.25 per gallon.

That’s one value proposition of moving into an EV, Autonomy argues.

“Gas prices continue to soar and set new records every day across California and the rest of the country,” Autonomy founder and chief executive officer Scott Painter said in the release.

“Consumers now have a choice to ditch their gas-powered cars to go electric and save 60% or more on fuel costs,” Painter said. “EVs have been out of reach for many consumers, but with a subscription, that’s not the case anymore.”

Autonomy co-founder and president George Bauer added: “Autonomy is all about easy and affordable access to mobility. Launching in every part of California is important to us, especially as we unlock access to EVs, which was once incredibly out of reach for many consumers.

“Getting an EV doesn’t need to be costly, it doesn’t require a perfect credit score, and it doesn’t need to be forever,” Bauer said. “With Autonomy, every person gets to personalize the payment and length of their subscription, on their own terms, month to month.”

The post Autonomy expands to another Calif. market appeared first on Auto Remarketing.

The post Top 10 new vehicles leased in Q1 appeared first on Auto Remarketing.

Dealer customers will be able to access a seamless post-auction financing solution through the floor plan program in the portal, which is now available.

The self-service portal, which is located in the top navigation bar on the ACV website, allows dealers to view data such as total credit line limits, used credit across open invoices and available credit for new purchases, along with payment information and invoice information.

“ACV is a digitally native company committed to offering transparency, and ACV Capital’s new portal aligns perfectly with our commitment to leveraging digital solutions that provide easy-to-use solutions and transparency to our dealer partners,” ACV Capital general manager Shayan Khawja said in a news release.

“We always look to our dealers for feedback, and when they ask, we listen. This is just the beginning. We will continue to evolve the capabilities of this product as we gain additional dealer feedback,” Khawja said.

“Our goal is to make the vehicle financing process intuitive and easy to engage with. As a high tech, high touch company, ACV remains committed to delivering a new level of self service and dealer engagement, however our people are always available to our customers whenever needed.”

The post ACV launches self-service floor plan portal appeared first on Auto Remarketing.

Liatsis also discusses how CreditIQ, which was purchased by the CARS group in 2021, fits into the end-to-end offerings of CARS, plus why auto finance flexibility is a key target in the fintech space and much more.

CreditIQ, which was founded in 2014, was one of Auto Fin Journal's inaugural Emerging 8 winners in 2019.

To listen to this episode, click on the link available below, or visit the Auto Remarketing Podcast page. 

Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play. 

The post PODCAST: CreditIQ co-founder Bill Liatsis appeared first on Auto Remarketing.

Toprak was most recently the chief executive officer of CarHub. His auto analyst roles included being the chief analyst at Cars.com, the vice president of market intelligence at TrueCar and the executive director of industry analysis at Edmunds.

His 25-plus years in automotive includes roles at franchised dealerships, consulting with OEMs and work with consumer automotive companies.

“The automotive industry is making transformative changes at a pace that’s unprecedented in the last several decades and consumer preferences are starting to shift toward electric vehicles as an influx of models enter the market,” Toprak said in the release.

“I’m excited to join the Autonomy team and advance their mission to make access to electric vehicles more affordable and share my insights on the trends emerging across the mobility sector,” he said.

Painter, who is the founder and CEO of Autonomy, also founded TrueCar and worked with Toprak at that company.

“I’m excited to be working with Jesse again. As a leading automotive analyst with rich experience in the EV space,” Painter said in the news release.

“His insights and analysis will be important as the industry transforms, not only from ICE to EV’s, but also from buying, leasing and owning a vehicle, to flexible access vehicle subscription programs,” he said.

Autonomy’s partnership with Equifax

In other news from the company, Autonomy announced Friday that it has teamed up with Equifax. As part of their partnerships, Autonomy will utilize the Equifax InstaTouch ID mobile consumer identity and authentication solution as well as differentiated data and analytics from the company to help facilitate completely digital subscription transactions to occur on the consumer’s smartphone.

Autonomy said those transactions can happen in as quick as 10 minutes.

The company debuted its Tesla Model 3 subscription platform in January in California, and plans to expand to other markets and EVs.

