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Prestige Financial Services, which focuses on car buyers who are in the bankruptcy process, is trying to keep pace in a fast-growing market.
September 8 -
An estimated 12 million Americans buy used cars through informal channels each year. Those consumers are underserved by traditional auto lenders, says Lending Club Chief Executive Renaud Laplanche.
August 3 -
Ally Financial surpassed Wells Fargo during the second quarter to regain its perch as the nation's largest auto lender, according to Experian Automotive.
August 27
SpringboardAuto.com, a direct-to-consumer auto lending platform, is set to launch in early 2016.
The Irvine, Calif.-based company plans to offer subprime borrowers the ability to get an auto loan online or through a smartphone, according to a Dec. 9 press release.
"The market for auto loans has changed dramatically over the past few years, yet auto lenders have not kept up with today's consumer demands," Jim Landy, who will serve as the firm's chief executive officer, said in the news release.
Landy and Stuart Holmes, who previously worked together at CarFinance Capital, founded the company.
SpringboardAuto.com will originate and service loans for institutional investors, according to the press release.
Consumers will be able to borrow in order to refinance existing loans or to finance the purchase of a new or used car, the company stated. The platform will work for both private-party transactions and purchases made at auto dealers.
The firm said that its digital processes will offer greater efficiency for auto dealers, even after accounting for the lost interest rate mark-up that dealers typically receive on loans arranged inside the dealership.
SpringboardAuto.com enters the scene at a time when subprime auto lending continues to grow, and as other nonbank auto lenders are expanding into direct-to-consumer financing.
In September, subprime specialist Prestige Financial Services
