SpringBoardAuto Targets Full Credit Spectrum With 10 New Lender Partners | Auto Finance News

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LAS VEGAS — Online direct loan originator SpringboardAuto is working to onboard one lender to provide consumers with multiple finance offers, with another nine credit unions and banks in the “implementation pipeline” for this year, Chief Executive Jim Landy told Auto Finance News.

SpringboardAuto originates its own loans primarily in nonprime segments and has been building the technology with other yet-to-be-named auto lenders to service more of the top-tier credit.

“In auto you’re competing with the dealer, the OEMs, other banks, finance companies, lead generators, the marketplaces, so it’s really expensive to jump in and try and make it all,” Landy said during a meeting at the National Automobile Dealers Association Expo. “So part of our [strategy] has been to partner with the incumbents who have the technology and have the customers.”

Credit unions do the majority of direct lending today and have a built-in consumer base at the prime tier that aligns with Springboard’s approach, he added. By adding the credit unions, the startup can offer a full-spectrum suite of financing on its platform.  

“Someone applying online might not have a good sense of their credit situation or there is an embarrassment factor of getting declined [at the dealership],” Landy said. “It’s a better experience and more empowering of the subprime consumer because typically prime consumers have that power to buy whatever they want whenever they want, so [direct lending] levels the playing field.”   

For more content like this, attend the Auto Finance Performance & Compliance Summit, slated for May 9-10, at the Omni Dallas. For information, or to register, visit autofinanceperformance.com.

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Source : AutoFinanceNews