"Consistent with our mission to deliver the cheapest, fastest and easiest way to get a Tesla Model 3, and to make access to electric vehicles easy and affordable, Equifax has enabled us to deliver on a 100% mobile and digital experience for consumers in 10 minutes," Painter said in a news release.

Equifax InstaTouch ID is designed to authenticate a consumer’s identity through the company’s differentiated and alternative data sources, allowing for pre-population of consumer data while they’re submitting an online application. This can help facilitate quick and easy consumer verification and credit standing on consumers for Autonomy.

“Leading subscription services today and tomorrow will define the new digital retailing in automotive, where consumers enjoy a fast, seamless and trusted transaction process in a mobile environment,” Lena Bourgeois, who is Equifax’s general manager of automotive services, said in a news release.

“We're excited to leverage our advanced data, tools and resources that only Equifax can deliver to help power Autonomy as a leader in subscription services today and in the future,” Bourgeois said.

The post Autonomy brings in Jesse Toprak as chief analyst, partners with Equifax appeared first on Auto Remarketing.

XLerate — which is the parent company of America’s Auto Auction and XLerate Auctions, Liquid Motors as well as the two aforementioned floor plan providers — has named Chris Burton the president of both ACE and XLF.

He was previously ACE’s chief operating officer, but will now head up both floor plan companies.

“Chris helped ACE grow its footprint from five to 14 markets served and enhanced the customer experience by establishing a dealer portal,” XLerate chief executive officer Cam Hitchcock said in a news release. “These efforts led to a three-fold increase in ACE’s loan portfolio and six-fold increase in their earnings.”

He added: “We’re happy to have Chris’ industry expertise and strong leadership as we integrate these two floorplan companies. His talents will enhance our ongoing commitment to introduce products and services that facilitate growth for our dealer customers.” 

XLerate closed its purchase of America’s Auto Auction last month, a deal initially announced in December that also brough America’s ACE property under its umbrella.

Burton joined the America’s organization in 2015, following time with KPMG.

“With both ACE and XLF providing services for floor plan financing, integrating our resources will benefit current customers and pave the way for future growth,” said Burton. “I am honored to lead these companies and plan to focus our vision going forward on the continued evolution of our customer experience and service offerings.”

The post XLerate names president of ACE, XLF floor plan companies appeared first on Auto Remarketing.

To strengthen its business relationships with the auction partners that support the inventory needs of its independent dealer clients, NextGear announced on Wednesday that has created an auction services department.

The company explained through a news release that planning for the auction services began last year. NextGear indicated that the work included reimagining and realigning the company’s flooring and funding departments to create collaborative consulting teams.

Executives said the goal is to build in-depth relationships with auctions to better understand their unique needs and harness the collective resources of NextGear Capital to provide customized solutions.

“Our focus for creating a dedicated Auction Services team was to broaden our support and expertise to better meet the needs of our valued auction partners,” NextGear senior vice president of lending John Wick said in the news release.

“Bringing our best-in-industry knowledge and exceptionally skilled team members to the table allowed us to take a fresh approach to how we interact with our auction partners and become a collaborative, trusted resource to help both organizations drive growth,” Wick continued.

NextGear also said that chosen to lead this new group is Sandy Moon, the company’s associate vice president of auction and floor plan services. 

A 17-year member of the NextGear team, the company highlighted Moon brings experience in operations management and team building to her new position.

In addition, Moon has hired Danny McNelis as the team’s auction director.

Previously serving as a senior client solutions executive for NextGear, the company said McNelis brings strong relationship-building skills to this new role.

The post NextGear launches new department focused on independent auctions appeared first on Auto Remarketing.

Initially, the program will be available to consumers in California. The company plans to expand to additional U.S. markets.

“Electric vehicles have reached a tipping point, and it’s clear that the Tesla Model 3 is this generation’s Prius,” said Painter, who is chief executive officer of Autonomy, in a news release. “Financial responsibility and the avoidance of debt is also at an inflection point and subscriptions have become a pervasive, sustainable business model and a cornerstone of modern digital life.

“Autonomy is a big idea, and whether it’s freedom from long-term debt, commitment, complication, confrontation, or fossil fuels, everyone can relate to the desire for more autonomy in life.”

To listen to the conversation, click on the link available below, or visit the Auto Remarketing Podcast page. 

Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.

The post PODCAST: Inside the new venture from Scott Painter & Georg Bauer appeared first on Auto Remarketing.

With soft wholesale volume and high prices in the lanes, EBlock and Kinetic Advantage said this week through a news release that their partnership will help dealers to search for new sources to replenish their inventory. Their agreement integrates Kinetic Advantage into the EBlock checkout.

“This partnership is a win for our customers in the U.S. Kinetic is a strong floorplan and capital funding source which increases the capabilities of our customers to source the much-needed inventory they seek,” said Jason McClenahan, president and chief executive officer of EBlock parent company E Inc., which operates in both the U.S. and Canada.

EBlock’s online auction is geared to empower dealers, wholesalers and independent auctions to buy and sell inventory in less time and in a real-time virtual auction that creates the sense of urgency and energy found in a live auction.

Kinetic Advantage said its core focus is helping its independent dealer partners and team members succeed while providing them with an exceptional and engaging user experience. Kinetic added that it’s committed to forging strong partnerships through transparent communication and simple, innovative solutions.

“Kinetic is very pleased to partner with EBlock as a source for inventory to our independent dealers in the U.S.,” Kinetic Advantage president and CEO Marty McFarland said in the news release.

“EBlock has a proven track record in Canada and is experiencing exceptionally strong growth in the U.S. Coupled with Kinetic’s fast growth and best-in-class service I expect our dealers will greatly benefit from this new partnership,” McFarland went on to say.

First Business Bank lands dealer client in Mississippi

Before 2021 finished, First Business Bank announced the closing of a $4 million inventory floorplan line of credit for Direct Auto, an independent dealer in Mississippi, through First Business Bank’s Floorplan Financing group.

First Business Bank’s Floorplan Financing team offers independent dealers the flexibility to finance their inventory purchases, preserving cash flow and allowing them to buy preferred inventory. Floorplanning programs are available from $500,000 to $10 million for larger, well-established independent dealers.

According to a news release, Direct Auto owners Art Hadler Jr. and Michael West were especially pleased with the unique combination of responsive, reliable service and competitive floorplan programs available through First Business Bank.

“We were very impressed with First Business Bank’s Floorplan Financing team, their knowledge, and the bank’s commitment to the industry,” West said. “They’ve made it as easy as possible to work with them with quick loan decisions and competitive interest rates. We’re very pleased.”

With a reputation for valuing long-term partnerships, First Business Bank’s Floorplan Finance team strives to provide purchasing flexibility and opportunity to drive growth.

“We’re excited to work with Direct Auto,” said John Goodyear, who is vice president of floorplan financing at First Business Specialty Finance, a subsidiary of First Business Bank. “They have a great, successful dealership and are really energized about our partnership and what we offer in the industry. We are pleased to help them grow their dealership in the years to come.”

The post Floorplan roundup: Updates from EBlock, Kinetic Advantage & First Business Bank appeared first on Auto Remarketing.

The deal expands the companies’ existing relationship. The two-year term on the facility expires Dec. 9, 2023.

“Our business is rapidly scaling, with 2021 sales expected to more than triple compared to 2020. As a result, our financing needs have grown as well,” Shift chief financial officer Oded Shein said in a news release. 

“This new facility improves Shift’s capital position, doubling the availability of our previous floor plan, and increases our financial flexibility as we look to accelerate future growth. We are grateful to Ally for their support and confidence in Shift and look forward to a successful relationship,” Shein said.

Doug Timmerman, who is Ally’s president of dealer financial services, added: “Since 2014, the Ally team has provided a broad range of services to Shift including indirect retail financing, vehicle protection products and digital remarketing services. We’re excited to deepen our relationship with inventory financing, support Shift’s growth, and expand our shared opportunities in the used vehicle market.”

The post Shift lands $100M floorplan facility with Ally appeared first on Auto Remarketing.